Global leaders in clean energy segment Trina Solar and GE Energy Financial Services (GE EFS) announced a partnership to invest in a 14MWdc utility-scale PV project in Ishinomaki, Miyagi Prefecture, Japan, where suffered severely from the 311 earthquake and tsunami in 2011.
The Japan government aims to increase the share of electricity generated from renewable resources to 20% by 2030. Such an ambitious goal, in addition to Japan’s relatively reliable policy and economic environment, has attracted a number of global companies to invest in Japan’s solar market. GE EFS has already invested in six solar PV project since 2014, and three of them have achieved commercial operation in 2016.
This time, GE EFS decided to partner with Trina Solar for the new Miyagi PV project.
"Trina Solar is an experienced global developer and we are proud to work with them to bring this exciting project in Miyagi, Japan to fruition and to continue to expand our footprint in Asia," said Sushil Verma, Managing Director and Head of Asia Pacific at GE Energy Financial Services.
Trina Solar will supply PV modules for the Miyagi project, which is planned to start construction at the end of April and is expected to reach commercial operation by June, 2017. The electricity generated from this facility will be sold to regional utility Tohoku Electric Power Co. under a 20-year feed-in tariff contract at the rate of JPY36.0 per kWh.
"We are delighted to kick-off this partnership with GE EFS, a top global investor in the energy sector. Their tremendous investment experience combined with our extensive resources in the solar industry will create a win-win in terms of project quality and investment value maximization," commented David You, President of the International PV System Business Unit (ISBU) at Trina Solar.
Trina Solar Japan Energy, a wholly-owned subsidiary of Trina Solar, has signed to develop the Miyagi project for engineering, procurement, and construction management.
Under terms of Trina Solar and GE EFS’s Membership Interest Purchase Agreement, GE EFS will hold an 85% equity interest in the project, acquired from Trina Solar. Both companies will make capital contributions to the project on a pro rata basis in accordance with their respective interests. Moreover, a management committee, consisting of two representatives appointed by each company, will be established to manage the day-to-day business of the project.
(Photo: Okayama PV plant in Japan invested by GE EFS.)