Canadian Solar to build solar plant in Japan

Canada based Canadian Solar has unveiled plans to build a manufacturing plant to produce solar panels by early 2013 in Japan.

The company said it will invest billions in the new plant, which will have an annual production capacity of 150MW of solar panels.

Canadian Solar Japan president Yu Kaname said, "It will be more efficient to produce (the solar panels) where consumers will be using them."

The move to manufacture domestically has been taken to meet the anticipated demand in the nation; the company currently imports its solar panels from China.

Canadian Solar is one among the many domestic and overseas companies competing for the government’s incentive program which will increase demand of green energy demand following the Fukushima Daiichi nuclear disaster.

Under Japan’s renewable-energy feed-in tariff scheme, clean electricity will be purchased by all the major electric utilities in the country at a rate of JPY42 ($0.52) per kWh, including sales tax.

Canadian Solar is expecting to construct a separate 2,000kw solar plant and start its operations by March 2013 in Tsu, Mie Prefecture.

The company is examining sites in Fukushima Prefecture and other areas to include a training centre to maintain solar panels and other works at the plant and help local employment.

Canadian Solar is expecting to increase its market share in Japan to 10% in the next five years from the current share of 3%.