Pacifico Energy K.K. (Head Office: Minato, Tokyo; Representative Director: Hiroki Matsuo) is pleased to announce that we have completed a financial close on the Banshu solar power project today. This time as well, we were able to raise funds by earning trust in the project of several Japanese corporations. Construction will now commence, spanning over the next two years.
This Banshu solar power plant is our 14th in-house development project and the third one in Hyogo prefecture. With an electricity selling price of 15.37 yen per kilowatt hour, the lowest thus far, it has reached parity with the retail price of electricity for commercial use. This is a special moment for me in my long years working for the expansion of the renewable energy sector– an important step towards our goal of achieving renewable energy grit parity.
In 2018, when we decided to implement this project, the costs at that time made it far from economical viable. In short, it took immense courage to commence business development understanding the risk that the funds invested would not return. From this point, our work to improve planning, procurement, and construction methods and time spent on construction, combined with seeking efficient capital and financing, has brought us to a stage where business operation is finally feasible. I would like to appreciate very much to everyone involved in this project.
Hyogo Prefecture, where this project is located, is one of the prefectures that maintains the strictest standards and inspections of solar business in order to ensure the safety and security of local residents. It was necessary for this project to pass inspections based on three separate ordinations. In order to pass these strict inspections, we presented safety plans and explanations, and over the course of two years, we have received consent and permission from the prefectural governor as well as relevant communities.
Nonetheless, unless the construction is actually completed without any hindrances, we cannot claim it as a truly cheap power source. It is our mission to complete the construction safely with consideration for the local people and the natural environment.
Leveraging our accumulated know-how and network, we are committed to moving forward the challenge to reaching grid parity for renewable energy in Japan, the development of a power source that can coexist and be rooted within local communities, and the responsible operation of a solar energy plant as a long-term stable power supply which will eventually become a main power source.
December 18, 2020
President and CEO
Pacifico Energy K.K.