Publication date: July 20, 2026
Japan to Launch First Off-Site Nuclear PPA
Kansai Electric Power announced that it will sell electricity generated by existing nuclear power plants together with environmental certificates under an off-site PPA framework, which will be the first for Japan. Until now, off-site PPAs have mainly been focused on renewable energy sources such as solar and wind power. Kansai Electric’s new offering will address demand from customers seeking to achieve carbon neutrality while stabilizing their electricity purchase prices.
The PPAs will use power generated from seven operating units at the Ohi, Takahama, and Mihama nuclear power stations. Kansai Electric owns around a combined 10 GW of nuclear and conventional hydropower capacity, but expects the share of capacity sold through PPAs to remain limited, with a significant portion reserved for its own consumption and other existing contracts. The company is particularly looking at data centers and semiconductor factories as potential consumers. Sales prices will be determined through individual negotiations with each customer. Because the contracts will use fixed prices, customers will be able to forecast their future electricity costs more easily.
Kansai Electric’s power generation division has opened a consultation desk for retail electricity suppliers and direct customers regarding PPAs for its nuclear and conventional hydropower assets. Such PPAs can be treated as open and non-discriminatory if they meet certain conditions, such as broadly soliciting customers through the generator’s website and allowing customers to choose from a wide range of retail electricity suppliers. In the United States, major technology companies and electric utilities are actively entering into nuclear PPAs, and nuclear PPAs are also expected to spread more widely in Japan.
🔍 Shulman Commentary:
The launch of Japan’s first off-site nuclear PPA scheme shows the growth in offtakers that need to secure both stable energy and environmental certificates for longer periods. So far, transmission system operators (TSOs) have been the primary buyers of nuclear power in Japan, but the new scheme allows retailers and large consumers to procure nuclear power directly, providing an additional source of decarbonized electricity.
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