GE Energy Financial Services and Pacifico Energy Partner on a Third Solar Transaction in Japan

GE Energy Financial Services and Virginia Solar Group subsidiary Pacifico Energy have partnered for a third time to construct a 96 MW solar power project in Japan.

GE Energy Financial Services and Virginia Solar Group will jointly invest equity in the plant, with GE Energy Financial Services' commitment totaling ¥7.5 billion (US$62.7 million). Construction of the plant is underway in Hosoe on Kyushu Island, in the prefecture of Miyazaki.

A ¥35 billion (US$292.4 million) term loan facility with a 22-year tenor, led by The Bank of Tokyo Mitsubishi UFJ, Ltd. as the sole and exclusive mandated lead arranger, was provided on a non–recourse project finance basis with a syndicate of 12 Japanese financial institutions. Additional transaction details have not been disclosed.

Pacifico Energy is the project developer managing construction and operations of Hosoe, which is being built on 140 hectares of land that was originally intended for a golf course. Once complete, it will be the largest solar power plant on Kyushu Island and consist of approximately 300,000 photovoltaic modules supplied by Trina Solar. Toyo Engineering Corporation is the construction company on the project, and Asahi Dengyo is providing operations and maintenance services. In addition to capital, GE is supplying the project with 50 units of 1.26-megawatt Brilliant solar inverters.

Hosoe is expected to begin commercial operations in the spring of 2018 and will sell its power to Kyushu Electric Power Company under a 20-year power purchase agreement (PPA).

By 2020, Japan aims to have 20% of its energy generated from renewable power sources, a goal which is supported by the country's regulatory policies and feed-in tariff.