First for a Subway: Tokyo Metro and Kansai Electric Power Sign Physical PPA

Tokyo Metro Co., Ltd. and Kansai Electric Power Co., Inc. have signed a physical PPA (Power Purchase Agreement), the first of its kind for a subway system in Japan.

Under this agreement, KDS Solar LLC will develop and operate solar power generation facilities (approximately 990 kW). In addition, starting in April 2026, Kansai Electric Power, as a retail operator, will begin supplying renewable energy-derived electricity and environmental value to 15 commercial facilities owned by Tokyo Metro.

This agreement is expected to result in a CO2 reduction of approximately 798 tons per year at these facilities. This is equivalent to about 15% of the annual CO2 emissions of the targeted commercial facilities.

Tokyo Metro will promote the use of renewable energy through various means to achieve its long-term environmental goal, "Metro CO2 Zero Challenge 2050," and contribute to the realization of a decarbonized and circular society.

Kansai Electric Power will work together with its customers toward realizing a zero-carbon society by 2050 by developing and supplying renewable energy power sources utilizing corporate PPAs.

*1: A mechanism where consumers purchase a set of electricity and environmental value from solar power generated outside their premises. The electricity is supplied to the purchaser via the existing power grid. PPA stands for Power Purchase Agreement. *2: Jointly established by Kansai Electric Power Co., Inc., Daiwa Energy & Infrastructure Co. Ltd., and SMFL MIRAI Partners Co., Ltd. *3: The maximum output of the power conditioner that converts direct current generated by solar panels into alternating current usable in commercial facilities. *4: Calculated based on the national average factor of 0.423 kg-CO2/kWh for greenhouse gas emission calculations in fiscal 2024.

Overview of Corporate PPA - A corporate PPA is a power supply and procurement method where a consumer and a power generation business enter into a purchase agreement for newly developed renewable energy electricity. - There are on-site types, where renewable energy power sources are installed on the consumer's premises, and off-site types, where they are installed in remote locations. - Off-site types include: 1) Physical PPA, which trades both renewable energy electricity and non-fossil certificates through a retail electricity provider, and 2) Virtual PPA, which trades only non-fossil certificates.