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-ku, 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-ku, 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') to address the issues of waste and abandonment surrounding solar power plants in the Tohoku region and to promote decarbonization through long-term stable operation. Furthermore, 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, looking beyond the expiration of the Feed-in Tariff (FIT) period. Many solar power plants in Japan spread rapidly following 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, for small-to-medium-sized solar power plants (under 1MW), which account for approximately 90% of domestic solar power facilities, an increase in poorly maintained or unrepaired facilities is anticipated due to factors such as the aging of owners and rising maintenance costs. Additionally, the Tohoku region faces specific challenges, including reduced power generation due to snowfall, panel and mounting structure damage, and increased output curtailment, all of which necessitate more rigorous monitoring and repairs. To address these issues, 100-Year Solar Tohoku was established to acquire and consolidate small-to-medium-sized solar power plants in the Tohoku region, aiming for long-term stable operation by leveraging Hirasol Energy's strengths in 'repowering technology' and 'digital technology.' Kamei, Mitsubishi UFJ Trust and Banking, 77 Capital, and Hirasol Energy have each signed anonymous partnership agreements. Furthermore, through project financing from the local financial institution, Kitanippon Bank, the project has established a financial foundation to support long-term stable operations beyond the FIT period, promoting this as a regional social issue-solving project integrated with local finance.