Kyocera Starts Operation of 70MW Solar Power Plant, the Largest in Japan

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The Kagoshima Nanatsujima Mega Solar Power Plant went online on November 1 and is being operated by a special purpose company established by Kyocera and six other companies to sell the electricity to a local utility under Japan’s feed-in-tariff (FIT) program.

An inauguration ceremony was held on November 4, with the attendance of company representatives and local governments to commemorate the launch of the country’s largest utility-scale solar power plant*1.

Expectations and interest in solar energy have heightened to a new level in Japan with the need to resolve power supply issues resulting from the Great East Japan Earthquake of March 2011. To further promote the use of renewable energy, the Japanese government launched a restructured FIT program in July 2012, which stipulates that local utilities are required to purchase 100% of the power generated from solar installations of more than 10 kilowatts (kW) for a period of 20 years.

Exploring a new business model for utility-scale solar power generation, Kagoshima Mega Solar Power Corporation was established by Kyocera and six other companies in July 2012. Under a financing plan devised by Mizuho Corporate Bank, the new company was tasked to develop and operate the 70MW solar power plant on land owned by IHI Corporation — with the power generated to be purchased by Kyushu Electric Power Co., Inc. based on the FIT program. As the largest shareholder of the new company, the Kyocera Group was responsible for the supply of solar modules as well as part of the construction, and will also undertake maintenance of the system with Kyudenko Corporation.

Additionally, a tour facility has been built adjacent to the 70MW plant — which is open to the public — featuring a circular viewing room where visitors can observe the 290,000 solar panels from an elevated vantage point and enjoy the view of the ocean bay and grand Sakurajima volcano in the background. Display zones for visitors such as students and tourists provide information about environmental issues and the science behind photovoltaic energy generation. By dedicating this facility, all parties involved hope to foster a deeper understanding of renewable energy and further facilitate a low-carbon society.

Solar Power Plant Overview

Name Kagoshima Nanatsujima Mega Solar Power Plant
Location 2 Nanatsujima, Kagoshima City, Kagoshima Prefecture, Japan
Area 1,270,000m2 (roughly the same area as 27 baseball stadiums)
Annual output Approx. 78,800MWh (projected)
Electricity generated will provide the equivalent power for roughly 22,000 average households*2, and will help to offset roughly 25,000 tons of CO2 per year*3.
Construction timeline Start of construction: September 2012
Completion: October 2013
Total Investment Approx. 27 billion yen (approx. 275.5 million U.S. dollars*4)

Company Overview

Company name Kagoshima Mega Solar Power Corporation
Representative director President and Representative Director: Nobuo Kitamura (also serves as Senior Executive Officer of Kyocera Corporation)
Established July 10, 2012
Capital Approx. 4.3 billion yen (approx. 44 million U.S. dollars)
Investing companies Kyocera Corporation; KDDI Corporation; IHI Corporation; Kyudenko Corporation; Kagoshima Bank, Ltd.; Bank of Kyoto, Ltd.; Takenaka Corporation
Business outline To sell power produced from 70MW solar power plant to local utility company (Kyushu Electric Power Co., Inc.). Power to be purchased for a period of 20 years starting from commencement of power supply.

Role of Participating Companies

Company Operation Kyocera Corporation
Construction Kyocera Solar Corporation; Kyudenko Corporation; Takenaka Corporation
Operational maintenance Kyocera Solar Corporation; Kyudenko Corporation
Land leasing IHI Corporation
Project finance Mizuho Corporate Bank

*1 Largest operating solar power plant in Japan. Research by Kyocera (as of November 1, 2013).
*2 Based on an average use of 3,600kWh per household. Source: Federation of Electric Power Companies of Japan
*3 Based on calculations derived from standards created by JPEA.
*4 For the reader’s convenience; based on an exchange rate of JPY98 = USD1 (as of November 1, 2013).


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