Mizuho Leads Formation of Long-term Private Fund with Agri-Solar Power Plants
Mizuho Securities, ML Power, a 100% subsidiary of Mizuho Leasing, Blue Sky Solar, and Blue Sky Asset Management have collaborated with lending financial institutions including Orix Bank and Joyo Bank to form a long-term private fund with agri-solar power plants as underlying assets through non-recourse project finance and equity investment.
Target Assets
The power plants acquired in this Project are six operational agri-solar power plants located in Minamisoma City, Fukushima Prefecture, with a total equipment capacity of approximately 11 megawatts. Myoga (Japanese ginger) is cultivated in the space beneath the solar panels.
About Agri-Solar Power Generation
Agri-solar power generation is a business that involves obtaining temporary conversion permits for agricultural land, installing support pillars on farmland, setting up solar power generation equipment in the upper space, and continuing farming while generating electricity. In Japan, the decline in agricultural workers due to aging farmers and shortage of new farmers has led to an increase in abandoned farmland nationwide. Agri-solar power plants enable both crop cultivation and solar power generation by installing solar panels above agricultural land. This approach is drawing attention for its potential to promote agriculture through planned and efficient use of abandoned farmland, as well as its contribution to the spread of renewable energy and regional economic revitalization.
Local Impact and Employment
During the myoga harvest season at these power plants, significant manpower is required, creating opportunities for employment across a wide range of age groups locally and promoting continuous job creation and community contribution through agricultural-welfare collaboration.
Role of Each Company
- Mizuho Securities: Structure development and finance arrangement
- ML Power: Risk capital provision
- Lending financial institutions: Non-recourse project finance loans
- Blue Sky Solar: Power plant maintenance and management (O&M) and agricultural support services
- Blue Sky Asset Management: Asset management services
Through participation in this Project, each company aims to contribute to job creation in the power plant surrounding areas and the expansion of renewable energy in Japan.
Norbert Gehrke
