Itochu holds 37.5 % of the shares in Scatec Solar, and jointly the two companies aim to be a substantial developer of PV projects in Japan. Solar PV has again become attractive as Japanese authorities have increased feed-it tariffs in order to spur the development of renewable energy following a decision to move away from nuclear energy in the aftermath of Fukushima.
Scatec Solar will develop, build, operate, and own solar PV projects in Japan. Itochu has already developed a considerable pipe-line of projects of which feed-in tariffs have been granted for the first 40 MW, and structuring of this project is well underway. Scatec Solar will collaborate with Itochu to realize this first 40 MWp project and the remaining project pipeline will be transferred to Scatec Solar. Further, Itochu will also second part of its solar development team to Scatec Solar, ensuring that the right capabilities for succeeding in the market is immediately available.
Scatec Solar will bring its vast experience from developing large PV projects in other parts of the world to Japan. In addition to core PV activities, the services offered by SSO include financing, equity structuring as well as managing all parts of the projects on behalf of co-investors in the Special Purpose Companies established for each project. Still, the support from Itochu Corporation to maneuver and operate in Japan is crucial and will be key to ensure success of Scatec Solar in this market.