Daiwa House Industry Co Ltd has been leading the industry in the wind power and mega (large-scale) solar power fields since before the start of the feed-in tariff (FIT) scheme. Taking advantage of its experience in these fields, the company swiftly established a system to handle mega solar EPC (engineering, procurement and construction) services, power generation business and O&M (operation and maintenance) services inside the group, responding to the start of the FIT scheme, and has accumulated a proven track record.
We interviewed managing director Takashi Hama and asked about the direction of the solar power business in the future when the tariff will decline.
'Net zero energy company' realized
Q: Four years have passed since the start of the feed-in tariff (FIT) scheme in July 2012. Could you tell us about the achievements of Daiwa House Industry in the renewable energy businesses including the solar power business?
Hama: In the Daiwa House Industry Group, Daiwa House Industry is engaged in EPC services for renewable energy power generation facilities including mega solar facilities while the power generation business and EPC services for renewable energy power generation facilities are handled by Daiwa Energy Co Ltd of Osaka City. In respect to renewable power generation, we have expertise in wind power and hydro power generation, as well as solar power generation.
In our renewable energy power generation business, 177 facilities with a total output of about 180MW were in operation as of June 2016. If the facilities that are under construction are included, the number of facilities will be 196, with a total output of 247MW, of which 25MW is from wind power facilities; the majority of the power is generated by solar power facilities.
About 168 million kWh of power is generated per year by the currently operated renewable energy facilities with an output of 180MW. Daiwa House Industry consumes about 103.38 million kWh of power annually, which translates as us having already realized becoming a "net zero energy company."
Q: What is the transition of the EPC services for solar power generation facilities after the start of the FIT scheme?
Hama: The accumulated total up to fiscal 2015 is 505MW: 38MW in fiscal 2012, 75MW in fiscal 2013, 183MW in fiscal 2014 and 208MW in fiscal 2015. And 200MW or more is expected for fiscal 2016.
Q: It is generally believed that the solar panel shipment volume in Japan peaked in fiscal 2015, and the volume will decline gradually in the following years. What are your prospects for orders in and after fiscal 2017?
Hama: We aim for a level higher than this fiscal year for fiscal 2017. It is true that there are pessimistic opinions because of the decline in the tariff, but we think this is a good opportunity for us. We have confidence in cost competitiveness and the quality of installation work. If there are companies that retreat from the industry by looking pessimistically at the solar power market, players in the market will decrease.