The Goldman Sachs Group is set to invest around 487 million dollars in the next five years in Japan’s renewable energy market. This is made due to the country’s increasing demand for electricity from solar and wind power as it tries to decrease its reliance on nuclear energy.
The investment will be coursed through the Japan Renewable Energy Co. unit which was created by Goldman in August 2012 to arrange the details, map out the design and operate power plants that will be running on renewable materials including the sun, wind, fuel cells and biomass fuels. They will be spreading out this investment through bank loans and project financing worth 2.4 billion dollars over 5 years for projects that will cost around 2.9 billon dollars in total.
Japan can potentially become the 2nd biggest market for solar energy by the end of the year, second only to China. Solar installation projects will increase from 6.1 gigawatts to 9.4 GW in this year alone. The increasing number of solar energy projects is proof that Japanese companies are seeing the benefits of green energy. With the investment by Goldman, companies like Kyocera Corp., Sharp Corp. and Suntech Power Japan Corp. will benefit since they make and sell solar panels for both industrial and residential use.
Since the aftermath of the Fukushima nuclear plant meltdown in 2011 that saw only 2 of the country’s nuclear plants operational, Japan has started to reduce its dependence on nuclear energy. Companies like Softbank Corp, Orix Corp and even the country’s biggest lending banks like Mizuho Financial Group are keen in investing in renewable energy projects as well. While the government still seems keen to get as many nuclear plants online soon due to the high energy demand, they are also trying to promote renewable energy sources, particularly solar power, by offering renewable tariffs.
[ via Nasdaq ]