Unleashing Hokkaido's renewable energy potential
The past and future of North Energy, 11 years since its founding

The movement towards decarbonization is accelerating around the world. Japan aims to reduce emissions by 46% (compared to fiscal 2013 levels) by fiscal 2030, and to achieve a decarbonized society by 2050. In the March issue of UNI-SQUARE, we will introduce North Energy, a company that is at the heart of the UNIVA Group's clean energy business and contributes to the local community with roots in Hokkaido. Thank you to Hiroe Kiya, Head of Marketing Planning Department, for your cooperation in this interview!

North Energy: 11 years of twists and turns

North Energy (NE), which celebrated its 11th anniversary in February 2025, was originally a real estate business started by a company that was primarily engaged in telecommunications. At the time, they were receiving numerous inquiries from overseas panel manufacturers regarding land for solar power generation, so they decided to take on the business themselves and decided to branch out from the real estate business.

The FIT system, which started shortly before NE was founded, was also a catalyst for NE's rapid growth. The FIT system is a system in which the government promises that electric power companies will purchase electricity generated by businesses and individuals using renewable energy sources at a fixed price for a certain period of time, with the goal of promoting the use of renewable energy. NE developed its business by selling packages to investors that cover everything from proposing solar power generation plans to construction and maintenance. NE has a proven track record in over 780 locations across the country. When the company was first established in 2014, the purchase price for electricity was set at 32 yen/kWh, which was high by global standards, and customers had to wait and pay in order to receive electricity.

However, the FIT price has been falling year by year, making it difficult to sell it as an investment product, and forcing the company to change its business model. In October 2020, the government issued the "Carbon Neutral Declaration by 2050," making it mandatory for new power companies to increase the proportion of carbon-free energy sources. Since 2021, NE has also been delivering solar power generation equipment to electric power companies, bringing the total to 130.

In addition, they have also begun working to sell "self-consumption solar power generation," in which all electricity generated is drawn into the facility and consumed there instead of being sold to power companies. Kiya explains why self-consumption solar power generation is attracting attention:

"With the cost of purchasing electricity from power companies rising every year, companies are beginning to realize that it is cheaper to produce electricity than to buy it. In addition, as companies around the world are actively working towards decarbonization, the introduction of solar power generation systems and other renewable energy sources will lead to the creation of new business opportunities for companies. In addition, there are significant tax benefits, so many companies are introducing them to save on taxes."

North Energy's current organizational structure has been revamped

Demand for self-consumption solar power generation business has increased, and the previous Promotion Department has found it difficult to keep up, so they are reviewing their organizational structure. Here are the NE's new organization and its main tasks.

Maintenance Department: This department provides maintenance throughout the year to customers who have purchased solar power equipment. The actual inspections are carried out by three people who are qualified as second-class electricians or higher. Other staff members check the amount of electricity generated by the facilities, respond to inquiries, and prepare reports on behalf of clients to be submitted to the Ministry of Economy, Trade and Industry.

Business Management Department: Manages the construction of solar power facilities. Check the proposals made by the sales staff, conduct on-site surveys, purchase parts, coordinate with related companies, and manage the process.

Business Promotion Department: Acts as a liaison office for Hokkaido Gas Co., Ltd. The main job is to find land where solar power generation facilities can be built and to make proposals and adjustments. They are also considering new business ventures.

Marketing Planning Department: A new department established to promote new sales and the PPA business* with Enecoop Co., Ltd., and is divided into three sections below.

Planning and Sales Section: The main job is to sell the self-consumption solar power generation business. For companies that want to introduce solar power generation, we listen to their requests, visit the site, and work with the Business Management Division to plan and propose the best plan.

Real Estate Section: This section is responsible for searching for land on which NE facilities can be built. It works in cooperation with the Sales Support Department, researching relevant laws and regulations, etc. This is a department that was established with great enthusiasm by NE's president, Mr. Kosaka.

Sales Support Section: The main job is to support the Planning and Sales Section and the Real Estate Section.

The rest of the department consists of the Human Resources Department and the Tax and Accounting Department.

*PPA is a new type of electricity contract model called a "Power Purchase Agreement." Businesses can rent the roofs or unused land of facilities owned by companies or local governments, install power generation equipment free of charge, and the companies or local governments can then use the generated electricity at their facilities, thereby reducing electricity bills and CO2 emissions. The equipment will be owned by a third party (the business operator or another investor), making it possible to use renewable energy without owning any assets. Last year, we proposed the idea to Tomakomai City and started a solar power generation business at city-owned facilities.

For North Energy to take a leap forward in 2025

The major achievements of the newly established Marketing Planning Department last year were winning two subsidies and winning a public works proposal on its first attempt. In 2025, we hope to actively acquire new projects by lowering the hurdles for the initial introduction of self-consumption solar power generation through subsidies and differentiating ourselves. We plan to continue taking on public works proposal projects in the future.

There are also high hopes for the widespread use of "vertical double-sided solar panels (hereinafter "vertical solar")," which we are developing in collaboration with NE and UNIVA Japan (hereinafter "UJP"). Vertical solar panels often appear in UNI-SIGHT topics, so we asked Kiya about what inspired them to be created and how they have evolved to date.

"In September 2022, UJP signed a comprehensive partnership agreement with the town of Horokanai in Hokkaido. After that, when Ubatani visited Horokanai, he was surprised that the town did not have solar power generation and asked the mayor why. The reason for this was that Hokkaido, as well as Horokanai, has the highest snowfall in Japan, and the entire area has a lot of snow, so the power generation efficiency is poor and there is a high risk of it being damaged by the weight. However, with each local government working towards a decarbonized society, Ubatani was concerned that Hokkaido was the only one lagging behind, so he looked into whether there was anything he could do and came up with vertical solar panels."

After that, NE, which has extensive knowledge of solar power generation, created a plan to propose to Horokanai Town, and UJP carried out the construction. It has been over one year since the demonstration experiment began in November 2023. The pure white snow reflects sunlight, generating more electricity than expected; this has become a hot topic as snow, which was previously thought to be an enemy of power generation, has become an ally, attracting attention and being featured in the Hokkaido Shimbun newspaper and in specialist media. The vertical double-sided solar panels will be delivered to the co-op's logistics center in January 2025, and further PR effects are expected in the future. In addition, after attending a seminar at the end of last year, discussions with Niseko Town progressed, with delivery scheduled for January 2025. In addition, in 2025 we plan to focus on proposing vertical solar to dairy farmers. Why did you decide to target dairy farmers?

"You might think, 'Aren't they farmers?' But actually, farm equipment and machinery still use gasoline, not electricity. But dairy farmers use a lot of electricity for milking machines, refrigerators and freezers. In Hokkaido, the land is so vast that even small dairy farmers spend 300,000 to 400,000 yen a month on electricity bills. Our aim is to convey the benefits of vertical solar to such dairy farmers. If we can obtain subsidies, introduce the equipment, and propose leasing it, dairy farmers won't have to pay for it out of their own pocket, and if they can reduce their electricity bills by more than the lease fees, I think they will feel a great sense of benefit."

In addition, the Business Promotion Department is working to develop sales outlets for the business of selling solar power generation equipment to electric power companies. In addition, while we have previously sold low-voltage (less than 50 kilowatts) power generation equipment, we plan to expand our business area to include high-voltage and grid batteries, and are looking for land on which we can sell large equipment to businesses.

"NE is still a growing company. We are building up achievements one by one, such as experience in proposals, obtaining subsidies, and collaborations with companies in Hokkaido. We will continue to respond sensitively to changes in society and the needs of our customers, and contribute to the realization of carbon neutrality."

Thank you, Kiya-san. We look forward to hearing from you in 2025!