China’s Wuxi Suntech Power is set to invest up to $2.5 billion to expand its activities in Japan.
In an interview with Japanese business newspaper The Nikkei, Wuxi Suntech CEO Eirc Luo said the company planned to invest heavily in the country’s retail electricity market, including money raised through bank lending.
Wuxi Suntech will expand operation in the country though its Japanese unit. Plans include constructoin of large-scale solar farms and the sale of generated power to electric companies by way of Japan’s feed-in tariff program. While the government has lowered solar energy FIT rates, they remains among the highest in the world.
According to Wuxi Suntech’s chief exec, the company is aiming to install between 800 MW and 1 GW of capaciy in Japan in the next three years.
While Luo admitted that achieving 1 GW — equivalant to the output of a nuclear reactor — would be difficult in the short term, he said the company was eyeing possible acquisitions, including power plants built by foreign companies, that would surpass the group’s target in the country.
Wuxi Suntech, which recently became a debt-free part of China’s Shunfeng following bankruptcy proceedings last year, appears eager to expand its operations globally with the support of its new parent company.
In July, Luo said the company was also looking to expand in the U.S., where it was likewise exploring acquisitions.