Four Cities in Okayama Prefecture's Takahashi River Basin Begin Joint Procurement of Electricity for Public Facilities 　Aiming to Significantly Reduce Electricity Costs through Wide-Area Cooperation of Local Governments

The Takahashi River Basin Carbon Neutral Study Group (*), established to promote decarbonization in the Takahashi River basin, has been considering joint procurement of electricity used in public facilities by municipalities in the basin since FY2024. The following municipalities have been selected to participate in the project, which is a very rare case in Japan for a municipality to jointly procure electricity for public facilities.

(*)The committee consists of officials from the environmental departments of seven cities and three towns: Niimi, Takahashi, Soja, Hayashima, Kurashiki, Yakage, Ibara, Asaguchi, Satosho, and Kasaoka.

The study group, established in FY2022, has been working on the calculation of greenhouse gas emissions of each municipality, surveys on the potential for introducing renewable energy, and public awareness activities for local residents in order to promote regional decarbonization.

Meanwhile, the entry of electric power retailers has been fully liberalized since April 2008, and the basic policy based on the Law on Contracts for Environmental Consideration states that municipalities shall endeavor to procure electric power through contracts with retail electricity providers that have low CO2 emission coefficients.

Against this background, we have been studying the possibility of jointly selecting electric power companies for electric power used at public facilities in each municipality through general competitive bidding (electric power bidding) in order to realize cost reductions through the competitive nature of the bidding system and reduction of CO2 emissions associated with electric power use.

As a result, the following municipalities have been selected to participate in the electric power bidding for contracts in fiscal 2026, and we will continue our efforts to promote regional decarbonization through collaboration with local governments.

Participating Municipalities in the Joint Procurement of Electricity] (Contracts for FY2026)

＜Kurashiki City

Number of facilities: 126

Estimated annual electricity consumption (kWh): 20,600,000

＜Kasaoka City

Number of facilities: 38

Estimated annual electricity consumption (kWh): 6,300,000

＜Asakuchi City

Number of facilities: 31

Estimated annual electricity consumption (kWh): 6,500,000

＜Takahashi City

Number of facilities: 1

Estimated annual electricity consumption (kWh): 50,000

<Total

Number of facilities: 196

Estimated annual electricity consumption (kWh): 33,450,000

Future schedule

Early December 2025: Public notice for bidding

Mid-January 2026: Execution of bidding and determination of successful bidder

　　　 April - Start of electricity supply

URL

https://www.city.kurashiki.okayama.jp/kurashi/kankyo/1011736/1003541/1022007.html

Kurashiki City (Kurashiki Bikan Historical Area)

Kasaoka City (Kasaoka Islands)

Asakuchi City (National Astronomical Observatory of Japan, Hawaii Observatory, Okayama Branch)

Takahashi City(Bicchu Matsuyama Castle in the Sea of Clouds)