Independent power producer Etrion Corp. and Hitachi High Technologies Corp. are planning to build two utility-scale solar projects in Japan with a total capacity of 34 MW, with financing arranged by Sumitomo Mitsui Trust Bank Ltd. (SuMi Trust).
The total project cost for both projects will be financed approximately 80% through project debt from SuMi Trust with an 18-year tenor. The remaining equity portion will be funded by Etrion and Hitachi High Tech based on their respective ownership interests of approximately 87% and 13%.
Hitachi High Tech will provide engineering, procurement and construction services for the projects, which will incorporate parent company Hitachi's power conditioning systems and amorphous transformers. Operations and maintenance services will be provided by Hitachi High-Tech through a long-term fixed-price agreement for each project.
The Shizukuishi project is a 24.7 MW photovoltaic power plant to be built in the Iwate Prefecture. Construction is scheduled to begin in October with completion slated for the end of 2016. Once operational, Shizukuishi is expected to produce approximately 25.6 GWh of electricity per year. The facility will connect through the Tohoku Electric Power Co. Inc.
The Mito project is a 9.3 MW PV power plant to be built in the Ibaraki Prefecture of Japan. Construction on the facility is expected to begin this month and be completed by the end of 2015. Once operational, Mito is expected to produce approximately 10.3 GWh of electricity per year. The facility will connect through the Tokyo Electric Power Co.