Japan Joint Venture to Invest $1 billion in Clean Energy and Infrastructure

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Written By: Jeremy Feakins

Macquarie Capital and Maeda Corp have announced a new joint venture to invest over $1 billion in clean-energy projects and infrastructure by the end of the year.
3650636340A new venture between Macquarie Capital, one of Japan’s leading providers of investment and funds management services, and Tokyo-based building and engineering firm Maeda Corporation will initially focus on building a large-scale solar power plant in Japan as the nation increases its demand for clean energy.

The joint venture’s goal is to target 300 megawatts (MW) of generation capacity and 100 billion yen ($1.02 billion) of investment into renewable-energy businesses by the end of 2016. For every project, the venture will invest in separate special-purpose vehicles to increase project financing from lenders. As the joint venture matures, the companies intend to seek investments in wind-power generation, toll roads, and airports.

The companies plan to make use of Japan’s renewable-energy subsidies, introduced in 2012, to increase the venture’s success. They also plan to include clean-energy resources in current rebuilding-infrastructure projects, repairing damage from the 2011 earthquake and tsunami. Meanwhile, the 2020 Tokyo Olympic Games also opens up doors for additional clean-energy projects.

According to the Wall Street Journal, the launch of the new venture is in response to the proposal from billionaire Masayoshi Son, Japan’s third-richest man and founder of Asia’s leading Internet venture, Softbank, that renewable-energy sources should replace Japan’s nuclear generation.

With the Asian Development Bank’s recent report estimating the cost of inaction against the threats of climate change to East Asia’s vulnerable sectors (including agriculture, infrastructure, and coastal protection) at $864 billion, the new venture acts as an incentive or renewable-energy sources across the region.