[Kamei New Business News #4] Commencement of the Social Issue Solving Business "Hyakunen Solar Tohoku Project"

Kamei Corporation (Headquarters: Sendai City, Miyagi Prefecture, President: Akio Kamei, hereinafter referred to as "Kamei"), Mitsubishi UFJ Trust and Banking Corporation (Headquarters: Chiyoda-ku, Tokyo, President: Hiroshi Kubota, hereinafter referred to as "Mitsubishi UFJ Trust and Banking"), and the 77 Strategic Investment No. 2 Investment Limited Partnership (hereinafter referred to as "77 Capital"), operated by Shichito Capital Co., Ltd. (Headquarters: Sendai City, Miyagi Prefecture, President: Akira Konno), and Hiraso Energy Co., Ltd. (Headquarters: Bunkyo-ku, Tokyo, Representative Director: Min Li, hereinafter referred to as "Hiraso Energy") have entered into a silent partnership agreement with "Hyakunen Solar Tohoku LLC" (hereinafter referred to as "Hyakunen Solar Tohoku") to solve the issues of waste and abandonment surrounding solar power plants in the Tohoku area and to promote decarbonization through long-term stable operation. Hyakunen Solar Tohoku has also entered into a project finance agreement with The Bank of Kita-Nihon (Head Office: Morioka City, Iwate Prefecture, President: Kyoro Ishizuka, hereinafter referred to as "The Bank of Kita-Nihon").

1. Background and Objectives of the Business

The "Hyakunen Solar Tohoku Project" is a social issue-solving business that acquires and consolidates small and medium-sized solar power plants scattered throughout the Tohoku region, aiming for long-term stable operation beyond the Feed-in Tariff (FIT) period.

Many solar power plants in Japan rapidly proliferated after the start of the FIT system in 2012, and there are concerns about the abandonment of these plants after their 20-year FIT period expires. In particular, small and medium-sized solar power plants (under 1MW generation capacity), which account for about 90% of domestic solar power plants, are expected to see an increase in facilities that are not adequately maintained or repaired due to the aging of owners and rising maintenance costs. Furthermore, in the Tohoku region, challenges such as reduced power generation due to snow, damage to panels and mounting structures, and increased output curtailment require even more appropriate monitoring and repairs.

To address these issues, "Hyakunen Solar Tohoku" has been newly established to acquire and consolidate small and medium-sized solar power plants in the Tohoku region, aiming for long-term stable operation utilizing Hiraso Energy's strengths in "repowering technology" and "digital technology." Kamei, Mitsubishi UFJ Trust and Banking, 77 Capital, and Hiraso Energy will each enter into a silent partnership agreement. Furthermore, through project finance from the local financial institution, The Bank of Kita-Nihon, we will establish a financial foundation to support long-term stable operation, even after the FIT period ends, and promote this as a social issue-solving project in the Tohoku region in collaboration with regional finance.

【Scheme Diagram】

FAQ

Which companies and partnership entities are participating in the Hyakunen Solar Tohoku Project, and what are their respective headquarters locations and presidents?

The participants are Kamei Corporation (headquartered in Sendai City, Miyagi Prefecture, President Akio Kamei), Mitsubishi UFJ Trust and Banking Corporation (headquartered in Chiyoda-ku, Tokyo, President Hiroshi Kubota), 77 Strategic Investment No. 2 Investment Limited Partnership operated by Shichito Capital Co., Ltd. (headquartered in Sendai City, Miyagi Prefecture, President Akira Konno), Hiraso Energy Co., Ltd. (headquartered in Bunkyo-ku, Tokyo, Representative Director Min Li), Hyakunen Solar Tohoku LLC (the venture itself), and The Bank of Kita‑Nihon (head office in Morioka City, Iwate Prefecture, President Kyoro Ishizuka).

When did Japan's Feed-in Tariff (FIT) system for solar power begin, and what is the standard duration after which many solar plants face abandonment concerns?

Japan's Feed-in Tariff system started in 2012, establishing a standard 20‑year period after which the FIT subsidy ends, leading to concerns that many solar power plants may be abandoned once that 20‑year term expires.

What is the main purpose of the Hyakunen Solar Tohoku Project in terms of acquiring and consolidating solar power plants, and how does it aim to operate beyond the FIT period?

The project's primary purpose is to acquire and consolidate small and medium‑sized solar power plants scattered across the Tohoku region, ensuring their long‑term stable operation beyond the 20‑year FIT period by managing them as a unified portfolio.

Which bank entered into a project finance agreement with Hyakunen Solar Tohoku, and where is this bank's head office located?

The Bank of Kita‑Nihon entered into the project finance agreement with Hyakunen Solar Tohoku, and its head office is situated in Morioka City, Iwate Prefecture.

What proportion of solar power plants in the Tohoku region are small or medium‑sized under 1 MW, according to the article, and why does this matter for the project's goals?

According to the article, about 9 percent of solar power plants in the Tohoku region have a generation capacity under 1 MW, and this matters because these smaller installations are especially vulnerable to abandonment after the FIT period, which the Hyakunen Solar Tohoku Project aims to prevent through consolidation and long‑term management.

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