Nov 30th - Sumitomo To Invest In French Solar Power Project

Sumitomo Corp. plans to take a stake in photovoltaic facilities now under construction in southern France and slated to come onstream next spring.

This is the first time that a Japanese company participates in a French solar power project.

Eco Delta Developpement, a French energy resources firm based in Marseilles, is building 30,000kw of solar plant facilities for roughly 14 billion yen in Les Mees, Alpes-de-Haute-Provence.

Sumitomo will obtain a 49.9% stake in the management company already established to oversee the plant operations. The Japanese trading house will also shoulder half of the project's costs. The facilities will supply power to a French power utility for 20 years, ensuring stable earnings, according to Sumitomo.

The French government plans to increase its domestic solar power generation capacity from roughly 130,000kw to 5.4 million kilowatts in 2020. With France and other European countries expected to pursue solar power projects, Sumitomo aims to accelerate its investment in the region.