Kyoto, July 31, 2012 – Kyocera Corp., along with six other companies, completed capital investment procedures for the establishment of Kagoshima Mega Solar Power Corp., a new company that will be tasked with operating a 70 MW solar power plant in southern Japan. The utility-scale solar power plant will become the largest in Japan.
The new company will develop and operate the previously announced 70 MW solar power plant in Kagoshima City on land owned by IHI Corp. – with the power generated to be purchased by Kyushu Electric Power Co., Inc. under the guidelines of the new feed-in tariff (FIT) program, which was implemented on July 1 in Japan.
The total project cost is estimated at about $ 345 million, with seven investment companies involved (including Kyocera), and Mizuho Corporate Bank, Ltd. set to devise a financing plan for the project. Construction is set to commence in September of this year, with plans for completion by fall of 2013.
The Kyocera Group will be responsible for the supply the of the solar modules and part of the construction and maintenance of the system. Kyocera is the largest shareholder in the establishment of the new company.
Expectations and interest in solar energy have heightened to a new level in Japan with the need to resolve power supply issues caused by the effects of the Great East Japan Earthquake, and the start of a revamped FIT program which stipulates that solar installations producing more than 10 kW of solar energy be subsidized with a feed-in tariff of $0.53 per kWh for a period of 20 years. Through the start of this new solar power project Kyocera aims to proactively tackle environmental problems by promoting the use of renewable energy.