In conjunction with the energy project developer VNET Power Co., Ltd, SHIZUOKA GAS CO., LTD. (President and CEO: Hiroyuki Kishida) will participate in a solar power project in Thailand. This project will be the first overseas renewable energy project Shizuoka Gas has participated in.

 

The two companies established a new joint company aimed at supplying solar power named VNET SG Power CO., Ltd. (hereinafter, “new company”) on June 5th, 2020. This new company signed a power purchase agreement with Rajabhat Mahasarakham University in northeast Thailand on July 7th, 2021 as its first project. Equipment for generating solar power is to be installed in locations such as the roofs of buildings at the university in order to generate power that will be used to supply energy for 20 years. With a power output of 2,139 kWp*1, predicted annual power generation is expected to be approx. 2.7 million kWh*2, which is equivalent to the annual power consumption of approx. 1,100 average Thai households. The aim is for this new company to be developed alongside this project in Thailand.

 

This project has been selected by the Ministry of the Environment for the “Financing Programme for Joint Crediting Mechanism (JCM) Model Projects *3 in FY2020” scheme. Shizuoka Gas has positioned Southeast Asia as a core area for its overseas business, showing its policy of actively participating in the energy business.

 

Based on the power development plan decided in 2019, Thailand has revealed its policy of increasing ratios for natural gas and renewable energies while aiming for generation of coal- and nuclear-free power. Furthermore, the country has set a target of increasing the ratio of renewable energies (excluding imported hydropower) to 20% of all power sources by 2037. For this reason, solar power is garnering attention due to Thailand’s abundant sunshine conditions.

 

In its 2021-2023 medium-term management plan announced in February, Shizuoka Gas Group has positioned renewable energy and overseas businesses as new growth businesses and indicated a policy of making priority investments. Shizuoka Gas will promote the realization of a decarbonized society and contribute to the development of local communities both inside and outside Japan.

 

*1: Kilowatt-peak A unit of power generation capacity for renewable energies such as sunlight. “1 kWp” means equipment that can generate 1 kW of power on average.

*2: Kilowatt hours A unit of energy. “1 kWh” means when 1 kW of power is continually generated for 1 hour. This unit is also used when power is consumed.

*3: Ministry of the Environment, Japan has been implementing the “JCM Model Projects,” which provides financial supports covering up to half of the initial investment costs. The purpose of this model projects is to financially support the implementation of projects which reduce GHG emissions by utilizing leading technologies for decarbonization in developing countries, and in return, to acquire JCM credits for achievement of Japan’s GHG emission reduction and the partner countries emission reduction target. The program was launched in 2013, and more than 160 projects have been selected to date. The project is implemented under the cooperation of the governments of Thailand and Japan.

 

1.Profile of New Company

Company Name	VNET SG Power Co.,Ltd.
Address	159/21, Serm-Mit Tower, Unit 1401, 14th Floor, Sukhumvit 21 Road (Asok), North Klongtoey, Wattana, Bangkok 10110
Representative	Sopon Punyaratabandhu
Established	June 5, 2020
Capital	18.8 million baht (approx. 65 million yen when converted at a rate of 3.5 yen per baht)
Investment Structure	VNET Power 51%, Shizuoka Gas 49%
Lines of Business	• Provision of solar power services • Surveys of energy-related business opportunities and sales in Thailand and neighboring countries

 

*Two of the new company’s five directors will come from Shizuoka Gas.

 

2.Profiles of Related Companies

   [VNET Power Co., Ltd]

Company Name	VNET Power Co.,Ltd.
Address	159/21, Serm-Mit Tower, Unit 1401, 14th Floor, Sukhumvit 21 Road (Asok), North Klongtoey, Wattana, Bangkok 10110
Representative	Sopon Punyaratabandhu
Established	February 13, 2004
Lines of Business	• Energy projects and investment in energy projects • Engineering, procurement, and construction (EPC), including design, procurement and construction of solar power generation facilities and operation and maintenance (O&M)