Pacifico Energy has commenced the construction on a 111MW PV installation in Nishimuro-gun, Wakayama Prefecture, Japan. The utility-scale installation, the first that Pacifico Energy developed in Wakayama Prefecture, is set to become one of the largest operational plants within the prefecture once it becomes operational.
Sharp Energy Solution has signed on as the EPC contractor for the installation, which was financed by a lending syndicate arranged by MUFG Bank. Law firm Baker McKenzie acting as legal counsel to Pacifico Energy in the deal.
The installation will be developed on the site of a golf course in Nishimuro-gun, Wakayama Prefecture, Japan. Commercial operations are expected to begin in the Spring of 2022. Once completed and commissioned, the plant will generate approximately 150,000,000 kWh of electricity annually. That yearly energy output will contribute to a reduction of approximately 900,000 tons of CO2 emissions for an electricity supply period of around 18 years.
Pacifico Energy has now commenced construction on 12 PV plants across Japan with a total generation capacity of 1,042 MW. Of those 12 sites, six have been completed and are now in commercial operation, representing a combined installed capacity of 540MW.
Last year, Pacifico Energy began work on a 102MW PV project in Ako, Hyogo Prefecture that is projected to be completed in Spring 2021. Like this 111MW installation, the Ako project is being developed on the site of a former golf course, Back in December, Pacifico Energy successfully completed the launch of its second solar investment fund, which will feature five Japanese solar power plants totaling over 216MWdc.
The launch of Pacifico’s second solar fund comes over two years since the company announced its first solar fund back in September 2017, which raised US$142 million from Japanese institutional investors. “Fund I” featured five Japanese solar installations totalling over 100MWdc and is currently outperforming its target returns.
While Pacifico continues to develop its extensive PV pipeline, the solar market in Japan is in line for some major chances in the coming months, as the country set new feed-in tariffs for the 2020 financial year — which will take effect in April.
The country has been preparing to graduate the market away from the premium-level incentives that started off at more than ¥40 per kWh (US$0.36) in 2013, back when the programme was introduced to spark the market following the Great East Japan Earthquake of 2011, which caused severe damage to the Fukushima Daiichi nuclear power station.