GE Invests in Japan's Renewable Energy Power Market

As part of GE’s plan to invest over $1 billion annually in renewable energy projects, today the company announced that its investment arm, GE Energy Financial Services, has funded a 32-megawatt solar photovoltaic power project in Japan.

Located in the prefecture of Okayama, the project, called Kumenan, has started construction and is expected to reach commercial operations in the first quarter of 2016.

“Our investment in Kumenan advances our global growth into new markets with a strong risk-return profile,” said David Nason,  CEO of GE Energy Financial Services.

With approval by Japan’s Ministry of Economy, Trade and Industry, Kumenan will sell power to a regional utility through a 20-year power purchase agreement at a fixed tariff rate.

With Japan looking to diversify its power generation mix, it has set a goal of producing about 20% of its power from renewable sources by 2030 and implemented a feed-in tariff which attracts investments.  Nason noted that Kumenan helps Japan meet its renewable energy targets and sets the stage for future investments by the GE unit.

GE Energy Financial Services has made project investment commitments of $1.8 billion in equity and debt in more than one gigawatt of solar power projects worldwide. The business unit also intends to finance Japan’s largest solar project, in Setouchi, expanding its foothold in the region.


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