Operation Strategy
External Growth Policy
In response to the expanding secondary market, CSIF has been actively acquiring "third-party developed projects" in addition to sponsor-developed properties. Sponsor Group has won bids* totaling ~180MW of mega solar power projects, which have been certified under the FIT/FIP systems, and is expected to continue offering solid pipeline to CSIF.
In an environment where FIT prices are decreasing and installation costs of solar power generation facilities are falling as a result of technological innovations, the CPPA market is expected to grow against the backdrop of strong demand for renewable energy from corporate users. Under such circumstances, CSIF plans to prepare for the future market by acquiring FIP/CPPA projects and also looking into possible collaboration with corporate off-takers.
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Accelerating AUM growth in the medium term by acquisitions of third-party development projects
As of December 31, 2024
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Internal Growth Policy
CSIF plans to avert losses of electricity sales revenue due to output curtailment and to capture upside opportunities by considering FIT-to-FIP conversions and installing storage facilities in alliance with aggregators
The scheme is expected to bring revenue larger than the fixed FIT price and drive internal growth
In terms of cost management, CSIF will look at the O&M costs, which account for a relatively large share, and will review existing service agreements at the time of upcoming renewal, aiming to adjust new service fee to the prevailing market level in order to achieve cost reduction.
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Mass Renewable Energy Introduction / Next Generation Energy Network Committee established by the Agency for Natural Resources and Energy of Japan emphasizes the importance of continuous use of renewable energy power generation facilities.
CSIF aims to increase the value of existing facilities by “re-powering” and installing “storage battery facilities” to make best use of our assets and support the profitability in the Post-FIT phase.
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CSIF’s Mid- to Long-term Strategy / Renewable Energy Market Environment
Tracking information disclosure and expansion of demand for renewable energy
- In light of the rapidly increasing awareness of global efforts towards carbon neutrality amongst Japanese electricity consumers, CSIF will grant access to tracking information (key information on renewable Power Plant as specified in the FIT Non-Fossil Certificate) of CS Daisen-cho Power Plant (A), Daisen-cho Power Plant (B), and CS Marumori-machi Power Plant for electricity consumers.
- At the Electricity and Gas Strategic Policy Subcommittee held in December 2022, a proposal to raise the minimum price of renewable energy traded in the Non-Fossil Value Trading Market has been submitted for panel review. CSIF believes that the need for renewable energy trading is rising amongst consumers.
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(Note):A FIT Non-Fossil Certificate is a certificate representing the renewable energy value of the electric power purchased under the FIT scheme that is traded on the Non-Fossil Value Trading Market operated by Japan Electric Power Exchange (hereinafter referred to as “JPEX”).
New Specific Wholesale contracts with Retail Electricity provider
- For the following Power Plants, CSIF has reviewed the existing specific wholesale contracts for premium electricity sales and concluded new specific wholesale contracts for renewable electricity and with retail electricity providers in August 2024. (*)
- CSIF believes that it will contribute to the spread of renewable energy and at the same time, contribute to the realization of internal growth through the recording of additional rental income.
| Power Plant | Renewal Period/ Termination of contract | Contract Date | Start Date of Specific Wholesale |
|---|---|---|---|
| CS Hiji-machi Dai-ni PP | Renewal for 1 year after 2 years |
April 24, 2023 | July 1, 2023 |
| CS Mashiki-machi PP | June 30, 2023 | September 1, 2023 | |
| CS Izu-shi PP | June 30, 2023 | September 1, 2023 | |
| CS Ogawara-machi PP | June 30, 2023 | September 1, 2023 | |
| CS Kasama-shi Dai-san Power Plant (*) | Renewal for 1 year after 1 years |
August 16, 2024 | November 1, 2024 |
Our approach to responding to changes in the renewable energy market environment is as follows.
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