GE Energy Financial Services has launched a fund to invest in Japanese solar power projects.
It is the largest solar energy fund in Japan, according to GE Energy Financial Services and Development Bank of Japan.
Development Bank of Japan 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 Energy Financial Services previously held a majority stake. With Japan progressing toward 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 ($410 million billion). In the third quarter of this year, GE Energy Financial Services will look to raise additional commitments to bring the fund to JPY 75 billion ($670 billion). Overall, the fund has the potential to increase to JPY 90 billion ($800 million), expanding opportunities to invest in attractive, operating infrastructure assets.
GE Energy Financial Services will hold both general partner interests, managed through a Japanese entity, GE Energy Financial Services Energy Japan GK, and Limited Partner interests in the fund.
GE Energy Financial Services is the energy investing unit of General Electric.