Electric Power Supply Business: Responding to Expanding and Diversifying Global Power Demand

Improving infrastructure is essential to stimulating regional economies and creating stable employment. Electric power is the key industrial infrastructure for achieving those goals. As global demand for power expands, primarily in developed and emerging countries, the world must find a way to increase power supply and diversify energy sources.

To solve these issues, Sojitz has positioned independent power producer (IPP) projects and renewable energy as business focus areas, and is taking steps to ensure a stable supply of electricity around the world.

For Japan to maintain its presence in the global economy, it is vital that the country participate in businesses which will grow together with resource-rich countries and emerging countries. In the IPP business in particular, Japan is focusing on long-term power purchase agreements as a means to ensure the steady flow of capital.

IPP Business
An IPP is a wholesale electric power supplier. With increasing energy demand worldwide, the IPP market will continue to grow.

The Issue in the Middle East: Economies Shifting Away from Dependence on Oil

Oil-producing countries in the Middle East are preparing for the depletion of oil resources by shifting their economies away from a dependence on oil.

The Gulf countries are aggressively promoting measures to diversify their economies by cultivating non-oil industries in sectors such as manufacturing and services. Critical to that effort will be technology that produces large amounts of electric power without relying on oil. Combined cycle power plants fueled by natural gas are one such technology.

Sojitz’s Initiatives: Thermal Power Plants with High Combustion Efficiency

Sojitz began commercial operation of three large-scale thermal power plants in Saudi Arabia and Oman in 2013. The three plants – Riyadh PP11 (1,729 MW) in Saudi Arabia and Sohar 2 (744 MW) and Barka 3 (744 MW) in Oman – are all combined cycle power plants featuring low environmental impact and high combustion efficiency.

Sojitz’s Advantage: Plant Project Experience and Project Organizing Functions

The Sojitz Group has a long track record in the Middle East that extends from construction of power, steel and aluminum smelting plants to delivery of manufacturing facilities and equipment. By leveraging our experience from these businesses as well as the financing and IPP-related knowledge and project organizing capabilities developed through our large-scale IPP project experience, we will provide technology and expertise that combine reliability and competitiveness in order to meet regional needs.

Future Plans

Sojitz is currently participating in IPP businesses in nine locations around the world. Going forward, we plan to focus on expanding this business in Persian Gulf countries, where there will continue to be many opportunities for IPP projects; in Asia, where Sojitz has a strong presence; and in Africa and other regions that have high demand for infrastructure.

Initiatives in Renewable Energy

Sojitz’s Initiatives:Aggressive Development of the Solar Power Generation Business

In 2013, Sojitz announced plans to enter the utility-scale solar power business in Japan. Photovoltaic panels with total capacity of 106 MW will be installed in four locations, including the village of Rokkasho, Kamikita-gun, Aomori Prefecture.

In 2011, we began operation of a 24 MW utility-scale solar plant in Germany, the world’s most advanced country in development of solar power. This project is one of the country’s largest projects to date. Our new solar power business in Japan will apply the experience and expertise we acquired through that project.

The Rokkasho plant will be the largest of the four plants to be built in Japan. With approximately 270,000 photovoltaic cell modules, it will have a generating capacity of
71 MW, sufficient to meet the annual power needs of 19,000 households.

We are aggressively developing this business because we see solar power as an effective means of reducing greenhouse gas emissions. In addition, as all four facilities will be built on former factory sites, this business will effectively utilize idle land and help to stimulate local economies.

Drawing on our solar power business experience in environmentally conscious countries such as Germany and Japan, we plan to expand into new markets in emerging countries with power generation projects that use wind, geothermal, solar thermal, biomass and other types of renewable energy.

Sojitz’s IPP and Solar Power Businesses

Note:Figures represent total generation capacity.

Two Types of Value

Sojitz is working to respond to power shortages and increased CO 2 emissions stemming from growing energy demand. Additionally, we ensure a stable supply of electricity to support local communities while diversifying power sources through the development of renewable energy.