Etrion announces start of construction on 34 MW plant in Japan

GENEVA, SWITZERLAND: Etrion Corp. announced the start of construction on its first 34 megawatts in Japan jointly owned with Hitachi High-Technologies Corp., a subsidiary of Hitachi Ltd.

Marco A. Northland, Etrion’s CEO, 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 is a 24.7 MW utility-scale solar 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. The project has entered into a 20-year power purchase agreement with the Tohoku Electric Power utility to receive ¥40 per kilowatt-hour produced (approximately $0.37 per kWh). Once operational, Shizukuishi is expected to produce
approximately 25.6 gigawatt-hours of solar electricity per year.

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 Co.

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 $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 Ltd with an 18-year tenor. The first drawdown of the project loan for Shizukuishi was recently completed. The remaining approximate 20 percent 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 percent and 13 percent.