Oct 16 2014
Etrion Corporation ("Etrion" or the "Company"), a solar independent power producer, today announced the start of construction on its first 34 megawatts ("MW") in Japan jointly owned with Hitachi High-Technologies Corporation ("Hitachi High-Tech") (TSE: 8036), a subsidiary of Hitachi, Ltd. ("Hitachi").
Marco A. Northland, Etrion's Chief Executive Officer, commented: "We are pleased to begin construction on schedule for our first 34 MW in Japan with our partner, Hitachi High-Tech. We have now demonstrated our unique execution capability in the Japanese solar market -- from greenfield development through project finance and construction -- and we look forward to accelerating our growth in the months ahead. Etrion and Hitachi are committed to delivering shovel-ready or under-construction projects in Japan totaling 100 MW by 2015 and 300 MW by 2017."
Shizukuishi Solar Project (24.7 MW)
Shizukuishi is a 24.7 MW utility-scale solar photovoltaic ("PV") power plant under construction on one site in the Iwate Prefecture of Japan. Construction-related works began this month, and the solar project is expected to be operational by the end of 2016. The solar power plant is being built on 51 hectares of leased land, and the facility will connect through Tohoku Electric Power Co., Inc. ("Tohoku Electric Power utility"). The project has entered into a 20-year power purchase agreement ("PPA") with the Tohoku Electric Power utility to receive ¥40 per kilowatt-hour ("kWh") produced (approximately US$0.37 per kWh). Once operational, Shizukuishi is expected to produce approximately 25.6 gigawatt-hours ("GWh") of solar electricity per year.
Mito Solar Project (9.3 MW)
Mito is a 9.3 MW utility-scale solar PV power project including five sites under construction in the Ibaraki Prefecture of Japan. Construction began this month, and the solar project is expected to be operational by the end of 2015. The solar power plant is being built on 27 hectares of leased land, and the facility will connect through the Tokyo Electric Power Company ("TEPCO"). The project is expected to enter into a 20-year PPA by the end of 2014 with TEPCO to receive ¥40 per kWh produced (approximately US$0.37 per kWh). Once operational, Mito is expected to produce approximately 10.3 GWh of solar electricity per year.
The total project cost for both projects is being financed approximately 80% through project debt from Sumitomo Mitsui Trust Bank, Limited with an 18-year tenor. The first drawdown of the project loan for Shizukuishi was recently completed. The remaining approximate 20% equity portion for the projects is being funded by Etrion and Hitachi High-Tech based on their respective ownership interests in each project of approximately 87% and 13%.
The projects are both being built by Hitachi High-Tech using Hitachi's proven engineering, procurement and construction ("EPC") capabilities. Hitachi High-Tech will also provide the technology, including fixed-tilt solar panels manufactured by Canadian Solar and inverters made by Hitachi. Operations and maintenance ("O&M") services will be provided by Hitachi High-Tech through a long-term fixed-price agreement for each project.