SHANGHAI, July 25, 2012 /PRNewswire/ -- Since Japan formally implemented new Feed-in-Tariffs for the photovoltaic (PV) industry in July 2012, it has seen an overwhelming response and injection in the market. It is expected that with electricity prices of 42 Japanese Yen (approx. 3.36 Chinese Yuan) /kWh, internal rates of return of around 20% can be given to investors. This level of IRR has attracted and tempted many companies to invest in the PV industry either through development or through mergers and acquisition.
As a professional global PV developer, investor and IPP, Sky Solar finds itself in a strong position as the Japanese market strives forward due to years of hard work, commitment and preparation. Sky Solar is now in a position to seize this opportunity and has announced the successful development of several large solar power plants through its Japanese subsidiary, Sky Solar Japan. The large scale projects will be located in Mihomura-Ibarakiken and Uto-Kumamoto on Japan's third largest island of Kyushu partly due to the abundant solar irradiation found there. The near 2MW Uto-Kumamoto PV power plant is based on an area of 25,000 m2, and is expected to use over 8,000 modules with an annual capacity of 1,950,000 kWh. This project's EPC partner will be determined by the end of July with construction to begin in October with successful completion and connection by the end of December this year. All electricity produced will be sold to Kyushu Electric Power Company. The 2MW Mihomura-Ibarakiken project will be developed on leased private land with the EPC contract to be finalized by June. Construction will begin in August and grid connection will be accomplished by the end of December.
It is understood that this year Sky Solar plans to construct PV power stations in up to 20 areas of Japan. Each station will have an installed capacity of around 2MW and each EPC contract will be determined through a public tender. Sky Solar Group will invest 600 million Japanese Yen in each of these projects.
Step by Step, Respecting Market Rules
Sky Solar focuses on balancing resources in both existing and established markets, so as to tap potential up and coming markets around the world. Sky Solar Japan entered the Japanese market in 2007 to begin development and investment in Japanese PV projects. "In Japan, it's rather difficult to be recognized by an industry. I am glad that after years of effort and planning, we are now recognized in the industry due to the achievements we have made," said Rui Chen, Head of Sky Solar Japan. "Sky Solar's mission is to produce new energy power with a high level of safety, quality and with low costs through the tracking and objective analysis of collected data and by demonstrating this professionalism and our strengths within this industry in Japan."
In relation to the Japanese market, Mr. Weili Su, Founder and Chairman of Sky Solar added: "I was pleased to see the attitude and respect for operating within market rules. Sky Solar has a long-term plan for the development, investment and operation of PV power stations. By leveraging our extensive experience in the global and local PV rooftop market and large ground-mounted PV power projects, we are capable of providing high-quality power station services to the entire renewable energy industry. Our technology neutral stance and our role as a power plant developer can only help in establishing strong collaborative relationships with various business partners."
SOURCE Sky Solar