Cosmo Eco Power and Nippon Steel Engineering Commence Operations Under an Off-Site PPA Utilizing FIP-Certified Onshore Wind Power Plants ~Jointly Establishing a Scheme that Curbs Fluctuation Risks~
May 28, 2026
Cosmo Energy Holdings Co., Ltd.
Cosmo Eco Power Co., Ltd.
Nippon Steel Engineering Co., Ltd.
Cosmo Eco Power Co., Ltd. (hereafter, “Cosmo Eco Power”), a subsidiary of Cosmo Energy Holdings Co., Ltd., and Nippon Steel Engineering Co., Ltd. (hereafter, “Nippon Steel Engineering”) have jointly established and commenced operations under an off-site Power Purchase Agreement (PPA)¹ to supply electricity generated at onshore wind power plants owned by Cosmo Eco Power or procured from third parties to Kioxia Iwate Corporation (hereafter, “Kioxia Iwate”).
The scheme constitutes an off-site PPA model designed to improve the renewable energy hourly matching score² while mitigating fluctuations in output by combining electricity from multiple onshore wind power plants that have transitioned from the Feed-In Tariff (FIT)³ scheme to the Feed-In Premium (FIP)⁴ scheme. Through this initiative, the two companies aim to promote greater adoption of renewable energy while supporting corporate customers in transitioning more effectively to decarbonized electricity.
▪️Overview of the Consumer-Targeted Wind Power-Based Off-Site PPA
Under the newly established scheme, Cosmo Eco Power will combine its self-operated wind power asset, the Shin-Iwaya Wind Park, with wind power sources owned by Tachikawa Wind Farm Co., Ltd. and Kaze no Mori Oga Co., Ltd. and procured in its capacity as an aggregator⁵. The electricity will then be supplied by Nippon Steel Engineering, the retail electricity provider, to Kioxia Iwate, the end user.
A key feature of this PPA is that it combines multiple wind power sources to stabilize output and improve the renewable energy hourly matching score. During periods when electricity demand cannot be fully met by wind power alone, electricity procured from the market will be supplied together with the non-fossil value derived from the aforementioned wind power assets.
The amount of electricity supplied through this initiative is expected to total approximately 35 GWh in the first fiscal year, resulting in an annual carbon dioxide (CO2) emissions reduction of approximately 15,110 tons⁶.
▪️Customer Supplied Under the PPA
| Company name | Kioxia Iwate Corporation |
|---|---|
| Location | Kitakami City, Iwate Prefecture |
▪️Wind Power Plants Utilized Under the PPA
| Power asset name | Shin-Iwaya Wind Park (onshore wind power) | Tsurugamine Wind Power Plant, Tachikawa Wind Farm Co., Ltd. | Kaze no Mori Oga Wind Power Plant, Kaze no Mori Oga Co., Ltd. |
|---|---|---|---|
| Location | Oaza Iwaya, Higashidori Village, Shimokita District, Aomori Prefecture | Tsurugamine area of Karikawa, Shonai Town, Higashitagawa District, Yamagata Prefecture | Shimo-Imonosawa, Oga Nakayama-cho, Oga City, Akita Prefecture |
| Facility capacity | 27 MW | 7.48 MW | 4.20 MW |
Shin-Iwaya Wind Park
Tsurugamine Wind
Power Plant
Kaze no Mori Oga
Wind Power Plant
▪️Initiatives Undertaken by Each Company
Cosmo Eco Power Co., Ltd.
(Representative Director and CEO: Fumiaki Nokura; 1-6-1 Osaki, Shinagawa-ku, Tokyo)
・Aggregation Service
Drawing on its experience in developing and operating its own wind power plants and transitioning them to the FIP scheme, along with its expertise in the sale and procurement of renewable energy, Cosmo Eco Power has developed an aggregation service for power producers, as well as for retail electricity providers and consumers seeking flexible renewable energy solutions. The company offers renewable energy sales and procurement solutions that are easy to implement and designed to minimize risk exposure, in accordance with customers’ needs across the entire renewable energy value chain—from production to delivery and consumption.
(Examples of Services)
| For power producers | Comprehensive support for transitioning to the FIP scheme, long-term fixed-price purchasing, assistance in increasing power generation and electricity sales volumes |
|---|---|
| For retail electricity providers and consumers | Provision of flexible options that combine conditions such as procurement price, volume, and contract duration |
Nippon Steel Engineering Co., Ltd.
(Representative Director and President: Yukito Ishiwa; 1-5-1 Osaki, Shinagawa-ku, Tokyo)
Nippon Steel Engineering’s power solutions business leverages engineering technologies developed through the construction and operation of energy plants and other facilities, together with more than 20 years of operational expertise as a retail electricity provider, to deliver decarbonization and energy solutions. These solutions include building regional circular and ecological spheres powered by locally produced, locally consumed electricity, facilitating the introduction of renewable energy PPAs, and providing optimized operational services for power generation and energy storage facilities, leveraging the company’s proprietary energy asset management system, Think EMXS™. In addition, the company is working to expand the adoption of renewable energy and stabilize regional power grids by providing balancing capabilities in the supply-demand balancing market. Through these initiatives, Nippon Steel Engineering aims to contribute to the realization of a carbon-neutral society and the building of a sustainable future.
- A PPA is a type of contract under which the electricity consumer procures renewable energy directly from the power producer. An off-site PPA is a PPA under which renewable energy is supplied to the consumer via the power grid from a generation facility located at a different site.
- Hourly matching score: A metric indicating the proportion of hourly electricity consumption that is met by renewable energy generated, and expressed as a percentage (%). This score is also being considered in international discussions on the revision of the Greenhouse Gas Protocol, from the perspective of enhancing the effectiveness of decarbonization measures.
- Under the Feed-in Tariff (FIT) scheme, electric utility operators are obligated to purchase electricity generated from renewable energy sources at a fixed price determined by the Japanese government for a certain period.
- The Feed-in Premium (FIP) scheme was introduced in April 2022 to further promote renewable energy adoption and establish it as a primary power source in Japan. Under this framework, power producers receive a premium on top of the revenue generated from electricity sales. Unlike the FIT scheme, in which electricity generated at power plants is purchased by power companies, the FIP scheme allows power producers to choose their buyers, including sales to the wholesale electricity market or direct transactions with consumers via corporate PPAs, etc.
- Aggregator: A business entity that bundles and manages multiple distributed power sources and electricity demand to ensure efficient and stable power supply and supply-demand balancing.
- The carbon dioxide (CO2) emissions reduction effect was calculated using the national average coefficient of 0.000423 t-CO2/kWh for FY2024 based on the amount of electricity generated.
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(The official language for Cosmo Energy Group's filings with the Tokyo Stock Exchange and Japanese authorities, and for communications with our shareholders, is Japanese. We have posted English versions of some of this information on this website. While these English versions have been prepared in good faith, Cosmo Energy Group does not accept responsibility for the accuracy of the translations, and reference should be made to the original Japanese language materials.)