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

Tokyo Metro Co., Ltd. (Headquarters: Taito-ku, Tokyo; President: Akihiro Kosaka; hereinafter "Tokyo Metro") and Kansai Electric Power Co., Inc. (Headquarters: Kita-ku, Osaka; President and Director: Nozomu Mori; hereinafter "Kansai Electric Power") have concluded the first physical PPA*1 (hereinafter "this Agreement") for a subway system in Japan.

Under this Agreement, KDS Solar G.K.*2 will develop and operate solar power generation facilities (approximately 990 kW*3). Furthermore, starting in April 2026, Kansai Electric Power, acting as a retail electricity provider, will begin supplying renewable energy-derived electricity and providing environmental value to 15 of Tokyo Metro's commercial facilities (hereinafter "the Facilities").

This Agreement is expected to reduce CO2 emissions at the Facilities by approximately 798 tons*4 annually. This is equivalent to approximately 15% of the annual CO2 emissions of the Facilities.

Tokyo Metro will continue to 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, circular society.

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

*1: A mechanism where a consumer purchases electricity generated by solar power facilities built off-site, along with its environmental value, as a set. The electricity is supplied to the purchaser via the existing power grid. PPA: Abbreviation 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 DC power generated by solar panels into AC power usable in commercial facilities, etc. *4: Calculated based on the national average coefficient of 0.423 kg-CO2/kWh related to greenhouse gas emission calculations for fiscal year 2024.

Overview of Corporate PPA [Image]

Types of Corporate PPA ○ A corporate PPA is a method of electricity supply and procurement in which 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 at a remote location. ○ Off-site types include (1) physical PPAs, where both renewable energy electricity and non-fossil certificates are traded through a retail electricity provider, and (2) virtual PPAs, where only non-fossil certificates are traded. [Image]