Japan’s leading solar company makes first overseas venture in Thailand

West Holdings Corp., a leader in solar power installations in Japan, has partnered with Japanese banks for its first overseas venture in Southeast Asia, where it plans to provide energy-efficiency expertise via services ranging from consulting to equipment installations.

The Paris Agreement, a global pact against climate change, is likely to come into effect within the year so West Holdings is expecting an increase in the demand for energy management solutions.

West Holdings and its partners have established a company in Thailand with a capital of 30 million yen (US$297,000). West Holdings owns 49% of the stakes, while Bank of Tokyo-Mitsubishi UFJ’s Thai investment firm holds 10% and Mizuho Bank, Sumitomo Mitsui Banking Corp. and Resona Bank invested 8% each.

Japanese businesses with offices and factories in Thailand are seen as the initial clients. Utility costs are expected to be cut by more than half with the use of solar power equipment, LED lights and efficient air conditioners.

The Thai-based company will not charge for installing the equipment, receiving instead a portion of the client’s savings on electricity fees. Clients will be able to keep the equipment after the contract ends.

The company will tap partner banks’ networks with local financial institutions for data on potential customers. The banks can also supply clients with funds to set up the equipment.

The venture aims for 10 billion yen in orders by the year 2018 as its clientele expands to local Thai businesses and then to the rest of Southeast Asia.