Solar Frontier, Development Bank of Japan Announce Joint Investment Company
Clean Edge News
Solar Frontier recently announced that it has reached a basic agreement with the Development Bank of Japan (DBJ) for the establishment of a joint investment company that will provide funding for utility-scale solar power plants.
The joint investment company will begin operating in February 2013 and will initially target investments in projects totaling 100 megawatts a year. The joint investment company will become an independent power producer (IPP) and will invest in utility-scale solar projects throughout Japan. Solar Frontier will contribute 60% of the capital while DBJ will contribute the remaining 40%.
The company will not only invest in large-scale projects, but a wide range of projects, including those that have a suitable land plot to develop but have not progressed in terms of finding power producers or financing sources, as well as those less than 2 megawatts, which are generally difficult to source project finance.
By providing integrated processes along the value chain from financing to construction and IPP operations, the company expects to be able to respond speedily to the demand for utility-scale projects in the Japanese market. The company also says it will be more competitive in the downstream business by using a new business model to sell already up-and-running projects to IPPs and investors.