A project represents thefirst investment into power generation

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The project o reduce greenhouse gases will simultaneously contribute to the promotion ofrenewable energy utilization in Bulgaria and to the acquisition ofcredits based on emission reduction units (ERU) by Japan.
The KWP wind farm, located at Kaliakra Cape on the Black Sea coast,incorporates 35 MWT62/1.0 wind turbines and has a capacity togenerate 35 MW of electricity.
The wind turbines, each having a rated power output of 1000kW, weremanufactured at MHI's Nagasaki Shipyard and Machinery Works andYokohama Machinery Works.
MHI has coordinated construction of the farm and participates inits operation together with inos, the JV partner that performedcivil construction work and wind turbine installation, andMitsubishi Power Systems Europe, Ltd. (MPSE), the company'ssubsidiary in England for power systems business in Europe,
KWP was established in Sofia in late 2005 with MHI owning 70 percent and inos the remaining 30 per cent (capitalization: €10m($15.46m)). Investment by MHI and a subordinated loan to KWP werearranged by MHI Investment International BV, MHI's wholly ownedinvestment company in the Netherlands. The project represents thefirst investment into power generation in Bulgaria by a Japanesecompany.
Bulgaria, in line with joining the EU in January 2007, aims to meet11 per cent of its total energy consumption needs with renewableenergies by 2010. MHI began investing into the Kaliakra projectprior to the country's joining the EU, through cooperation providedby Japan Bank for International Cooperation (JBIC).
MHI's investment has also helped Bulgaria achieve an environmentconducive to renewable energy investments. The project was financedthrough a syndicated loan furnished to Bulgaria by JBIC and MizuhoCorporate Bank in Japan. The total loan amount is approximately€37m.
The KWP project is expected, availing of wind power, to reducecarbon dioxide (CO2) emissions by some 85 000 tons annuallycompared to conventional thermal power generation. Of the emissioncredits obtained through the project, up to 350 000 tons will besold to Japan Carbon Finance, Ltd. (JCF), a company established byJBIC and major Japanese corporations in 2004. MHI will purchase anysurplus credit beyond 350 000 tons.
The Kaliakra wind farm project is MHI's second overseas powergeneration investment initiative. The first involved investment inAES Energia Cartagena S.R.L., an independent power producer (IPP)in Spain which signed with MHI in 2003 and commenced commercialoperations in 2006.
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