Japanese carmaker Mazda Motor Corp (TYO:7261) and peer Toyo Seat Co Ltd will offtake 4.9 MW of solar power from local utility Chugoku Electric Power Co Inc (TYO:9504) under an offsite power purchase agreement (PPA).
Delivery of the contracted electricity is set to start in stages in April 2023, Mazda announced today.
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Under the agreement, Japanese solar generation systems and semiconductor manufacturer Choshu Industry Co Ltd will serve as the electric power producer.
Specifically, Choshu and Mazda will install new solar systems on idle land in the Chugoku region. Once up and running, the new solar farms will sell their output to Chugoku Electric, which will then supply it to Toyo Seat and Mazda.
This agreement, the first in the whole Chugoku region involving more than one electric power consumer, will benefit from the Ministry of Economy, Trade and Industry’s subsidies as it involves the creation of new solar power generation installations led by electric power consumers.
