GE Energy Financial Services continued its expansion into the Japanese renewable energy power market, completing its second solar project financing transaction with Pacifico Energy, a Tokyo-based utility-scale solar project developer and subsidiary of Virginia Solar Group.
GE Energy Financial Services invested alongside Virginia Solar Group in Mimasaka Musashi, a 42-megawatt (DC) photovoltaic solar power project under construction in the prefecture of Okayama. Financing for the project was completed on a non–recourse project finance basis and was supported by a ¥13 billion ($109 million USD) credit facility from the Bank of Tokyo–Mitsubishi UFJ and Chugoku Bank. Additional financial details were not disclosed.
Located on the site of a former golf course, Mimasaka is expected to reach commercial operations in the third quarter of 2016 and sell its power to Chugoku Electric through a 20-year power purchase agreement at a fixed tariff rate.
Sushil Verma, a managing director and Japan business leader at GE Energy Financial Services said, “We are committed to building a long-term relationship with Pacifico Energy and helping Japan meet its renewable energy targets.”
GE Energy Financial Services has made equity and debt investment commitments of USD $1.8 billion in more than one gigawatt of solar power projects worldwide, and plans to continue to invest over USD $1 billion annually. Mimasaka Musashi is the third Japan solar project GE Energy Financial Services has invested in this year. The company invested in Pacifico Energy’s Kumenan solar project in June, and in September GE helped finance Japan’s largest solar project, which is being built in Setouchi City.