Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

The Goldman Sachs Group, Inc. (GS - Analyst Report) 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 technology.

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.

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 tariffs.

Other financial organizations keen to invest in renewable energy in Japan include SoftBank Corp. , ORIX Corporation (IX) and Mizuho Financial Group, Inc. (MFG - Snapshot Report).

Currently, Goldman carries a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E-HOUSE CHIN EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTL CONS AI ICAGY 33.30 +5.38%