Against the backdrop of CO2 reduction, translation effects, and future risks associated with fuels such as soaring oil prices and carbon taxes, there is growing momentum among leading companies to introduce and utilize natural energy sources such as wind and solar power.

Against the backdrop of CO2 reduction, translation effects, and future risks associated with fuels such as soaring oil prices and carbon taxes, there is growing momentum among leading companies to introduce and utilize natural energy sources such as wind and solar power.
However, these new energy facilities require an initial investment and are largely dependent on location, making it risky to introduce them on one's own, even if one wants to use them.
In this context, Japan Natural Energy Co., Ltd. is developing a "Green Power Certificate" business that acts as an intermediary between wind power and other renewable energy generators and users such as companies.
Although this business is widespread in Europe and other regions, it is a new venture for Japan, but it is achieving results beyond initial expectations.
The impetus for this project came from an in-house public solicitation project.
The company was established with investment from 11 companies, including Tokyo Electric Power Company, Kansai Electric Power Company, and trading companies.
The impetus came in July 1999, when TEPCO established a "wind power generation project" as part of its consideration of new businesses and solicited applications for personnel from within the company.
Tsuyoshi Shoda, who was in the sales field at the time, was the first to raise his hand in response to the call.
He said, "It would be uninteresting to just compete in the price of electricity after the deregulation of the electric power industry.
I had been thinking for some time about whether we could develop a new market for electric power, and wind power generation was the one I had in mind.
Mr. Shoda's participation in the project was also motivated by a two-year assignment from 1996 at the Institute of Energy Economics, Japan, where he studied new energy policies in European countries.
However, the cost of wind power generation is relatively high compared to conventional fossil fuel-based electricity.
There was a feeling within the company that there was no need to purchase costly electricity, and it appeared difficult to make wind power generation a viable business.
Then, in February 2000, Sony approached Tokyo Electric Power Company (TEPCO) with an offer to use wind power generation.
The company was then able to see that there was a need not only for cost, but also for environmental value that could not be seen by the naked eye, and this led to the establishment of the company and the appointment of Mr. Shoda as president, who was the one who initiated the idea.
Green power is now being marketed.
The "Green Power Certificate" was established to market green power generated by wind power generation as environmental value-added, rather than from a political standpoint.
The structure of the company's "Green Power Certificate" business is simple.
First, a user (company) that wishes to use electricity generated from natural energy sources pays the company approximately 4 yen per kWh to consign the generation of electricity and receives a "Green Power Certificate.
The company then pays approximately 3.5 yen per kWh to the wind power generation company on behalf of the user, which re-commissions the power generation.
The difference of approximately 0.5 yen becomes the company's profit as an intermediary fee and certificate issuance fee.
The wind power generator that has been commissioned to generate electricity sells the electricity it generates to a local power company for about 6 kWh, and the user receives the same supply of electricity as before from a nearby power company.
In other words, the user pays the regular electricity rate and pays a premium of 4 yen per kWh to Japan Natural Energy to purchase the added value of wind-generated electricity and a certificate as proof of that value.
Normally, electric power companies set the purchase price of wind-generated electricity in the 9-11 yen range.
Under the company's system, however, instead of selling the power for about 6 yen per kWh, the user who recognizes the added value bears the cost of the difference, thereby marketizing the invisible environmental value.
The company's system is designed to bridge the gap between windy areas suitable for wind power generation and areas where electricity is needed.
This system bridges the gap, and we see it as a business that provides tools for environmental measures.
However, it is not easy work.
While marketing to the environmental departments of companies to secure users, the company also recruits wind power generators from the public.
The company has been promoting contracts with new wind power generation companies in the hope of spreading the use of wind turbines as many as possible.
So far, the Choshi Byobugaura Wind Power Plant (Chiba Prefecture, 1,500 kW), the Noshiro Wind Power Plant (Akita Prefecture, 24 units, 14,400 kW), and the Tashirohira Wind Power Plant (Akita Prefecture, 9 units, 7,650 kW) have been constructed under the "Green Power Certificate" system.
In addition, the Green Power Certification Organization, a third-party organization that undertakes the certification of "Green Power Certificates," was established at the company's urging.
This organization includes Ilex, in which Mitsui & Co., Ltd. and others have invested, and Nattsi, a CO2 emission rights trading company in which Tokyo Tanshi and Mitsubishi Corporation have invested, and the Green Power Certification System, which is being deployed on corporate land and has been well received. At the New York Home Textile Show 2003, the company received the Best Product Award in recognition of its environmental management efforts, despite being a first-time entrant in the show.
In addition, the need for energy-saving and CO2 reduction tools is likely to increase.
The revised Law Concerning the Rational Use of Energy recommends that factories and business establishments above a certain size save 1% or more of their energy each year, and requires them to submit a report.
However, it is not easy to promote further energy conservation at factories and other facilities that have already taken measures.
The law allows factories to recognize reductions by replacing electricity consumption with electricity from clean energy sources.
Unfortunately, at this point, certificates purchased with the company's system are not recognized as a measure under the Energy Conservation Law, but the company continues to make requests to the Ministry of Economy, Trade, and Industry regarding this point.
At first, we expected more concrete social systems to be put in place, such as CO2 reduction obligations, but even without that, many more users have found value in green power than we had expected.
Currently, we only offer wind power, but in the future, we would like to offer other natural energy sources as well," said President Shoda.
In addition to the green power certificate business, the company is also engaged in research and consulting for the introduction of wind power generation, solution proposals, and contracted exhibitions at corporate and university events.
The company also plans to enter the micro-hydroelectric power generation business using its own water supply system.
President Shoda stated.
Renewable energy is relatively expensive, and it is difficult to meet all energy needs on its own.
But that does not mean we can simply dismiss it as a waste of money.
I think it is important to expand the base of the market, even if only gradually, and to establish a system that allows those who recognize the value to make a proper choice.
The company is supported by those who recognize such new value, and is beginning to lead the way as a solution provider.