Sponsor management2.Use of advanced sponsor management capacity in pursuit of opportunities
for growth of the Investment Corporation
Case Study of Planning and Development of Large Solar Power Generation Facilities: CS Mashiki-machi Power Plant
Since 2013, the Sponsor has been actively developing solar power generation facilities at many different locations in Japan, leveraging the expertise in planning and development fostered by the Canadian Solar Group as developer based on the vertical integration model. The properties it has acquired reflect its advantages.
Among them, CS Mashiki-machi Power Plant has one of the largest solar power capacities in Kumamoto Prefecture, with a panel output of 47.6 MW. The tremendous number of solar panels required for development of a large-scale solar power plant like this means that cost effectiveness can be increased by reducing system expenses. However, projects like this require operators to have accumulated experience and expertise in project execution, such as negotiations with a large number of landowners and local governments associated with the vast site, and unfailing acquisition of approvals and licenses for development in accordance with the Cropland Act, the Forest Act and other related statutes. They also involve new installation of super high voltage substation facilities and private lines as well as for notifications for them and various procedures for connection to the power grid. The workload for construction and the financial burdens are such that they are more difficult to execute than development projects for small- and medium-sized solar power plants.
|❶ Solar modules||Silicon and other semiconductors as the main constituents emit electrons when exposed to light. This is called the photoelectric effect. With this effect, solar modules generate electricity. They do not store electricity .|
|❷ Connection box||A device for collecting electric power (in direct current) generated from solar modules. A solar cell string consisting of serially connected solar modules serves as one line. Electric power is gathered in a single connection box through backflow prevention diodes on individual lines.|
|❸ Power conditioner||Electricity generated from solar modules takes the form of a direct current, like electricity from dry batteries, whereas electricity that is generally used takes the form of an alternating current. This component converts direct currents into alternating currents.|
|❹ Substation equipment||Raises the voltage of electricity converted by the power conditioner into an alternating current to the voltage level on the grid.|
|❺ Switching station||Transfers electricity generated at the power plant to the grid of the electric power company.|
|❻ Pyranometer||Measures the amount of energy irradiated from the sun per unit of time and per unit of area.|
|❼ Monitoring cameras||Used for remote monitoring if any panel in the solar power plant is stolen or is otherwise in any abnormal state.|
O&M Services in Japan Based on Expertise of Sponsor Engaged in Development
|●||With respect to preferential provision from the Sponsor of information owned by the Sponsor and its group in accordance with the Sponsor support agreement and solar power generation facilities acquired following the provision of the preferential right of negotiation to purchase them, the Investment Corporation will in principle commission O&M services to CSOM Japan for the purpose of receiving such services to the extent considered necessary by the Investment Corporation that are as uniform in detail as possible. In addition, it will designate the Sponsor as guarantor that guarantees the obligations of CSOM Japan under the agreement for commissioning O&M services.|
|●||The Investment Corporation will thereby aim to reduce operation risks. It will also place bulk orders with the aspiration of reducing operating costs.|
Schematic of Linkage with CSOM Integrated Monitoring System