Niigata Swan Energy Supplies 80,000 MWh Annually Cutting 25,000 Tonnes of CO2

Niigata City in Japan established the Niigata Swan Energy Corporation in partnership with the private sector to capture and redistribute surplus renewable electricity from municipal waste incineration and solar generation. The initiative now supplies 676 city-owned facilities and 14 private institutions, reducing approximately 25,000 tonnes of CO2 annually compared to conventional grid electricity.

Niigata City, a government ordinance-designated city with a population of approximately 770,000, created the Niigata Swan Energy Corporation (NSE) with co-investment from JFE Engineering and Daishi Hokuetsu Financial Group. The initiative addresses a structural gap in which three city waste incineration facilities burning an average of 200,000 tonnes of waste annually generated surplus electricity that was previously sold outside the city without a local distribution mechanism. NSE now purchases and supplies approximately 80,000 MWh of electricity annually to city facilities, reducing electricity costs by around 100 million yen and cutting CO2 by approximately 25,000 tonnes.

In 2022, renewable energy accounted for 61% of NSE's total electricity supply and regionally produced electricity constituted 65%, against the city's goal of achieving energy self-sufficiency. The corporation returns profits to the city for reinvestment in further decarbonisation, including expanding solar installations on city land and private rooftops. The model creates a circular flow of energy revenue within the local economy while contributing to Niigata's goal of becoming a Zero-Carbon City by 2050. The collaboration between municipal government, engineering conglomerates, and regional financial institutions offers a replicable public-private framework for mid-sized cities.

Niigata City joined CDP disclosure through the Global Covenant of Mayors for Climate and Energy, using the reporting process to benchmark against global climate trends despite the challenge of adapting Japan-specific environmental data to the CDP Cities questionnaire format. NSE is expanding into energy management services, installing solar generation equipment and storage batteries on city and private facilities. With Japan accelerating its 2050 carbon neutrality commitments, Niigata's integrated local energy utility model demonstrates how waste-to-energy and renewable procurement can serve as twin pillars for municipal decarbonisation.

Key figure — 25,000 tonnes CO2 reduction annually