Toshiba and SunEdison to Build Solar Plants in Japan

Toshiba Corp and SunEdison have agreed to build solar power plants in Japan. SunEdison will sell the power generated at these plants. Toshiba expects 270 billion yen ($2.75 billion) in orders for construction of power-plant-related facilities by the fiscal year end, and the Japanese company is in talks to build four or five mega-solar plants.

Renewable energy sources have found more favor in Japan after the introduction of a new energy law that took effect on July 1, 2012 as the country phases out nuclear power in the wake of the Fukushima disaster in 2011. The new law requires utilities to buy all electricity output from solar, wind, biomass, geothermal and small-sized hydro power plants at preset rates for up to 20 years.