In a move to expand its renewable energy footprint, GE Energy Financial Services has invested in a Japanese solar photovoltaic (PV) power project.

The 32 MW Kumenan solar project is located in Okayama prefecture and is being developed by utility-scale solar project developer Pacifico Energy, which will manage construction and operations. The project uses PV modules from Yingli Green Energy.

Kumenan was financed on a non-recourse project finance basis, and was supported by a ¥11bn loan from The Bank of Tokyo-Mitsubishi UFJ and The Chugoku Bank Ltd.

Construction by Toyo Engineering Corporation has begun, with the plant expected to come online in the first quarter of 2016. Its power will be sold to a regional utility through a 20-year power purchase agreement (PPA) at a fixed tariff rate.

David Nason, president and CEO of GE Energy Financial Services, said Kumenan helps Japan meet its goal to get 20 per cent of its power from renewable sources by 2030, as well as growing the company’s presence in new markets.

GE Energy Financial Services has invested $1.8 billion in equity and debt in more than 1 GW of solar power projects around the world. The business unit also says it will finance Japan’s largest solar project in Setouchi.