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Solar Revenue From Prefecture-financed Plant Expected to Benefit Locals (page 3)

Aiming to return 900 million yen in revenue to local community

2013/10/29 11:47
Kenji Kaneko, Nikkei BP CleanTech Institute
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Total of 900 million yen returns to local community expected for next 20 years

Returns will be distributed as follows: 76.8% to Hiroshima Prefecture and the remaining 23.2% to ESS. The dividend to Hiroshima Prefecture is larger than its capital contribution in the LLP. Hiroshima Prefecture is planning to return the expected revenue of about ¥900 million from the 6.6MW solar power plants to the local community over the next 20 years. The returns would be separated from the general accounting of the prefecture and independently spent for energy-saving and other activities of prefectural citizens.

"As more solar power plants are built under the feed-in tariff (FIT) scheme, the power rate would rise due to the government-imposed charge," Okada said. "Our goal is to keep the electric bill from rising by facilitating our energy-saving efforts using returns from the solar power plants."

Nevertheless, the solar power plants have to continue to generate stable revenues for 20 years to realize the goal of returning revenues to the local community. The fact is, however, at the current time, there are no experts or engineers for large-scale solar power plants in the prefecture, which has taken the initiative in the power generation business. The poorer the related knowledge is, the larger the business risk grows.

In a bid to lower such risk, Hiroshima Prefecture requested the ESS of the Chugoku Electric Power Group to participate in financing the LLP. The ESS is Shobara Solar Power Plant’s EPC (engineering, procurement and construction) contractor that acts as a solar power generation system and electric facilities expert and a member of the electric power plant operator at the same time.

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