Boston, MA 06/10/2014 (wallstreetpr) – Business conglomerate General Electric Company (NYSE:GE)’s subsidiary, GE Energy Financial Services Inc. will make investments in southwest Japan for a solar power project. It is part of their strategy to invest in renewable energy projects globally by expanding its footprints.
Solar Power Project
The company disclosed setting up of a 32 MW solar photovoltaic power unit, known as Kumenan, with Pacifico Energy, the project developer, which is also engaged in operations and constructions, in Japan’s Okayama prefecture. The solar project is part of General Electric Company (NYSE:GE)’s intention of investing more than $1 billion a year in renewable energy projects around the world to extend its energy footprints.
The commercial operations are predicted to start in the first quarter of 2016. The power produced from the unit will be sold to a regional utility by a two-decade power purchase deal at a fixed rate along with necessary approvals from the ministries concerned in Japan.
General Electric’s subsidiary said that the financing has been arranged on a non-recourse project funding basis helped by The Chugoku Bank Ltd. and The Bank of Tokyo – Mitsubishi UFJ’s JPY11 billion loans.
The solar power project also supports Japan’s renewable energy targets besides setting the stage for the General Electric Company (NYSE:GE) future investments. The country has set an ambitious aim of achieving 20% of its energy needs from renewable sources by the end of 2030 by promoting a feed-in tariff to attract more investments.
GE’s Investment In Solar Project
General Electric’s subsidiary has committed investments of $1.8 billion through equity and debt in over one Giga watt of solar power projects globally. The company also plans to fund Japan’s biggest solar project, in Setouchi, thus allowing it to expand its footprints in the region.
Commenting on the project, GE Energy Financial Services’ president and CEO David Nason said that its investment in Kumenan allows them to venture into new markets globally despite a risk-return profile. Pacifico Energy believes that it needed support from big corporate like Ge General Electric Company (NYSE:GE) to allow them to execute projects on a time-bound basis by extending technical know-how as well as flexible financial structures.
