Financing company GE Energy Financial Services is set to invest in a 32MW PV plant located in Okayama, Japan. The plant, known as Kumenan, was developed by Pacifico Energy and will be completed in 2016.
The financial move is part of GE Energy Financial Services' plan to invest more than US$1 billion annually in renewable energy projects around the world. So far, the company has made investment commitments of US$1.8 billion in more than 1GW of PV projects.
Financing Kumenan was made possible through a non-recourse project finance basis and also due to a JPY ¥11 billion (US$107.2 million) loan from The Bank of Tokyo-Mitsubishi UFJ and The Chugoku Bank Ltd.
Once operational, Kumenan will sell its generated power to a regional utility through a 20-year power-purchase agreement (PPA) after receiving approval from the Japanese Ministry of Economy, Energy and Industry.
Pacifico Energy, a subsidiary of Virginia Solar Group, will provide both management and operation services at the plant. Toyo Engineering Corporation will construct Kumenan, while its PV modules will be supplied by Yingli Green Energy.
Kazuomi Kaneto, president of Pacifico Energy, said: “To maximize our project development expertise and free up capital, we partner with experienced investors like GE Energy Financial Services, which can offer flexible financial structures, strong bank relationships and technical know-how to help enable certainty of execution.”
Pacifico Energy is remaining active this year, as the company in intends to construct four projects worth a combined output of 200MW.