Chugoku Electric Secures JPY149 Billion in GX-Backed Financing for Shimane-3 and Other Decarbonisation Projects

Chugoku Electric Power Co. announced on 25 September that it will raise a total of JPY149 billion through transition loans for decarbonisation projects, using financial support provided by the GX Acceleration Agency. The funds will be used for projects including safety upgrades at Shimane Nuclear Power Station Unit 3 (ABWR, 1,373 MWe).

The loans will be provided under the GX Acceleration Agency's debt guarantee scheme by eight financial institutions: Mizuho Bank, the Development Bank of Japan, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, MUFG Bank, Resona Bank, SBI Shinsei Bank and Shinkin Central Bank.

In addition to safety upgrades at Shimane-3, the financing will support projects including the replacement of turbines and generators at the Akatsuka Hydroelectric Power Station in Shimane Prefecture to improve its generating efficiency. The loan agreements are scheduled to be signed on 28 September, with the funds to be disbursed on 30 September.

This will be the second time Chugoku Electric has raised funds using financial support from the GX Acceleration Agency, following an earlier financing in March this year. In the first round, the company obtained loans from five financial institutions to fund safety upgrades at Shimane-3 and repowering work at the Toyokawa Hydroelectric Power Station in Shimane Prefecture.

Chugoku Electric said it will continue to consider using the scheme to support medium- and long-term investment in decarbonised power sources.