Visit to Plant

Landfill Site Transformed Into Clean Power Plant (page 2)

Unique efforts to overcome little sun, snow cover

2013/11/11 13:05
Kenji Kaneko, Nikkei BP CleanTech Institute
Print Page

Facility lease contract covers maintenance, repair

Based on the case in Ota City, in December 2012, Akita City called for proposals from the public on condition that the proposals follow the comprehensive facility lease contract business scheme. The applicants had to be experienced in solar power plant construction, be registered in Akita City's list of qualified bidders for construction and assume the participation of local enterprises.

As a result, the proposal by a corporate organization consisting of TCL, JFE Engineering Corp (Tsurumi Ward, Yokohama City) and Sejimo Construction (Akita City) was chosen at the review committee's meeting in January 2013.

The corporate organization consisting of the three companies was chosen as a result of appreciating not only the value of a lease fee but also how to secure the amount of power generation with little sunshine and what measures should be taken against snow cover, for example.

In the comprehensive facility lease contract, which was stipulated to be the business scheme foundation, Akita City receives sales of the generated power while the remaining part of the sales after deducting the lease fee paid to TCL would be the city's revenue. Akita City would bear the risk of lower-than-expected electricity sales due to fewer sunny days than average per year.

On the other hand, Akita City would not have to bear the risk of worse-than-expected power generation because it is the corporate organization's responsibility to maintain the expected performance of power generation.

TCL has, thus far, concluded three comprehensive facility lease contracts in the large-scale solar power plant market. In addition, TCL established Kyocera TCL Solar LLC (Chiyoda Ward, Tokyo) with Kyocera Corp and has launched large-scale solar power plants in four locations, expecting 60MW to 70MW of power generation business by the end of fiscal 2014.

Kyocera TCL Solar borrows land and runs its own power generation business. TCL established a framework to propose two options: whether to offer a lease contract or to borrow land and become a power producer itself, depending on the client's needs.

(Continue to the next page)