2025 Volume 55 Issue 2 Pages 291-305
The purpose of this study was to evaluate whether roof-mount power purchase agreements （PPA） for solar power generation are feasible at public facilities in Wakayama Prefecture. First, a calculation model was constructed based on previous reports and examples of PPAs in local governments. The evaluation index used in the calculation model is the IRR, which is generally used as an index for investment decisions. Next, several public facilities in Wakayama Prefecture were assumed, and the facility utilization rates were set accordingly. Finally, the feasibility of roof-mounted PPAs at each public facility was analyzed. The analysis revealed that the feasibility of roof-mounted PPAs is significantly affected by the increase or decrease in the amount of PV electricity generated in accordance with the change in the facility utilization rate. In addition, municipalities that expect electricity procurement costs to rise in the future are strongly required to review their electricity procurement methods for the public facilities they manage, regardless of conventional electricity contracts, and the PPA project is effective as one such review proposal.
JEL Classification:Q29, Q53
