Taiwan-based PV conductive paste maker Giga Solar Materials on March 3 signed with a few local banks for a 7-year syndicated loan of JPY3.5 billion (US$34.3 million) for constructing a ground-mounted PV power-generating station with an annual capacity of 17MWp in Fukushima Prefecture, northeastern Japan, according to the company.
Giga Solar obtained the project through its wholly owned Japan-based subsidiary, with Japan-based Tsuboi to undertake EPC (engineering, procurement, construction), the company noted. The syndicated loan will account for 70% of the planned investment of JPY5.0 billion, with the remaining 30% to come from equity funds, Giga Solar indicated.
With construction beginning in late October 2013 and to be completed at the end of 2014, the PV power-generating station will be on a power grid at an official feed-in tariff of JPY42/kWh in early 2015, Giga Solar said. PV modules used in the construction are to be supplied by Taiwan-based Apollo Solar Energy and solar cells for the PV modules will also be produced by a Taiwan-based maker, Giga Solar indicated. The investment will have an estimated return rate of 12% and take 7-8 years to recoup, Giga Solar pointed out.
In addition to the project, Giga Solar is negotiating investment in other PV power-generating stations in Japan and expects to sign contracts with a total installation capacity of 15-20MWp in 2014, the company indicated.
