Partners Group and Equis Funds Group announced Monday the closing of a US$250 million investment to fund the construction of solar power plants in Japan.
The consortium funding the development of the “Japan Solar” platform is composed of Partners Group, a Zug, Switzerland, private markets investment firm; Equis, a Singapore private equity firm focused on infrastructure and energy-related investments; Australian superannuation funds A$7.4 billion (US$6.7 billion) LGsuper, Brisbane, and A$6.2 billion Qantas Superannuation Plan, Melbourne; and Boston-based Babson Capital.
A Partners Group spokeswoman said contributions of specific consortium members aren’t being disclosed.
According to a news release, the consortium will partner with Nippon Renewable Energy KK — an independent solar utility business in Japan with rights to develop more than 300 megawatts of Japanese solar projects over the next two years — to construct solar power plants across Japan. The first is expected to start generating electricity in the second half of 2014.
The spokeswoman said the current investment will provide sufficient capital to develop 157.5 megawatts of solar capacity, extending into 2015. “It is likely that a further Japan Solar fundraising will be undertaken later this year to meet the needs of the NRE pipeline,” she added.
The news release noted that the projects will benefit from 20-year power purchase agreements and favorable tariffs introduced by Japan’s government to encourage investment in the sector.
In the release, Benjamin Haan, managing director and head of private infrastructure Asia-Pacific at Partners Group, predicted there will be “additional investment opportunities in the near term that will offer our clients the opportunity to further contribute to sustainable energy development in Japan.”