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Orix to invest $1.25 bn into new solar projects
- 12 years ago (2012-08-17)
- Junior Isles
Orix Corp. President Makoto Inoue has said that his firm plans to invest 100 billion yen ($1.25 billion) over three years to build solar power plants at dozens of locations across Japan with a total generating capacity of 400 MW.
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Orix intends to develop the solar power business into one of its main sources of revenue, Inoue said. They will also invest 30 billion yen ($378 million) over 1-3 years in construction and development of mega solar plants with a generating capacity of 100 MW.
The first step in Orix’s power generation venture will be to install solar panels on the factories and storehouses it loans from its business partners, according to Inoue.
Orix is considering raising funds from institutional investors, including corporate pensions, or through long-term loans, Inoue said.
Orix plans to use Japan’s feed-in-tariff to sell its renewable generation to utilities. Large-scale solar power generators can currently sell power for 42 yen per kWh for 20 years. Since this may be lowered in the future, Inoue said his firm will enter the solar business as early as possible.
Orix will unused land owned by local municipalities and businesses to build the solar power plants and already plans to construct a solar plant in Kagawa Prefecture.