GE Energy Financial Services partners with Pacifico Energy to construct second joint solar project in Japan
GE Energy Financial Services – GE’s energy investing business – is continuing its expansion into the Japanese renewable energy power market, completing its second solar project financing transaction with Pacifico Energy, a Tokyo-based utility-scale solar project developer and subsidiary of Virginia Solar Group.
The transaction, which is part of the company’s plan to invest over USD $1 billion annually in renewable energy projects worldwide, will be directed towards financing the Mimasaka Musashi plant, a 42MW solar PV project in the prefecture of Okayama, Japan, which is under construction.
According to GE, the Bank of Tokyo–Mitsubishi UFJ and Chugoku Bank also supported the deal with a JPY ¥13 billion credit facility.
Mimasaka is located on the site of a former golf course and is expected to reach commercial operations in the third quarter of 2016. Upon completion, the plant will sell its power to Chugoku Electric through a 20-year power purchase agreement at a fixed tariff rate.
Toyo Engineering Corporation is the construction company on the project, while the photovoltaic panels and inverters are supplied by Yingli Green Energy and TMEIC, a Toshiba and Mitsubishi joint venture. The entire operation is overseen by Pacifico Energy.
Japan’s regulatory policies are designed to support the country’s efforts to diversify its power mix following the nuclear disaster in Fukushima which occurred in March 2011.
Sushil Verma, a Managing Director and Japan business leader at GE Energy Financial Services said the company was determined to help Japan achieve its green energy target.
“We are committed to building a long-term relationship with Pacifico Energy and helping Japan meet its renewable energy targets,” he said.
Nate Franklin, partner at Virginia Solar Group said the partnership with GE would help Mimasaka establish itself as the world’s greenest city.
“We are excited about partnering again with GE on a second project. This investment helps Mimasaka achieve its goal of transforming itself into a zero emission city,” said Mr Franklin.
Mimasaka Musashi is the third Japan solar project GE Energy Financial Services has invested in this year. In June, the company invested in Pacifico Energy’s Kumenan solar project, and then in September helped finance Japan’s largest solar project, which is being built in Setouchi City.