The Toho Bank Ltd and Mizuho Bank Ltd structured a loan for Fukushima Soden GK (Fukushima City) to build power transmission lines, etc.
Development Bank of Japan Inc (DBJ) also structured a subordinated loan for the same purpose. The amounts of the loans were not disclosed. This was announced Nov 11, 2019.
As one of the measures to recover from the Great East Japan Earthquake, Fukushima Prefecture is promoting "Fukushima New Energy Society Vision," which is comprised mainly of (1) the expansion of the introduction of renewable energy, (2) model project for realizing a hydrogen-powered society and (3) establishment of a smart community.
Based on the vision, Fukushima Soden built and is operating power transmission lines with a total length of 80km for connecting renewable energy-based power generation facilities and power grids of general power transmission/distribution companies.
Fukushima Soden will newly build power networks in the Abukuma mountainous district and a coastal area of Fukushima Prefecture to transfer electricity generated with, for example, wind and solar power generation facilities to TEPCO Power Grid Inc (Chiyoda-ku, Tokyo). And the power is then transmitted to the service area of Tokyo Electric Power Company Holdings Inc (TEPCO).
More than 200MW of solar electricity is scheduled to be transmitted to the service area via the power networks, from wind power plants being planned in the the Abukuma mountainous district (total output: about 650MW), two mega solar plants being built in Sakai District of Namie-machi (town) (total output: 60MW), three mega solar plants being built in Odaka District of Minamisoma City (total output: 114MW), etc.
In the power transmission line project, the establishment of power transmission lines is being promoted in parallel (conjunction) with the development of each renewable energy-based power generation project. This time, the three banks structured loans that enable to flexibly raise capital for paying construction cost, etc in the aim of financially supporting the project. The loans were structured Sept 27, 2019.
As a local bank in Fukushima Prefecture, the Toho Bank has been actively supporting the commercialization of renewable energy-based power generation and fund raising for it, considering renewable energy as an important field. With "Fukushima Prefecture Renewable Energy Promotion Vision," Fukushima Prefecture aims to meet 100% of the energy demand in the prefecture with renewable energy by about 2040.