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Japan's Shinsei Bank has signed a project financing agreement with Japan Renewable Energy to provide a ¥10 billion (US$97 million) loan to fund the development of 40MW worth of PV projects.

The solar power projects will be built on around 50 hectares of land in the city of Mito and the town of Shirosato in Japan’s Ibaraki prefecture by Japan Renewable Energy. Construction is due to commence in June while commercial operation has been slated for January 2015.

All output generated by the PV facilities will be sold to utility firm Tokyo Electric Power Company at a fixed price for a period of 20 years.  

The project represents Japan Renewable Energy’s first solar power project. The company was set up by investment firm Goldman Sachs’ as part of its strategy to tap into the growing demand of renewable energy.

Indeed, Goldman Sachs has reportedly set aside ¥50 billion for the development of renewable energy projects in Japan over the next five years in addition to obtaining bank loans and project financing.