Tokyo Metro and the JERA Group Conclude a Solar Virtual Power Purchase Agreement (PPA) Aimed at Achieving Zero Emissions2024/11/26

-Tokyo Metro is First in the Industry to Utilize a Renewable Energy Data Management Solution for Real-Time Visualization of Energy Usage-

Following discussions between Tokyo Metro Co., Ltd. (“Tokyo Metro”), JERA Co., Inc. (“JERA”), and JERA subsidiary JERA Cross Inc. (“JERA Cross”) aimed at achieving zero emissions, Tokyo Metro and JERA Cross have today concluded a solar virtual power purchase agreement (PPA). This initiative is the first such collaborative measure for Tokyo Metro and the JERA Group.

One form of corporate PPA¹, a virtual PPA is a way for an electricity consumer to virtually procure the environmental value of renewable energy generated at dedicated power station located off-site from their premises. As a result of concluding the solar virtual PPA between Tokyo Metro and JERA Cross, non-fossil certificates with additionality² representing 2.4 million kWh generated by JERA’s solar power facilities (1,200 kW) will be supplied annually to Tokyo Metro through JERA Cross for a period of 25 years beginning in December 2024. This is expected to zero out the CO₂ emissions from Tokyo Metro’s headquarters building, an annual reduction of approximately 936 t-CO₂.

Tokyo Metro has established a long-term environmental goal—Metro CO₂ Zero Challenge 2050—under which it aims to halve (relative to FY2013) CO₂ emissions from all Tokyo Metro Group operations by FY2030 and achieve net-zero emissions by FY2050. So far, it has introduced energy-efficient carriages and equipment that places a lower burden on the environment. In addition, it is procuring energy from diverse sources including solar, wind, small-scale hydro, and solar with integrated battery storage through six virtual PPA’s (including the current one) as it aims for true decarbonization that sources all consumer electricity from power generation that does not rely on fossil fuels. In other words, by utilizing 24/7 carbon-free energy³, it is driving initiatives that aim to achieve a “safe, sustainable society.”

In addition, Tokyo Metro, in a first for the domestic railway industry, has begun to utilize renewable energy data management solutions from Granular Energy⁴ (in which JERA invested in October 2024) that enable accurate hour-by-hour tracking by power source type and time of power generation as well as real-time visualization of energy usage. This initiative enables the planned and efficient utilization of renewable energy.

The JERA Group aims to create new value by working together with its clients to develop solutions for the issues they face, providing corporate solution services that leverage its fuel- and power generation-related assets and expertise as well as digital technologies. In addition, as JERA works to achieve a decarbonized society, through JERA Cross it will design visions of clients’ future green transformations and formulate strategies for realizing them, provide end-to-end support from development to supply of the renewable energy that electricity decarbonization requires, and provide a stable supply of 24/7 carbon-free electricity, thereby contributing to solving client issues, transforming client businesses, and reducing CO₂ emissions. Conclusion of this agreement is an opportunity for the JERA Group to explore providing support for achieving Tokyo Metro’s long-term environmental goal—Metro CO₂ Zero Challenge 2050—by supplying carbon-free energy including renewables such as solar and wind power.

Going forward, the three companies will promote the utilization of renewable energy and drive efforts to achieve carbon neutrality and a sustainable society. Further details can be found in the attachments.

1   Corporate PPA: A contractual arrangement in which an electricity consumer purchases renewable energy directly from a power producer.

2   An increase in the world’s new renewable energy facilities due to the purchase of renewable power or non-fossil certificates. Promotes investment in new renewable energy facilities and contributes to the replacement of fossil fuels, decarbonization, and holding global warming in check.

3   “24/7 carbon-free energy” is a name for electricity that emits no CO₂ twenty-four hours a day, seven days a week, 365 days a year. In accordance with the Ministry of Economy, Trade, and Industry's "Guidelines for Retail Sales of Electricity," this means that 100% of electricity demand is supplied through a combination of zero-CO₂ emission power sources (meaning renewable energy generation facilities and hydrogen power generation facilities) together with the environmental value derived from the use of non-fossil certificates; it does not mean that no CO₂ is emitted across the fuel lifecycle including production and transportation.

4    A start-up company co-founded by Dr. Toby Ferenczi, founder of the independent, non-profit standards body Energy Tag. The company is a leader in providing solutions that raise energy transparency, including pioneering examples of 24/7 carbon-free energy.