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Aquila takes shine to Japan with innovative solar deal

The transaction, the firm’s second in the country, sees it invest in a solar park worth more than €120m that also includes co-located storage capabilities.

German asset manager Aquila Capital has backed a 38.4MW Japanese solar plant in a deal worth more than €120 million.

The park, based in Tomakomai, northern Japan, is being built by local developer Green Power Development Corporation. It began construction in July and is scheduled to be connected to the grid in August 2018.

While Aquila described the deal as within “the three-digit million euro range”, a spokeswoman for the firm told Infrastructure Investor the investment was valued at over €120 million. The fund manager did not disclose the size of the stake it took in the project.

Mizuho Bank is providing project finance to the asset, which benefits from a 20-year feed-in tariff of €0.35 per kWh.

The solar park, which is also equipped with co-located storage capabilities, ranks among the largest of its kind in the country. The combined capacity of both the solar generation and energy storage facility totals 38.4MW. Aquila declined to specify the respective share contributed by each of the technologies.

The deal represents Aquila’s second solar investment in Japan, a sector that has experienced a wealth of success since a shift in energy policy in the country following the Fukushima disaster in 2011.

Japan was one of the world’s leading renewables markets last year, installing 10GW of solar capacity, according to the International Renewable Energy Agency. Roman Rosslenbroich, chief executive of Aquila Capital, said the firm is eyeing “further investment opportunities” in the sector.