LG CNS, Sonnedix sign $112m solar power deal

LG CNS, a leading Korean information technology solution provider, said Tuesday it has secured a 130 billion won ($112 million) project to build a 33-megawatt solar power plant on the island of Kyushu, Japan.

Together with the latest deal, the company has won three solar power projects in Japan, with their combined power capacity reaching 43 megawatts.  

The company said the plant will be located in the city of Imaichi, Oita Prefecture. Its construction will take about two years.

Its sister company LG Electronics will be providing its 315-watt high-efficiency solar power modules.

LG CNS signed the deal with Oita Solar, a special purpose company, in which U.S. solar developer Sonnedix has stake. It also plans to expand its partnership with Sonnedix.

The company is a preferred bidder for Sonnedix’s new solar power projects with a combined power capacity of 80 megawatts in Japan. The two companies signed a memorandum of understanding in June for their Latin America business.

“The Imaichi project will pave the way for us to secure a firm footing in Japan, a tricky market for foreign companies,” said LG CNS senior vice president Kim Tae-geuk.

“We will seek to expand solar power business in Japan and other countries.”

Japan is the world’s second-largest solar power market after China. Its power generation reached 9.7 gigawatts in 2014.

It is also considered one of the more difficult markets to enter for foreign operators due to the country’s strict regulations.

LG CNS predicted its growing presence in Japan would be helpful to expanding its presence globally.

Early this month, the company set up a new project team with aims to spur its energy business in Korea and abroad. 

By Lee Ji-yoon (jylee@heraldcorp.com)