Examples of Reductions Through Energy Creation
In February 2023, our Hirohata factory in Hyogo Prefecture became the first Mitsubishi Electric site to introduce the on-site PPA*1 system. Despite having limited knowledge to refer to as an early adopter, we successfully implemented the system even while overcoming various challenges, including difficulties in procuring equipment.
Since its initial introduction, we have continued to maximize the available space for installations and are making efforts to further expand the system. Through initiatives such as the generation of renewable energy via solar power utilizing the on-site PPA system and various other measures, we are realizing energy creation to minimize offsetting through carbon credits*2 to contribute to the realization of a decarbonized society.
- *1）On-site PPA (Power Purchase Agreement) refers to a power sales contract, and it is also called a third-party model which differs from the self-consumption of energy generated by a company's owned facilities. An operator leases rooftops or unused land owned by a company, installs power generation equipment on those spaces, and the generated electricity is then used by the company. This enables the company to use renewable energy without owning assets.
- *2）Carbon credits are assets that represent verified efforts to reduce or remove CO2 emissions, and can be traded on the market to help offset CO₂ emissions. While carbon credits can offset factory and office emissions, this approach also comes with drawbacks, such as having to release emissions before being offset, which creates the risk of companies failing to work sufficiently hard to reduce their CO2 emissions due to their dependence on credit procurement.
Solar panels at the Hirohata factory in Hyogo Prefecture