Tokyo (SCCIJ) – Etrion Corporation, a solar independent power producer headquartered in Geneva, Switzerland, has announced that the Komatsu solar project totaling 13.2 megawatts (MW) has commenced full commercial operation. This new solar project, built by Hitachi High-Technologies, was completed ahead of schedule and on budget. Etrion also delivered strong project-level results in the first quarter of 2018 from its Japanese assets.
Capturing the summer sun
Komatsu is a 13.2 MW utility-scale solar photovoltaic (“PV”) power project site in the Ishikawa prefecture of the Honshu region in Japan. The Komatsu site has a twenty-year power purchase agreement (“PPA”) with the Hokuriku Electric Power utility and will receive ¥32 per kilowatt-hour (“kWh”) produced. The Komatsu solar project is expected to produce approximately 14.2 gigawatt-hours (“GWh”) of solar electricity per year.
Marco A. Northland, Etrion’s Chief Executive Officer, commented, “We are delighted with our continuous progress in Japan and Komatsu represents an important milestone as we reach nearly 60 MW of gross capacity now operating in Japan. I am very grateful to our team, Hitachi High-Technologies and all other stakeholders that worked around the clock to complete this project ahead of schedule.”
Komatsu mega solar park
The early start of commercial operation enables Etrion to capture all the revenues during the summer, being the highest production months. It also releases internal resources which can now focus on the next projects in the backlog targeted to begin construction within the next 12 months”, CEO Northland said.
Japan operation supported results
In the first quarter of 2018, higher installed capacity and electricity production, combined with significant reduction in corporate overhead resulted in a significant increase in revenue and consolidated pretax profit of Etrion compared to the same period in 2017. The financial performance in Japan was particularly strong with production and revenues up by 9% and 12%, respectively, compared to the first quarter of 2017.
Growth opportunities in Japan would remain positive with nearly 400 MW of projects in different stages of development, including a backlog of 190 MW and nearly 200 MW of early stage pipeline, Etrion said. Snowfall reduced electricity production, but CEO Northland commented: “Japan continues to deliver very positive results”. Etrion has also made significant progress on the development of three key projects in the backlog, with an aggregate net capacity of about 100 MW, targeting to commence construction within the next twelve to eighteen months.
“On the operational side, our plants are performing well above plan, despite facing a first quarter with one of the heaviest snowfalls in nearly 40 years that caused approximately 200,000 US dollar of lower revenue. We continue to drive costs down and fine tune the business to better support our growth in Japan,” Northland stated.
About Etrion
Etrion Corporation is an independent power producer that develops, builds, owns and operates utility-scale solar power generation plants. The company owns and operates 56.7 MW of solar capacity, all in Japan. Etrion also has several projects in the backlog and pipeline at different stages of development in Japan. Etrion is listed on the Toronto Stock Exchange in Canada and the NASDAQ OMX Stockholm exchange. Etrion’s largest shareholder is the Lundin family, which owns approximately 24% of the Company’s shares.
Text: Etrion; Photo: © Hitachi High-Technologies America, Inc.
