Tokorozawa Energy & Business Strategy: Establishing Tokorozawa Future Electric Power

Japan has limited natural resources and, due to its geographical location, is subject to earthquakes, typhoons and heavy rainstorms. Strengthening disaster resilience and securing the energy supply are therefore always top priorities. These are also Tokorozawa's challenges: most of the electricity used in the city has been generated outside the city, mainly by large power companies using fossil fuels of foreign origin.  This means vulnerable to natural disasters and high CO2 emissions.

Tokorozawa City has been taking steps to achieve carbon neutrality since 2011, the year we suffered the Great East Japan Earthquake and the Fukushima nuclear power plant accident. Especially, we came to the conclusion that "local production for local energy consumption" is the key to transforming society.  As a first step, we have started to install large-scale photovoltaics.

Since 2014, Tokorozawa city began installing large-scale photovoltaics as the first step towards achieving a decarbonized society. These facilities were built in two unused municipal properties to minimize the impact on the surrounding environment: a retention basin (“Float Solar”) and a landfill site (“Mega Solar”). In addition, other green energy is harnessed to the extent possible, such as thermoelectric power from a waste incineration plant, hydropower from a micro-hydroelectric facility, and rooftop solar power from schools and public facilities.

In 2018, city invested in establishing a local electricity retailer company, the Tokorozawa Future Electric Power (TFEP), to encourage residents and businesses to use locally generated power. TFEP supplies 37,000 MWh of green energy and contributes to the reduction of GHG emissions in the city. The supply includes about 9MW of locally produced green power.

The city has generated about ¥200m in revenue over the past three years by selling electricity produced at its municipal facilities to TFEP. The revenue is used to subsidize citizens and businesses to purchase renewable energy equipment, such as solar photovoltaics and solar thermal systems.

Almost all city’s facilities, including schools and community centers, signed a contract and use green energy with TFEP, as of 2021. This resulted in 85% GHGs emission reduction in 2021 fiscal year compared to the emission in 2013 fiscal year.

As a next step, the city is promoting Power Purchase Agreement (PPA) model which helps to put solar photovoltaic panels on rooftops of residential and private enterprises without initial cost. This helps to secure our own power supply and to prepare for energy crisis. 

The city worked with the following business partners to establish and promote Tokorozawa Future Electric Power (TFEP):

• JFE Engineering (a major plant construction company in Japan): expected to share its knowledge of operating an electricity utility and provide technical support.
• Hanno Shinkin Bank (local bank): expected to mobilize local connections and provide financial support.
• Tokorozawa Chamber of Commerce and Industry: expected to connect local businesses to increase green energy supply/demand.

TFEP also helps open up new business opportunities for local stakeholders. For example, an agricultural company launched its agri-photovoltaic business thanks to the establishment of the TFEP. The company installed photovoltaics (PV) systems with national and municipal subsidies and built model for local consumption and production to sell both electricity and crops.

The city disseminates information about green energy on several occasions to raise citizens’ awareness, such as at environmental education classes and community events. TFEP, in cooperation with Tokorozawa city, also promotes its plans using various channels, such as city paper and social networks, web ads, payment slips for utility, or magazines of the professional baseball team based in Tokorozawa.

In addition, TFEP offers various plans to appeal to a wide range of consumers and contribute to the community. One example is a specific plan to support the professional baseball team based in Tokorozawa. Here, part of the sales from the retailer goes to the team to support player development. TFEP also offers a discount plan to reduce the burden for household who has children younger than 15 years old.  It does not charge a basic monthly fee for every 11th and 12th month for three years.

The TFEP was established and funded by the coalition of the City and three partners: JFE Engineering (a major plant construction company), Hanno Shinkin Bank, and Tokorozawa Chamber of Commerce and Industry.

The City invested the highest amount, 5.1 million yen, followed by JFE Engineering with 2.9 million yen. Finally, the Hanno Shinkin Bank and the Chamber of Commerce contributed 1 million yen each, for a total of 10 million yen.  Other than the initial cost, there isn’t any maintenance nor operational cost for the city.

Tokorozawa, a medium-sized city, shows a sustainable model with numerous social benefits by establishing a local electricity retailer with moderate investment.

The electricity in Japan often depends on major electric companies, which mainly generate power with fossil fuel.  Through the TFEP, the locally-generated green energy, produced by the City, is purchased and supplied to city facilities, businesses, and households . This results in GHG reduction citywide, 85% GHGs emission reduction at the city facilities from 2013 to 2021.

Also, the 200 million yen revenues, made by city’s green energy, goes to a City Fund, used as subsidy to accelerate the installation of solar panels an thermal systems in private enterprises and households.

This strategy also improves city resilience: 9MW green energy has been generated and consumed in the city via TFEP. Moreover, this strategy helps to build circular economy:  900 million yens of annual sales taken back from major electric company are returning to local economy.

Altogether, these results represent a step forward to building a circular economy within the city.

The importance of using green energy is not fully recognized, thus business sector and city residents continue to use power from major electric companies. Alternatives to enhance the use of Renewable Energy Sources are limited or unknown. For example, TFEP remains unrecognized by majority of Tokorozawa residents. According to a survey conducted in the city in 2022, only 9% recognize the TFEP. To date, the number of contractors with TFEP has been lower than expected. In addition, local power companies face business difficulties due to the today’s energy crisis. TFEP is no exception.

Many city officials have visited Tokorozawa to learn Tokorozawa RES strategy and one of their main interests is the establishment of the local electricity company.  We have shared  our know-how on working with local electricity retailers and shared the steps towards the public-private coalition. As real cases, some municipalities have established local electricity companies in their areas after visiting Tokorozawa.

Webpage for IURC program
- https://www.iurc.eu/2022/02/23/bratislava-and-tokorozawa-zooming-in-on-solar-energy/

City Webpage (Achieving carbon-neutral city, Tokorozawa) only in JAPANESE
https://www.city.tokorozawa.saitama.jp/kurashi/seikatukankyo/kankyo/ecotown/zerocarboncity/zerocarboncity.html

Webpage for Tokorozawa Future Electric Power(TFEP) only in JAPANESE
https://tokorozawa-mirai.co.jp/

Naoto Yoshida
Supervisor 

Yasuyo Hamamoto
Senior Staff

City of Tokorozawa
a9133@city.tokorozawa.lg.jp
+81-4-2998-9133