Toyo Engineering and GE close financing for 231 MW solar power project

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Toyo Engineering and GE close financing for 231 MW solar power project

Kuni Umi Asset Management, GE Energy Financial Services and Toyo Engineering Corporation have invested in Japan's largest solar power project, a 231 MW facility to be built in Setouchi City, Okayama Prefecture, via SPC and representative member Setouchi Future Creations.

GE Energy Financial Services holds a 60% stake in the Setouchi Kirei Solar Power Plant, one of the largest single equity investments in renewable energy in Japan. Toyo Engineering holds 30% of the project and Kuni Umi Asset Management holds 10%.

To support the approximately US$1.1 billion project, the three owners have raised more debt than any prior renewable energy project in the country. An US$867 million loan, led by Bank of Tokyo–Mitsubishi UFJ, Mizuho Bank and Sumitomo Mitsui Banking Corporation, was provided on a non–recourse project finance basis by a syndicate of Japanese banks, including local financial institutions.

Toyo Engineering and Shimizu Corporation will build the solar photovoltaic plant beginning in November on 260 hectares (1,210 acres) of city land on the former Kinkai salt field. The project is expected to reach commercial operations in the second quarter of 2019 and sell its power to Chugoku Electric Power Company under a 20–year power purchase agreement that uses Japan's renewable energy feed–in–tariff regime. Chudenko Corporation will provide operations and maintenance services.

Sushil Verma Managing Director and Japan Business leader at GE Energy Financial Services commented

Japan's favorable regulatory policies make solar power attractive and diversify the country's power generation sources. For us, the Kuni Umi project expands our international and renewable energy footprints, which already include investment commitments of $1.8 billion in equity and debt in more than one gigawatt of solar power projects worldwide.

In addition to capital, GE will supply some of the inverters, marking the debut in Japan of the GE 1 MW Brilliance Solar Inverter, which eliminates the need for an intermediate transformer, resulting in higher conversion efficiency and superior grid performance.

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