Goldman Sachs Invests in Renewable Energy in Japan

If you’re looking for investments to make, you might want to take a look at what Goldman Sachs is considering. The group has announced plans to invest in Japanese renewable energy projects, which are designed to further gain and utilize electricity from solar and wind-powered generators.

Renewable energy has been gaining more attention from investors as of late, and Japan is likely to soon become the world’s second-largest solar market, just behind China. Solar installations are expected to reach a range from 6.1 to 9.4 gigawatts in 2013, making it a prime location for solar energy investment and research. As such, Goldman Sachs has decided to invest up to 50 billion yen (approximately $487 million) over the next five years, with an additional 250 billion yen of bank loans and project financing to further assist.

Following the Fukushima nuclear plant crisis in 2011, Japan has been decreasing its reliance on atomic power, and instead started looking towards renewable sources. In July, it began offering incentives through feed-in tariffs, which have helped draw the attention of investors and businesses in the industry.

Furthermore, Goldman Sachs has formed the Japan Renewable Energy Co. unit, which is created to plan, design, and operate power plants that use alternative and traditional energy sources. This includes solar and wind power, as well as fuel cells and biomass fuels.

As much as the oil industry insists otherwise, we can’t rely on fossil fuels forever. Looking into cleaner, cheaper energy alternatives is pretty much always a good idea, and if it’s renewable, then we don’t have to worry about it running out on us once we become dependent on it. For all that nuclear power can provide, Fukushima has demonstrated the risks associated with it, and has propelled Japan’s desire for alternative, renewable sources such as wind and solar power. If Goldman Sachs feels this is something worth investing in, then that’s good news for both the industry and the investors.