Portfolio Strategy
Basic Policy
"Ichigo Green is a solar power YieldCo that leverages its sponsor's (Ichigo: TSE1 2337) capabilities and track record in renewable energy production to maximize shareholder value.
While Ichigo Green primarily invests in small- to mid-size solar power plants, it will also invest in large-size power plants (including investments in TK equity interests), as appropriate, to construct a well-balanced portfolio and diversify its power plant size. Ichigo Green also diversifies its portfolio geographically by owning power plants across Japan.
Ichigo Green considers the following factors in making investment decisions: (1) size of the solar power plant; (2) location, including sunlight hours, climate, and ease of connection to the power grid of the electric utility companies; (3) technical specifications of equipment such as photovoltaic modules and power conditioners; (4) track record of power generation; (5) the specific feed-in tariff and remaining contractual power procurement period under Japan’s Renewable Energy Law; and (6) the acquisition or lease, including its terms, of the land on which the solar power plant is established.
Geographic Focus
Ichigo Green invests primarily in solar power plants in Japan. While we have not set any target investment amounts for each region within Japan, Ichigo Green will consider the geographic diversification of the current portfolio as well as the demand for renewable energy in the target area in making investment decisions.
Investment Focus
Ichigo Green invests in solar power plants with proven operational track records and long-term Feed-In Tariff (FIT) contracts in place with Japanese electric power utilities, and in principle, does not invest in development projects. Power plants with less than one year of operational track record are warehoused by its sponsor, Ichigo, until the track record exceeds one full year and Ichigo Green can make its investment.
When investing in solar power plants that have existing FIT power purchase contracts, Ichigo Green will consider general price trends and macroeconomic conditions, the specific procurement price applied to the solar power plants, the remaining contractual procurement period, rules pertaining to power output control, and any other rules under Japan’s FIT system.
While Ichigo Green will primarily invest in solar power plants with total power generation capacity between 1 - 2 MW, we will also invest in larger facilities, as appropriate, to construct a well-balanced portfolio. When investing in solar power plants, we will examine the terms of existing power-purchase and grid-connection agreements. Ichigo Green will only invest in solar power plants where the leaseholder is contractually guaranteed to receive an amount equal to or greater than the amount agreed to under the existing FIT power purchase contract with the electric utility company.