Otsuka Holdings Enters into Virtual PPA with Special Purpose Company Established with Sojitz –Advancing Carbon Neutral Initiatives through Expansion of Self-Generated Renewable Energy–
August 28, 2026
Otsuka Holdings Co., Ltd. (Head office: Chiyoda-ku, Tokyo, Japan; President and Representative Director, CEO: Makoto Inoue) jointly established a special purpose company1 with Sojitz Corporation (Sojitz) for renewable energy development and entered into a virtual PPA with the special purpose company in August.
A virtual PPA is a structure that separates electricity generated via renewable energy sources from its environmental value, thereby contributing to the reduction of greenhouse gas emissions through the procurement of that environmental value. The newly established special purpose company will construct numerous small-scale solar power generation facilities (small-scale decentralized solar power plants) utilizing unused land and other sites, generating approximately 51 GWh of electricity annually, together with the associated environmental value2. The installation of these new power generation facilities has “additionality,” as it effectively increases the overall supply of renewable energy in society.
Under this agreement, the Otsuka group will acquire the environmental value generated by the special purpose company and combine it with electricity procured under existing power supply agreements, thereby utilizing it as self-generated renewable energy. The electricity generated by the special purpose company will be sold on the Japan Electric Power Exchange.
The Otsuka group has set forth its 2050 environmental vision, “Net Zero,” which aims to eliminate all environmental impacts from its business activities. In the area of carbon neutrality, the group has established targets for 2028 of achieving 20% self-generated renewable energy and reducing CO₂ emissions by 50% compared to 2017. Self-generated renewable energy is a proprietary indicator defined by the Otsuka group that emphasizes additionality, aiming to contribute to the expansion of renewable energy across society. In addition to energy generated by the group’s own facilities, it also includes renewable energy newly created through collaboration with power producers and other partners. Through this initiative, the group’s self-generated renewable energy is expected to increase by 5.6%3. In addition, CO₂ emissions are expected to be reduced by approximately 21,600 tons of CO₂ annually4.
The Otsuka group has been actively advancing the procurement of self-generated renewable energy with a focus on additionality. In addition to in-house generation through the installation of solar power facilities on its own premises, the group has introduced offsite PPAs5 through collaboration with power producers to procure renewable energy from facilities located offsite. Furthermore, the group has introduced a virtual PPA as a new option, enabling the flexible procurement of environmental value without geographical constraints by separating environmental value from physical electricity. By entering into long-term agreements, the group will secure a stable supply of self-generated renewable energy, enhance business resilience, and contribute to the expansion of renewable energy generation across society.
The Otsuka group will continue to advance initiatives to reduce environmental impact across the entire group by leveraging new technologies and solutions and collaborating with diverse partners. Through these efforts, the group aims to achieve sustainable growth while contributing to the realization of a decarbonized and sustainable society.
1. A company established for the purpose of carrying out a specific business (in this case, solar power generation)
2. The power plants will be developed and brought into operation sequentially from August 2026, with installation of all plants scheduled for completion in February 2029. Projected annual generation is based on all plants being operational
3. The percentage of additional self-generated renewable energy resulting from this initiative, based on total electricity consumption in 2025
4. Amount of CO₂ emissions reduced compared to non-renewable electricity, calculated based on approximately 51 GWh of electricity generated annually by solar power facilities developed by the special purpose company
5. A mechanism for purchasing electricity via the transmission and distribution grid from renewable energy power generation outside the site premises, which use electricity