Tamagawa Holdings to build 5.5-MW solar park in Japan

Nov 18, 2014 - Japanese firm Tamagawa Holdings Co Ltd (TYO:6838) said today it intends to build a 5.5-MW solar park on the southern Japanese island of Kyushu.

The company, which is engaged in electronic and communication equipment manufacturing and also develops solar projects, will install the facility in Nagasaki prefecture. It has already secured a building permit from the Nagasaki government, it said.

The photovoltaic (PV) plant is expected to be put on stream by March 2016, generating about 6.8 million kWh of electricity in the first year of operation. Its output will be sold to domestic utility Kyushu Electric Power (TYO:9508) under a 20-year power purchase agreement at JPY 36 (USD 0.31) per kWh.

Tamagawa Holdings expects to generate power sales of JPY 250 million per year from the plant.

In the past few years, Japan turned into a hot destination for PV projects after it launched attractive renewable power feed-in tariffs (FiTs) in July 2012. A number of utilities in the country, however, were recently forced to limit or even hold off grid connection permitting for new solar capacity due to the huge levels of deployment.

(JPY 100 = USD 0.857)

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