GE Energy Financial Services has made an investment of $1.8 million in equity towards the 32 MW solar photovoltaic power project in Okayama in Japan.
GE Energy Financial Services will be providing the solar project under a non-recourse project finance contract. The project is also supported by a $107 million loan from the Bank of Tokyo-Mistubishi UFG and the Choguku Bank.
The Kumenan power project, developed by Pacifico Energy, is expected to become fully functional by the first quarter of 2016. First phase of construction work is already under progress.
The company is planning to sign an agreement to sell power to a local utility on a fixed rate for 20 years after approval from Economy and Trade and Industry Ministry of Japan.
David Nason, president, GE Financial Services said, “Kumenan project helps Japan to meet its renewable energy targets and sets the stage for future investment by the G. E unit.”
Japan has set a goal of becoming 20 percent power efficient from renewable energy resources by 2030. To attract investments in renewable energy projects Japan’s Ministry has already announced favourable discount in power tariff rates.
The business unit also intends to finance Japan’s largest solar project in Setouchi, expanding its foothold in the region.