Sony to Use 15.5 Million kWh Natural Energy through "Green Power Certificate"

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May 24, 2007 18:24 Yukiko Kanoh, Nikkei Electronics

Sony Corp. has announced it has signed an agreement to contract out geothermal power of more than 10 million kWh per year with Japan Natural Energy Co., Ltd. (JNEC), a company providing power generation services using natural energy. Combined with its preceding contract for wind power generation of 5.5 million kWh, Sony will be issued a "Green Power Certificate" of up to 15.5 million kWh per year. The company claims the amount of power contracted this time is the largest volume dealt through a Green Power Certificate in Japan.

JNEC operates a "Green Power Certification System," through which it issues Green Power Certificates to companies and organizations that have utilized natural energy. JNEC is contracted power generation by companies that intend to use natural energy as one of their voluntary measures for environment protection, and subcontracts the power generation to natural energy-based power companies. The natural power companies sell generated power to local power companies, while the companies that contract the power generation are granted Green Power Certificates authorized by a third party, which takes a neutral position toward JNEC. As a benefit from this Green Power Certificate, contracting companies are deemed to have used the contracted amount of natural energy whether or not they have themselves. Contracting companies can also convert the amount of power written on the Green Power Certificate into a reduction in their CO2 emission and use it for ISO application, among other purposes. Meanwhile, natural energy power companies can recover the more expensive cost for natural energy-based power generation through sales of generated power along with commission for power generation. The Green Power Certification System was co-developed by Sony and Tokyo Electric Power Co. and has been run by JNEC jointly established later by 11 companies since 2001.

The subcontractor to generate power for Sony this time is Suginoi Hotel (Beppu, Oita) equipped with a geothermal power infrastructure boasting maximum power generation of 12 million kWh per year. Sony contracts all the power generated by the hotel, setting a standard contracted power at 10 million kWh per year. Including this agreement, the amount of power Sony and its group companies in Japan have contracted JNEC in FY2007 has reached 18.9 million kWh per year, according to Sony.

Sony has set a goal to reduce its greenhouse gas emission by 7% on an absolute amount basis by 2010 from the amount it emitted in 2000. The abovementioned power contract is also part of its efforts to meet this goal. Of the green power Sony has contracted, approximately 2.9 million kWh will be allotted to power consumption in common area at Sony Building (Tokyo) from June 2007. Combined with the amount already allotted to the showroom area, green power will account for about 75% of overall power used at Sony Building, Sony said.

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