Global solar power company Etrion and Hitachi High-Technologies has signed a project finance agreement with Sumitomo Mitsui Trust Bank for the construction of a 13.2MW Komatsu solar project in the Ishikawa Prefecture of Japan.
Construction of the solar photovoltaic (PV) plant is expected to begin in February next year and is anticipated to commence commercial operations by Q2, 2018.
Etrion's chief executive officer Marco Northland said: “I am delighted to announce the signing of the $33m project financing for our 13.2MW Komatsu project, our fourth utility-scale solar project in Japan.
“We will continue to deliver new solar projects through our unique partnership with Hitachi High-Tech in Japan, which is the market with the highest returns for Etrion.
“Once we close the previously announced sale of our Italian assets, we will be in a very strong financial position to further accelerate our growth in Japan.”
The new solar power plant will be built on a 30.5 hectare site and will connect through the Hokuriku Electric Power utility.
Once operational, Komatsu is expected to produce approximately 14.2 gigawatt-hours (GWh) of solar electricity annually, which is sufficient to power 4,000 households.
Etrion will own a 85.1% stake in the Komatsu project, while Hitachi High-Technologies will own the remaining 14.9% stake.
Around 83% of project costs will be financed through project debt from SuMi Trust with a tenor equal to the construction period plus 19 years of operations. The remaining 17% will be funded pro-rata by Etrion and Hitachi High-Technologies according to their respective equity interests.