The 16 billion yen ($201 million) plant will be built on reclaimed land Mie and Aichi prefectures will lend, Mie prefecture said in a statement today.
Construction will begin in May and operations will start in October 2014, according to the statement. The plant will have the capacity to supply about 15,000 households.
All electricity generated at the facility will be sold to Chubu Electric Power Co. (9502), according to Yoshinori Tsuji, an official in charge of the project for Mie prefecture.
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