In July 2024, CKD Thai Corporation Ltd. (hereinafter referred to as CKD Thai), a company that manufactures and sells factory automation (FA) equipment, implemented a self-consumption PPA (Power Purchase Agreement) solar power service at its factory.
Supporting the implementation of this service was ITC ENEX (Thailand) Co., Ltd. (hereinafter referred to as ITC ENEX), a provider of solar power system installation services in Thailand.
In this article, we introduce environmental initiatives at CKD Thai and a solar power system implementation case study handled by ITC ENEX.

Based on automation technology and fluid control technology, CKD is a manufacturer that supports manufacturing sites worldwide with a product lineup exceeding 500,000 items. Given that it possesses energy-saving related product lines, the group as a whole is highly active in environmental measures and energy conservation efforts.
The Thai entity sets annual electricity consumption reduction (CO2 reduction) goals every year, implementing measures across the entire factory to achieve them. Furthermore, in June 2019, the Thai factory introduced a solar power system fastest within the CKD Group, and this PPA model is a new initiative adopted for the roof of the new factory expanded in 2021.

"As part of our energy-saving measures, CKD Thai has optimized compressor pressure, implemented inverter controls, and improved energy efficiency for air conditioning in the factory. In addition, we are running various small and large initiatives concurrently, such as promoting the monetization of waste resources, reusing cleaning rags, and going paperless through digitalization.
We also regularly hold inter-departmental contests within the company to gather specific improvement proposals from on-site staff, thereby promoting environmental measures in a bottom-up manner. As the initiative with the highest CO2 reduction effect, we introduced a solar power system using a PPA model in conjunction with the factory expansion. Implementing a solar power system is a crucial step toward a sustainable future." (Mr. Hata, CKD Thai)

The overview of the solar power system introduced to the CKD Thai factory is as follows:
■ Solar Panel Capacity: 461.680 kW
■ Expected CO2 Reduction: Annual average reduction of 279 tons
■ Expected Reduction in Grid Power Purchases: Annual average reduction of 24.2%

ITC ENEX and CKD Thai began consultations for the implementation in February 2023. They opted for a PPA model to avoid upfront initial investment costs, and full-scale operations commenced in July 2024.

A mechanism where a solar power system is installed on spaces such as factory premises or roofs, and electricity is purchased from a PPA provider. This refers to a power purchase agreement model (third-party ownership model).

【Reasons for Choosing ITC ENEX】
"After comparing and evaluating plans provided by multiple companies, we determined that ITC ENEX's plan offered the greatest benefits. In particular, the deciding factor was that the contract could be completed within a short period of 10 years.
While long-term contracts of 17 years or more are common in Japan, a shorter contract period is highly effective for minimizing risks associated with technological advancements and market fluctuations. ITC ENEX provides great flexibility, accommodating shifts to new technologies after contract expiration or adjusting contract renewals depending on the situation.
Furthermore, by having a local entity in Thailand, they have established a structure where both Japanese and Thai staff can provide meticulous communication support. This is an essential factor for ensuring smooth operations by overcoming cultural and language barriers." (Mr. Hata, CKD Thai)

Since the implementation, ITC ENEX has been supporting operations by monitoring daily generation status, sharing monthly reports, and reporting progress. They plan to provide operational management and advice in response to fluctuations in factory operating conditions.

【Future Outlook】
"Since introducing the solar power system to our first factory in Thailand in June 2019, we have generated an annual average of 531,600 kWh and reduced CO2 by 270 tons. As an extension of these efforts, this project reflects our intent to continue pursuing environmental consideration and energy efficiency in manufacturing to achieve sustainable business operations." (Mr. Hata, CKD Thai)

Through collaboration with CKD Thai, ITC ENEX implemented a solar power system that balances environmental protection with business sustainability. By formulating and introducing a PPA plan tailored to CKD Thai while keeping initial investments down, they have further strengthened CKD Thai's commitment to the environment.

Moving forward, ITC ENEX will continue to support the sustainable growth of companies as a highly reliable solar power operator in Thailand.