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Canadian Solar Sells 56MW Solar Plant in Yamaguchi to South Korean Firm

LG CNS' EPC services, TMEIC's PV inverter

2020/02/21 20:46
Shinichi Kato, Nikkei BP Intelligence Group, CleanTech Labo
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On the site of a former 27-hole golf course, 173,000 solar panels of Canadian Solar were set up. (source: Canadian Solar)

Canadian Solar Japan KK (Shinjyuku-ku, Tokyo) announced Feb 21, 2020, that it has sold a solar power plant with an output of about 56.3MW in operation in Yamaguchi Prefecture, Japan.

Thus far, the Canadian Solar group has sold most of its mega (large-scale) solar power plants to Canadian Solar Infrastructure Investment Fund Corp (Shinjyuku-ku, Tokyo).

On the other hand, the 56.3MW mega solar plant, "Yamaguchi Shinmine Power Plant," was sold to Hana Financial Group, a financial group based in South Korea. Hana Financial Investment Co Ltd, which is affiliated with the financial group, purchased the plant for about ¥22.3 billion.

According to Canadian Solar, the sale of the plant was originally scheduled to be completed in the fourth quarter of 2019. However, it took time to comply with regulations and complete the procedures of the contract, delaying the completion.

Canadian Solar concluded a five-year profit-sharing contract. So, if the amount of power generation is larger than a standard value, the surplus revenue will be additional revenue of Canadian Solar.

More than 18 months have passed since Yamaguchi Shinmine Power Plant started to sell electricity in May 2018. The plant is selling electricity to The Chugoku Electric Power Co Inc at a price of ¥36/kWh based on the feed-in tariff (FIT) scheme. It is expected to generate 66,000MWh of electricity per year.

LG CNS Japan Co Ltd (Chuo-ku, Tokyo), a Japanese subsidiary of LG CNS Co Ltd, provided EPC (engineering, procurement and construction) services for the plant. Canadian Solar will continue to be responsible for O&M (operation and maintenance) services after the sale of the plant.

The PV inverter employed for the plant is a product of Toshiba Mitsubishi-Electric Industrial Systems Corp (TMEIC).