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Case of Buying Operating Solar Plants in Nagano (page 4)

Some agreements such as with local community, landlords not in documents

2019/05/02 17:38
Shinichi Kato, Nikkei BP Intelligence Group, CleanTech Labo
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Benefits from O&M company remaining unchanged

It was beneficial for the landlords and the local areas that Next Energy continued operation and maintenance (O&M) services as before. Next Energy negotiated and coordinated agreements with landlords and the local areas when the power plant was developed.

Next Energy's familiarity with these circumstances and continuing to operate and maintain the plants leads to a sense of security since it would be less likely that agreements, common understandings or such would be broken. It would also be easier for EnBio HD to take over the operation while understanding and respecting the agreements with landlords and the local community.

For instance, how does each power plant accommodate local customs and rules? The power plant in Ina City has a lot of rules such as the area that the power plant side weeds and efforts to prevent cut grass from falling into and flowing down the nearby canal when weeding the site. It is also reportedly necessary to consider managing the plant in collaboration with the local community, weeding both around and inside the power plant almost at the same time to improve the landscape, for example (Fig. 6).

Fig. 6: Weeded in accordance with agreement with landlords, local conditions (source: EnBio HD)

In Chino City, cutting trees larger than a certain diameter is regulated by a municipal act. At the plant in Chino city, there are some areas where trees grow like weeds. Especially in those areas, EnBio HD cuts the trees before they have grown to the size regulated by the municipal act (Fig. 7).

Fig. 7: Area where trees easily grow (source: Nikkei BP)

According to EnBio HD, it also needs to confirm in advance many other important matters, which are not covered in due diligence and monthly reports, such as participation in local activities, membership fee for the neighborhood association, landlord successions, continuation of the power generation business after 20 years and landlords' understanding.

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