Goldman Sachs to Invest in Japan Green Energy

TOKYO (Nikkei)--Goldman Sachs plans to pour about Y300 billion ($2.9 billion) into Japanese renewable energy projects over the next five years, having determined that a long-term scheme here to buy renewables at fixed rates will provide a stable source of income, the Nikkei reported in its Monday morning edition.

The U.S. investment bank recently set up a wholly owned renewable energy management firm in Tokyo. Its first move will be to invest in megasolar facilities in Ibaraki Prefecture that will be built for Y13 billion and provide a total of 40mw of power, enough to supply 12,000 households.

Land has already been acquired for the project and construction is to commence as early as next month, with operations slated to begin in 2015. The power will supplied to Tokyo Electric Power Co. (9501.TO) over an expected span of about 20 years. The Goldman unit will invest several billion yen with the remainder financed by Shinsei Bank (8303.TO) in the form of loans.

Goldman Sachs plans investments of up to Y300 billion in Japanese green energy, including wind power, by 2018. No project will be managed by the Goldman Sachs unit alone. The investments are seen being made jointly with other firms. The plan is to raise the unit's share of capacity to 1,000mw.