Webinar on the Joint Crediting Mechanism (JCM)
Implementation for Sri Lanka
Contribution to GHG Emission Reductionsin Sri Lanka through the JCM

February 16, 2024
Yasumitsu Kida
Shibata Corporation Co., Ltd.

About Us : Shibata Corporation Co., Ltd.
Company Name Shibata Corporation. Co., Ltd.

Establishment March 1953 = 70 years history
Sales

Head Office
Branch Office

JPY 4.57 Bn (FY2022)
Around USD 30.60 Mn

Fukui-city, JapanTokyo & Osaka

Overseas

Sri Lanka, Singapore, Thailand,
Vietnam & Malaysia

Websitehttps://www.shibata-s.co.jp

FUKUI

Source: Google map

Main Business Fields(1) Renewable Energy~ Solar Power(2) Decarbonization~ Carbon Credits & RECs

(3) Environment &Energy Saving- Construction, O&M andSales of Solar Power Plants/ Systems- Issuance and Sales ofEnvironment Values(Carbon Credits & Reusable
Energy Certificates (I-REC))in Asian Countries

Proposing Products & Service
for Environmental-friendly &Energy Saving- PPA- Consultation & Co-working
for Carbon Neutral Business(4) Real Estate Sales &Construction

Global Business of Shibata Corp. Group

Japan・ Renewable EnergyThailand

・ Decarbonization(Carbon Credits & I-RECs)・ Renewable Energy (PPA) &Environment
・ Decarbonization(Carbon Credits & I-RECs)

VietnamMalaysia
・ Decarbonization(Carbon Credits & I-RECs)
・ Food Import & Wholesale

Sri Lanka
・ Renewable Energy

・ Food Wholesale & Agriculture
・ Hotel Operation

Singapore・ Overall Management of
Asian Countries Business・ Decarbonization

・ Decarbonization(Carbon Credits & I-RECs)

Shibata Corp. Group has plenty of experience, knowledge & network for Sri Lankan business
Source: Google map

Outline of our selected JCM Model Project in FY2023

Source: https://gec.jp/jcm/kobo/mp240202/

Outline of our selected JCM Model Project in FY2023
Project Title: 13.5MW Solar Power Project in Kebithigollewa,
North Central Province / Sri Lanka
Representative ParticipantPartner Participants

Shibata Corporation Co., Ltd.
Windforce PLC
Kebithigollewa Solar Power (Pvt) Ltd

Plant Capacity

13.5MW

Expected GHG Emission
Reductions

6,511 tCO2/year

Expected COD

July 2024

Required MRV Period

17 Years

North Central
Province

Source: Google map

International Consortium

Representative Participant (Japan)
Shibata Corporation Co., Ltd.

Partner Participants (Sri Lanka)

Windforce PLC
Kebithigollewa Solar Power (Pvt) Ltd*SPC

Implementation Structure
Government of JapanInternational Consortium(Ministry of Environment)
FinancialsupportGEC

Representative Participant
Shibata Corporation Co., Ltd.

FinancialsupportResponsibility:

MOC on JCM

Overall management of the project
Report of MRV

Joint
implementation

Government of Sri Lanka

Project management
Financial support

Partner Participants(Parent Company)

Windforce PLC
Responsibility:

Order(SPC)

Kebithigollewa Solar
Power (Pvt) Ltd

Implementation of EPC and O&M
of the project
Construction
work

Construction company

Order

Supply &support

Manufacturers / SuppliersSchedule & Progress
ScheduleProcess

Jul 31, 2023

Submitted our Proposal for the
JCM Financing ProgrammeAug-end, 2023

Hearing Assessment by GEC

Oct 13, 2023

Joint Committee
b/w Sri Lanka & Japan
Approval of our Proposal for theJCM Financing Programme

Dec-mid, 2023

Start of Procurement &Construction Works
Dec 2023- Jun 2024

Procurement & Construction Works
with our Monitoring & Report toGovernments

Jun 2024

Completion of Construction & Test
Operation of the Project

Jul 2024

COD

Lessons Learned(1) Before Application■ Understanding of Sri Lankan economic & business environmentand corporate information in Sri Lanka- Especially for renewable energy business & FIT- Situation of the Sri Lankan economy & business has been
drastically & rapidly changed.
■ Sufficient experiences for the development & operationof projects similar to the proposed projectLessons Learned(2) Project Formulation■ Formulation of projects with reliable & feasible planning- Acquisition of related licenses(land approval, energy permit, grid connection, environment assessment, etc.)- Highly reliable presumption of acquisition of PPA- Feasible & realistic project financing plan (equity/loan)

Lessons Learned(2) Project Formulation■ Formulation of projects with profitable business planning- 17 years business projection with profitability* in case of solar power plant project- Reasonable profitable projection, even considering the highinterest rates in Sri Lanka- Risk / possibility of sudden policy changes in Sri Lanka's
macroeconomic environment, taxation, etc.

Lessons Learned(2) Project Formulation■ Communication with the Ministry of Environment of SriLanka & the Embassy of Japan in Sri Lanka from the stageof project formation and application(3) Project Participants■ Fully understanding of 17 years obligation of MRV(Measurement, Reporting, and Verification)- Establishment of system & team structure, especially formonitoring, O&M & reporting, with written agreements

Lessons Learned(4) Overall■ Higher likelihood of adoption to the JCM Financing Programme
for good quality & well organized projects, compared to othercountries■ Importance of sincere & open report & consultation to GEC
about any concerns or issues during the assessment &implementation processes