The GE Energy Financial Services has invested an unreported amount in Pacifico Energy’s solar photovoltaic power project in Japan.
The project is financed on a non-recourse project finance basis, and was previously supported by a $107 million loan from The Bank of Tokyo-Mitsubishi and The Chugoku Bank.
The transaction constitutes part of GE Energy Financial Services' plan to invest more than $1 billion every year in renewable energy projects.
Pacifico, a solar project developer in Tokyo and a subsidiary of Virginia Solar Group, is currently managing the project’s construction and operations. Toyo Engineering is constructing the project, and photovoltaic modules are supplied by Yingli Green Energy.
The renewable energy scheme will significantly contribute towards Japans’ goal of producing about 20% of its power from renewable sources by 2030.
Subject to the approval by Japan's Ministry of Economy, Trade and Industry, it will sell generated renewable energy to a regional utility in line with a 20-year agreement.
David Nason, president and CEO of GE Energy Financial Services, said: "Our investment in Kumenan advances our global growth into new markets with a strong risk-return profile.”
He added that Kumenan will help Japan meet its renewable energy targets and could lead to future investments by the GE unit.
Jennifer Runyon, chief editor of RenewableEnergyWorld.com, a unit of PenWell sCorp., commented on the announcement: "Japan has been making huge strides in renewable energy. It changed heavily since Fukushima. That (Kumenan) is a big one," said Runyon, but noted that it produces far less power than a nuclear plant. "This is much smaller. A nuclear plant would be about 1,000 megawatts."
Construction of the photovoltaic plant, located in the prefecture of Okayama, has started and is expected to be operational by the beginning of 2016.
GE Energy Financial Services has announced that it will be investing $1.8 billion in equity and debt in more than one GW of solar power projects across the world. Additionally, it intends to provide financing for biggest solar projec in Setouchi, Japan.
Photo Source: Ctpost