Providing Business Capital to North Hokkaido Wind Energy Transmission for the Establishment of a Power Grid and Working Capital

North Hokkaido Wind Energy Transmission Corp. (headquarters: Wakkanai, Hokkaido) was established from an investment by Eurus Energy Holdings Corporation (headquarters: Minato-ku, Tokyo) and others. The company, which establishes and operates local power grids, aims to introduce and expand wind power generation into the northern region of Hokkaido.

In accordance with the national policy to introduce and expand renewable energy, Japan is expecting further expansion of wind power generation. In this regard, the northern region of Hokkaido offers notably favorable winds, making it an optimal location for wind power generation. However, at present the power grid in the region is weak and wind resources are not being effectively utilized.

This investment is for a large-scale project with a total interconnection rated capacity from wind power generation of roughly 600 MW and a total project cost of around ¥100 billion. DBJ, in collaboration with local financial institutions, developed a scheme and provided long-term business financing for the expansion of renewable energy in the northern region of Hokkaido.

DBJ aims to help solve grid connection issues that hinder the expansion of renewable energy. This investment is the first provision of project financing to a power transmission business in Japan.