Otsuka Group Establishes Solar Power Generation Facility in Donari, Tokushima as Its First Off-Site PPA Project to Promote Carbon Neutrality Initiatives
November 10, 2025
Otsuka Holdings Co., Ltd. (Head Office: Chiyoda-ku, Tokyo, Japan; President and Representative Director, CEO: Makoto Inoue) has established a solar power generation facility using an off-site power purchase agreement (PPA)*1 on the group’s premises in Donari, Awa City, Tokushima Prefecture. The facility commenced operations in November.
The Otsuka group has set a target of 20 percent self-generated renewable energy by 2028 and is advancing the introduction of solar power generation and other initiatives. Until now, it has implemented an on-site PPA approach involving the installation of power generation facilities on factory premises for self-consumption.
The solar power generation facility in Donari marks the group’s first off-site PPA project in Japan. It uses the power grid to transmit electricity from a site located outside the factory premises to various Otsuka group factories. Going forward, the group will advance its carbon neutrality initiatives further through expanding the potential for solar power generation installations through on-site and off-site PPAs and enabling the effective supply of renewable energy through new frameworks.
The Otsuka group has established the 2050 Environmental Vision, Net Zero, which aims to reduce the group’s total environmental impact of its business activities to zero. The Otsuka group has also identified Promote Positive Impact on Global Environment as one of materialities and has set medium-term goals related to carbon neutrality, circular economy, water neutrality, and biodiversity. Group-wide initiatives are being promoted in these areas. With respect to carbon neutrality, the Otsuka group has set the goals of reducing CO₂ emissions by 50 percent by 2028*² and having 20 percent of the group’s energy usage consist of self-generated renewable energy. The group is also utilizing renewable energy by introducing solar power generation facilities and CO₂-free electricity, improving energy use efficiency by introducing cogeneration systems, and pursuing fuel conversion and other measures globally. Otsuka Group Energy Management Building that serves as the central hub the group’s integrated energy management within Japan completed in 2023 as part of the group’s efforts to boost the consolidation of its energy management resources and pursue a more optimal energy mix*³.
The Otsuka group will continue to promote group-wide efforts to reduce its environmental impact through the use of new technologies and solutions with the aim of contributing to achieve carbon-free society and, ultimately, a sustainable society.
*1： Power purchase agreement (PPA)
On-site PPA: A mechanism for purchasing electricity from renewable energy power generation facilities installed on the site premises that receive electricity.
Off-site PPA: A mechanism for purchasing electricity from renewable energy power generation facilities located outside the site premises, which use electricity from the power grid.
*2： Compared to the Otsuka group’s 2017 emission levels
*3：Choosing the best ratio of diverse energy sources in consideration of the environment, economy and stable supply of energy.
■ Overview of the solar power generation facility
■ More information about the environmental initiatives of the Otsuka group.
（https://www.otsuka.com/en/csr/environment//)