Japan Asia Group Moving Ahead With 500 MW Solar Plan in Japan

Japan Asia Group Ltd. (3751), a developer of clean energy projects, said plans to develop 500 megawatts of solar projects in Japan are moving ahead while it considers trimming European operations.

The Tokyo-based company plans 110 megawatts for the year ending March 31, Tetsuo Yamashita, chairman of the company, said at a meeting with analysts today. About 190 megawatts are proposed for fiscal 2014 and about 200 megawatts the following year, he said.

“Our plan is going very well,” Yamashita said, adding that the company intends to announce large-size projects at the end of June. The 500-megawatt plan includes about 100 megawatts to be developed for clients, according to the company.

Japan Asia’s green energy division, which is responsible for clean energy projects, posted a loss of 343 million yen ($3.4 million) for the year ended March 31. The company, which includes a brokerage and aerial surveyor under its businesses, projects no profit for the division this fiscal year.

Japan’s solar market is booming on an incentive program for clean energy introduced in July to increase power generation from renewable sources such as solar and wind after the 2011 Fukushima nuclear disaster.

European Operations

Yamashita said that his company may trim its solar business in Europe though a decision is yet to be made. Japan Asia has developed 24 solar plants in Europe, according to its website.

The company may make an announcement in June or July about how to finance some of its solar projects, the chairman said. Japan Asia received a 1.6 billion yen loan for five solar projects from Shinsei Bank Ltd. (8303) and Mitsubishi UFJ Lease & Finance Company Ltd., the company said in a statement in March.

To contact the reporter on this story: Chisaki Watanabe in Tokyo at cwatanabe5@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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