Jun 9, 2014 - US firm GE Energy Financial Services, part of General Electric (NYSE:GE), said today it had invested in the 32-MW Kumenan solar photovoltaic (PV) project in Japan’s Okayama prefecture.
The move corresponds to the energy investment firm's plan to pour more than USD 1 billion (EUR 735m) a year into renewable energy projects on a global basis.
The exact value of the the transaction was not disclosed. The GE unit said that the Kumenan scheme is backed by a JPY-11-billion (USD 107.4m/EUR 78.9m) loan from The Bank of Tokyo-Mitsubishi UFJ and The Chugoku Bank Ltd (TYO:8382).
The project owner is Pacifico Energy KK, a subsidiary of Virginia Solar Group, while Toyo Engineering Corp (TYO:6330) is building the park. The PV panels were supplied by China’s Yingli Green Energy Holding Co Ltd (NYSE:YGE).
The Kumenan solar park is seen to start commercial operations in the first quarter of 2016. It is expected to sell its output to a regional utility under a 20-year power purchase agreement (PPA), which first needs to be approved by Japan's Ministry of Economy, Trade and Industry.
On a related matter, Pacifico Energy plans to begin work on four solar projects with a combined capacity of 200 MW this year, according to the press release.
(USD 1.0 = EUR 0.735)
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