LG CNS won the contract for 55 Megawatt Yamaguchi Shin Mine Solar Power Project in Japan
LG CNS (CEO: Kim Young-seob) will construct a 55 Megawatt solar power plant in Shin Mine of Yamaguchi prefecture, Japan.
The project amounts to approx. KRW 170 billion in size with the cost of construction and operation combined, and it will last about 18 months with the goal of commencing commercial operation in May 2018.
This project was ordered by Canadian Solar Inc., a global solar company.
The capability of LG CNS in constructing a solar power plant was recognized globally
With this contract, LG CNS will have the record of a total of 162MW construction in Japan, which is the highest among Korean companies, and it has secured its solid position as a leading company in the solar power plant business.
This Shin Mine Project is the fifth solar power plant project run by LG CNS in Japan, and it is a large scale project which will be one of the top 5 solar power plant projects in Japan once it is completed.
LG CNS is the only company among Korean SI contractors that holds construction licenses – in the fields of electricity, construction, civil engineering, etc. – specifically required in Japan and has technologies and human resources to implement turn-key type projects including EPC (Engineering, Procurement, Construction).
Before signing the contract, a technical manager from Canadian Solar visited the headquarter of LG CNS and the sites where LG CNS has finished construction of and is operating facilities in Japan to thoroughly evaluate and verify the capability of LG CNS, and selected it as the contractor.
LG CNS successfully finished the construction of Shimane (10MW) and Tojo (33MW) solar power plants in Japan in 2015, which are currently under commercial operation.
LG CNS accelerates the solar power plant business as its future growth engine
The annual market size of solar power plant business in Japan is 9.7GW (approximately 10GW), which is the second largest behind China (10.6GW). But in Japan, it is difficult for a foreign company to independently perform a solar power plant business due to its strict quality regulations and complex business procedures.
Considering such circumstances, this Shin Mine Solar Power Plant Construction Project is a case that proves the excellence of capability and expertise of LG CNS in constructing and operating solar power plants, and it is being highly recognized both home and abroad.
Currently, LG CNS is negotiating an additional 100MW solar power plant project in Japan.
LG CNS has accumulated business management capabilities from experiences in various SI projects, and has its own EMS (Energy Management System) solution.
Also, LG CNS is looking to diversify its energy business beyond solar powers plants on land to floating solar power plants, wind power plants, ESS (Energy Storage System), etc., and it plans to continuously expand its overseas business into other countries in the wake of advancing into the North American market.
Ha Tae-seok, Executive Director of LG CNS in charge of New Energy Business stated that, “This Shin Mine Solar Power Plant Project will become a solid foundation for expanding our business in Japan, which is a difficult place for foreign companies to advance into, and we will expand our overseas energy business through close cooperation with global partners while developing eco-friendly energy business in Japan.”
Meanwhile, LG CNS reshuffled its organization to preemptively respond to the changes in the market and business environment for 2017. It created『Smart Energy Division』that will be in charge of energy, signage and smart building business to produce outcomes in terms of new growth and strategic businesses.
With this reorganization, LG CNS plans to continuously pursue profitable growth and accelerate the expansion of its energy business.