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

Kamei Corporation (Headquarters: Sendai, Miyagi; President: Akio Kamei; hereinafter 'Kamei'), Mitsubishi UFJ Trust and Banking Corporation (Headquarters: Chiyoda-ku, Tokyo; President: Hiroshi Kubota; hereinafter 'Mitsubishi UFJ Trust and Banking'), 77 Strategic Investment No. 2 Investment Limited Partnership (hereinafter '77 Capital'), operated by 77 Capital Co., Ltd. (Headquarters: Sendai, Miyagi; President: Akira Konno), and Hirasol Energy Inc. (Headquarters: Bunkyo-ku, Tokyo; CEO: Min Li; hereinafter 'Hirasol Energy') have entered into silent partnership agreements with '100-Year Solar Tohoku LLC' (hereinafter '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. 100-Year Solar Tohoku has also concluded a project finance agreement with The Kitanippon Bank, Ltd. (Headquarters: Morioka, Iwate; President: Kyoji Ishizuka; hereinafter '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 were rapidly deployed following the introduction of the FIT system in 2012, raising concerns about the disposal and abandonment of these plants after the 20-year FIT period ends. In particular, small-to-medium-sized solar power plants (under 1MW), which account for approximately 90% of domestic solar power plants, are expected to face increasing maintenance and repair issues due to the aging of owners and rising maintenance costs. Furthermore, in the Tohoku region, there are additional challenges such as reduced power generation due to snowfall, damage to panels and mounting structures, and increased output curtailment, necessitating more appropriate monitoring and repairs.

To solve 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 silent partnership agreements. Additionally, through project financing from the local financial institution, Kitanippon Bank, we have established a financial foundation to support long-term stable operation beyond the FIT period, promoting this as a social issue-solving project for the Tohoku region in integration with local finance.

2. Project Features (Operational and Technical Aspects)

100-Year Solar Tohoku plans to acquire a total of 10MW of small-to-medium-sized solar power plants in the Tohoku region by 2029. The acquired plants will undergo performance evaluation and analysis using the technology of Hirasol Energy, which serves as the asset manager, and will be repowered as necessary to restore them to their expected power generation levels. Hirasol Energy utilizes modeling technology based on proprietary weather data and 30-minute interval power generation data to assess plant performance.