No. 58: Japanese photovoltaic generation technology goes to Canada (June 16, 2012)

Business trend

Three Japanese companies, Osaka Gas, Mitsubishi Corp., and Sharp, will build a total of nine mega solar power plants in the eastern part of Ontario of Canada with an investment of 35 billion yen, and jointly operate them to accumulate know-how on the operation and management of a mega solar power plant. The nine plants will have a total generation capacity of 100,000 kW. The three companies will jointly establish an independent power producer in Canada with a capital of about 10 billion yen, of which Osaka Gas and Mitsubishi Corp. pay 45% each and Sharp pays the remaining 10%, shortly in Canada. They are scheduled to build three plants in 2012, and the remaining six plants by the end of 2013.

They have already concluded a contract with Ontario Power Authority to sell generated electricity for 0.44 Canadian dollars (about 35 yen) for 20 years. At the strong request of the Ontario authorities, the project will employ Canadian solar panels. The annual output is scheduled to be more than 100 million kW that is enough for the annual power consumption of more than 10,000 households. The purchase price of 35 yen is rather high, and it is currently second highest following the price of 42 yen set by the Japanese government. Osaka Gas is actively investing in the renewable energy business to make it as a new mainstay. The wind power generation plant it built in Australia in alliance with Marubeni has been operating since June 2011. 

 The mega solar business developed by Sharp in Italy