The Goldman Sachs Group, Inc.
) intends to invest about 50 billion yen ($487 million) in
renewable energy in Japan in the next 5 years. The investment
banking major plans to effectively exploit the demand for
electricity generated from solar and wind power.
The endowment will be made by the Japan Renewable Energy Co.
unit, established by Goldman in Aug, 2012. It was mainly created
to plan, design and operate power plants run on energy from the
sun, wind, fuel cells and biomass fuels.
The above-mentioned investment is consistent with Goldman's
target of spending $40 billion in renewable energy over the next
10 years. The initiative was taken to mark the company's
awareness of environment sustainability and to support the
development and promotion of renewable energy as well as clean
Goldman intends to take bank loans and project financing worth
250 billion yen over a 5-year period to initiate projects that
will cost an aggregate of 300 billion yen.
Japan has the potential to become the second largest market for
solar energy after China by the end of 2013. Commercial and
utility-based projects are expected to enhance solar
installations by almost 6.1 gigawatts (GW) to 9.4 GW in 2013.
There is an extensive awareness of the benefits of green
energy in Japan, as the rising number of solar energy projects in
recent times evince. Consequently, financial markets have
recognized renewable energy as an immensely valuable asset.
GOLDMAN SACHS (GS): Free Stock Analysis
ORIX CORP-ADR (IX): Free Stock Analysis
MIZUHO FINL-ADR (MFG): Free Stock Analysis
SOFTBANK CP (SFTBY): Get Free Report
To read this article on Zacks.com click here.
Japan has reduced its reliance on atomic power generation since
the Fukushima nuclear-plant crisis due to the earthquake in Mar
2011. Since Jul 2012, the Japanese government has been striving
to promote solar energy by offering incentives through renewable
Other financial organizations keen to invest in renewable energy
in Japan include
Mizuho Financial Group, Inc.
Currently, Goldman carries a Zacks Rank #2 (Buy).