Thin-film PV module manufacturer Solar Frontier has reached a basic agreement with the Development Bank of Japan (DBJ) for the establishment of a joint investment company that will provide funding for utility-scale solar power plants.
The joint investment company will begin operating in February and will initially target investments in projects totaling 100 MW annually. The company will become an independent power producer and invest in utility-scale solar projects throughout Japan. Solar Frontier will contribute 60% of the capital, while DBJ will contribute the remaining 40%.
In addition to traditional large-scale projects, the investment company will pursue projects that have a suitable land plot to develop but have not progressed in terms of finding power producers or financing sources, as well as those less than 2 MW, which are generally difficult to source project finance.