Kyocera Corp, IHI Corp and Mizuho Corporate Bank have signed a basic agreement to build a 70MW solar power plant in southern Japan.

Under the agreement, the Kyocera Group will oversee the supply of 100% of the solar modules and part of the construction and maintenance of the system.

The solar power plant is being constructed to help solve Japan’s power supply issues caused by the effects of the Great East Japan Earthquake, and to make a contribution to environmental protection, including the reduction of CO2 emissions.

A special-purpose company will be established to undertake the business operation of the mega-solar plant, with Kyocera planning to become the largest shareholder.

The total project cost is estimated at about JPY25bn ($309m), with construction to commence in July 2012.

The facility will generate about 79,000MWh of annual electricity and will provide the equivalent power for roughly 22,000 average households, and will help to offset roughly 25,000 tons of CO2 per year.