Launch of the '100-Year Solar Tohoku Project': A Business Model for Solving Social Issues

Kamei Corporation (Headquarters: Sendai, Miyagi; President: Akio Kamei; hereafter 'Kamei'), Mitsubishi UFJ Trust and Banking Corporation (Headquarters: Chiyoda, Tokyo; President: Hiroshi Kubota; hereafter 'Mitsubishi UFJ Trust and Banking'), 77 Strategic Investment No. 2 Investment Limited Partnership (hereafter '77 Capital'), managed by 77 Capital Co., Ltd. (Headquarters: Sendai, Miyagi; President: Akira Konno), and Hirasol Energy Co., Ltd. (Headquarters: Bunkyo, Tokyo; CEO: Min Li; hereafter 'Hirasol Energy') have entered into an anonymous partnership agreement with '100-Year Solar Tohoku G.K.' (hereafter '100-Year Solar Tohoku'). This initiative aims to resolve issues surrounding the disposal and abandonment of solar power plants in the Tohoku region and to promote decarbonization through long-term stable operations. Additionally, 100-Year Solar Tohoku has concluded a project finance agreement with The Kitanippon Bank, Ltd. (Headquarters: Morioka, Iwate; President: Kyoji Ishizuka; hereafter 'Kitanippon Bank'). 1. Background and Purpose of the Project The '100-Year Solar Tohoku Project' is a social issue-solving business that acquires and consolidates small-to-medium-sized solar power plants scattered across the Tohoku region to ensure long-term, stable operation beyond the expiration of the Feed-in Tariff (FIT) period. Many solar power plants in Japan spread rapidly after the introduction of the FIT system in 2012, raising concerns about the potential abandonment or disposal of these facilities once the 20-year FIT period ends. In particular, small-to-medium-sized plants (under 1MW), which account for approximately 90% of domestic solar power facilities, are expected to face increasing maintenance and repair challenges due to the aging of owners and rising maintenance costs. Furthermore, the Tohoku region faces specific challenges such as reduced power generation due to snowfall, panel and mounting structure damage, and increased output curtailment, all of which necessitate more rigorous monitoring and repair. To address these issues, 100-Year Solar Tohoku was established to acquire and consolidate these plants. By leveraging Hirasol Energy's expertise in 'repowering technology' and digital solutions, the four companies—Kamei, Mitsubishi UFJ Trust and Banking, 77 Capital, and Hirasol Energy—have entered into anonymous partnership agreements. Through project financing from the local Kitanippon Bank, the project has secured a financial foundation to support long-term stability beyond the FIT period, advancing this initiative as a regional social issue-solving project integrated with local finance.