Chichibu City to Lease Land to Infrastrutture Subsidiary for Solar Project

2014/08/27 18:17
Kenji Kaneko, Nikkei BP CleanTech Institute
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The government of Chichibu City, Saitama Prefecture, Japan, announced Aug 25, 2014, that it has concluded a contract with Hergo Sun Japan KK to lease land to the company for a mega (large-scale) solar project.

Hergo Sun Japan (Minato-ku, Tokyo) is a Japanese subsidiary of Infrastrutture SpA, which is based in Milan, Italy. The business site is 21,062m2 of land on the property of the Chichibu Test Site of Saitama Prefecture Agriculture and Forestry Research Center. The government will rent land owned by the prefectural government and privately-owned land, combine them with its own land and lease it to Hergo Sun Japan for an annual rent of ¥100/m2 (approx US$0.96).

Part of the business site was used as farmland. And the government led the conversion of the land for the construction of a mega solar plant. In 2012, through an open-type proposal style, it chose Hergo Sun Japan from two applicants.

Hergo Sun Japan will build a mega solar plant with an output of about 1MW, planning to start the construction and operation of the plant in October 2014 and April 2015, respectively. The plant is expected to generate about 1,100,000kWh of electricity per year.

In January 2013, the company concluded a basic agreement on the mega solar project with the government of Chichibu City, promising to donate ¥1.47 million per year to the city, use local companies for the construction of power generation facilities as much as possible, etc.

Infrastrutture is running renewable energy-related businesses in many countries. Hergo Sun Japan is planning another mega solar project in Kumagaya City, Saitama Prefecture.