Nippon Electric Glass enters into solar power agreement in Malaysia

Nippon Electric Glass Malaysia (NEGM) has entered into a Virtual Power Purchase Agreement (VPPA) with renewable energy company Ditrolic Energy.

The agreement will allow NEGM to procure the environmental benefits of renewable energy generated off-site.

It will see NEGM work with Res Hijau, a special purpose company under Ditrolic Energy - one of the largest Southeast Asian integrated energy companies.

The deal is set to leverage Ditrolic Energy’s solar power plant in Kedah, Malaysia.

This will reduce emissions by approximately 41,000 tonnes of CO₂ per year.

Masaya Kubo, Managing Director of NEGM, said: "NEGM is honoured to collaborate with Ditrolic Energy on this project in Malaysia, a country that has introduced various policies toward decarbonisation.

“This project is also an important and significant step forward for NEG group’s commitment to carbon neutrality."

The scheduled start of the power generation is December 2025, with a contract period of 20 years.

Approximately 75 GWh of power will be generated per year, which is equivalent to the annual electricity consumption of approximately 18,000 general households.

To achieve carbon neutrality by 2050, the NEG Group has prepared a plan for reducing CO₂ emissions.

This includes expanding the use of all-electric melting processes across more products and investing in the development of technologies that contribute to decarbonisation.

The conclusion of this VPPA is part of those efforts.

A VPPA is a means for consumers to virtually procure the environmental value of renewable energy electricity generated off-site.

In Malaysia, it can only be implemented by companies approved under the Corporate Green Power Programme, which was launched by the government in 2023.