GE Energy Financial Services and Pattern Energy Group have entered into an agreement with Green Power Investment (GPI), to invest in a 13.6 MW photovoltaic solar project located in Japan's prefecture of Shimane.
GE Energy Financial Services and Pattern Development will each own 45% of the project and GPI will retain a 10% ownership interest. GPI will manage construction and operations of the plant, which is located in Hamada-Shi, a mountainous area off the Sea of Japan. The transaction was closed in June 2015 and financial details were not disclosed.
Construction on the Kanagi solar project is underway and the plant is expected to reach commercial operation in February 2016. Kyocera Solar Corporation, a Japanese subsidiary of Kyoto-based Kyocera Corporation, is providing the photovoltaic solar panels. Schneider Electric is supplying the project's inverters. Kyocera Communication Systems Co. will provide ongoing operations and maintenance services.
Kanagi will sell its power to Chugoku Electric Power Company through a 20-year power purchase agreement under the Japanese feed-in tariff regime. These tariffs help attract investments in renewable energy in Japan where 20 percent of its power is expected to be generated from renewable sources by 2030.
Toshio Hori, President of GPI, stated:
"GPI is pleased with the progress of construction on the Kanagi project and excited with the prospect of reaching commercial operations in early 2016. We welcome the investment by Pattern Development, one of our key shareholders and GE Energy Financial Services. This project marks another step towards Japan's energy independence."