The solution for the struggling refrigerated logistics industry suffering from rising electricity costs lies in the utilization of solar energy.
Rising electricity prices hit the frozen logistics sector hard.
[Our Construction Numbers and Client List] Total construction cost of 908.4 billion yen, with 83 solar power plants built over 12 years. Clients include Sharp, Panasonic, Daiwa House, Nomura Securities, Mitsubishi HC Capital, JA Mitsui Leasing, DMM.com, KKR, Macquarie Capital, Canadian Solar, Trina Solar, J Holdings, RE100 Power, Excelsior Japan, WindSmile, B&M Asset Management, AD Works, Sparks Asset Management, Etrion, and many others. Amidst a record-breaking heatwave, warehouses and logistics centers handling frozen foods are in distress. The operation of refrigeration units and automated warehouses requires a large amount of electricity, and electricity rates have increased by more than 30-50% compared to the previous year. Furthermore, since this autumn, some businesses preparing for contract renewals have reported receiving **"requests for a 100% price increase."** According to a survey by industry organizations, there are already cases where the proportion of electricity costs in storage fees exceeds 20%, leading to a situation where price pass-through and negotiations with shippers are unavoidable. Due to the nature of frozen logistics, which prioritizes quality preservation, there are limits to energy-saving efforts, and the "electricity cost risk" is becoming the biggest challenge for management.
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"Don't Fail! Points for Choosing a Reliable Solar Power Construction Contractor" Catalog Now Available! The Necessity of "Securing Power" to Support Logistics Infrastructure Refrigerated logistics is an essential infrastructure for daily life, including ice and frozen foods. However, it has a vulnerability where the cost structure can suddenly fluctuate depending on the contract terms with power companies and changes in international fuel market conditions. If this continues, it could lead to: Increased burden on consumers due to price transfers Elimination of small and medium warehouses due to profit pressure Decreased stability in food distribution These could trigger a chain of social issues.
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Reducing risks with renewable energy This is where "self-consumption solar power generation" comes into focus. In particular, warehouse roofs are vast and provide an ideal environment for solar installation. By introducing solar power: - Stabilization of electricity costs (utilizing long-term PPA contracts and leases) - Avoidance of risks from rising electricity prices (self-generated power is not affected by fuel adjustment costs) - Enhancement of corporate value (responding to decarbonization efforts and ESG demands from customers) These benefits can be obtained.
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![[Achievements Introduction 2.0] Over 80 projects in the last 12 years with a total construction cost exceeding 900 billion yen! Solar power construction achievements!](https://image.www.ipros.com/public/catalog/image/01/d60/799948/IPROS17991643070746557700.jpeg?w=120&h=170)
Company information
Kenneth Energy Development Co., Ltd. is a company aiming to promote renewable energy, operating in the following three main areas: 〇 Energy development business centered on solar power generation - Comprehensive support from planning, design, construction, to operation of rooftop and ground-mounted solar power plants - Assistance with connection negotiations with power companies and various permit applications, ensuring a smooth introduction even for first-timers 〇 Electrical equipment construction business - Handling a wide variety of electrical work, including new construction and renovation of commercial facilities and apartments - Broad coverage of all equipment, including lighting, air conditioning, emergency power supply, water supply and drainage, and gas piping 〇 Real estate and construction support business - Involved in infrastructure development and project support related to construction, leveraging a comprehensive construction system as a strength Additionally, many qualified professionals, such as electrical chief engineers and construction management engineers, are on staff, providing strong support for companies in their decarbonization efforts and cost reduction with high technical skills and reliable responsiveness. In the solar power-related business and real estate-related business, we can provide a wide range of support from project sourcing and investigation stages to execution stages such as EPC, tailored to your needs.
