GE Energy Financial Services (GE EFS) has created a JPY43bn ($383m) solar fund in Japan, with Development Bank of Japan being the anchor investor.
The fund is being viewed as an investment vehicle by GE to lead the Japanese solar market. GE plans to extend the fund by JPY75bn ($669m) and it is expected that the fund has the potential to reach JPY90bn ($803m).
Development Bank of Japan (DBJ) has helped GE in structuring the fund and has committed to act as an anchor investor for one third of the interests.
The fund will invest in operating projects across Japan including the 32MW Kumenan solar plant that started its operations last year and where GE EFS previously held a majority stake.
The fund creation comes at a time when Japan is moving towards its goal to generate about 24% of its electricity from renewable source by 2030 and several domestic investors are seeking investment opportunities in the country’s renewable energy market.
GE Energy Financial Services president & CEO David Nason said: “We are pleased to partner with DBJ and other leading Japanese institutional investors to create this new vehicle in Japan. This renewable energy infrastructure investing platform marries the energy investing and market expertise of GE EFS with strong local partners”
"This renewable energy infrastructure investing platform marries the energy investing and market expertise of GE EFS with strong local partners. It provides an important new source of capital to meet the energy needs of Japan with clean, renewable solar power."
DBJ has been involved for a long time in renewable energy sector and has been actively supporting the expansion of renewable energy by offering risk capital to several wind power, solar, biomass and other projects within and outside of Japan. The bank stated that it will hold limited partner interests in the fund.
Image: GE starts solar fund in Japan. Photo: Courtesy of Pixomar/FreeDigitalPhotos.net.