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GE Energy Financial Services raises largest Solar Fund in Japan

GE Energy Financial Services raises largest Solar Fund in Japan

The Fund represents a new renewable energy investment vehicle led by GE for the Japan market and is targeted at JPY 75 billion and has the potential to grow to JPY 90 billion. Anchor Investor is the Development Bank of Japan.

GE Energy Financial Services (GE EFS), the energy investing unit of General Electric (NYSE:GE), has raised a solar energy fund in Japan to invest in Japanese solar power projects. Development Bank of Japan Inc. (DBJ), which used its renewable energy investing experience to help GE EFS structure the fund, has committed as the anchor investor for one third of the interests.

The fund invests in operating projects in Japan, such as the 32-megawatt Kumenan solar plant that began operations in 2016, and in which GE EFS previously held a majority stake. With Japan progressing towards its goal to generate up to 24 percent of its power from renewable sources by 2030, more domestic investors are seeking opportunities in the country’s renewable energy market.

With additional backing by a group of Japanese institutional investors, the fund launched successfully with funding of JPY 46.3 billion. In the third quarter of this year, GE EFS will look to raise additional commitments to bring the fund to JPY 75 billion. Overall, the fund has the potential to increase to JPY 90 billion, expanding opportunities to invest in attractive, operating infrastructure assets.

“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“, said David Nason, President and CEO of GE Energy Financial Services.

SOURCE: Solarserver