Shunfeng commits $74m in Japan power project PE fund

According to a regulatory filing, Shunfeng is the sole LP in the fund, which will have a standard 10-year life cycle. It will invest in power projects with a combined capacity of 100 megawatts. Shunfeng - which makes solar photovoltaics (PV) in addition to building and operating solar parks - aims to use the investment to help expand its solar energy business overseas.

In the wake of the 2011 Tohoku earthquake, and subsequent Fukushima nuclear crises, Japan has increasingly turned to renewable energy as it looks to fill the gap left by its closed nuclear plants.

Renewables currently account for about 10% of the country's total energy mix but the government wants this to rise to at least 20% by 2030, with solar playing a significant role. As such investments in alternative energy in Japan have soared, jumping 80% to $35.4 billion last year, contrary to the global trend which saw investments fall by 14%.

Goldman Sachs plans to pump JPY50 billion into the sector over the next five years, while UBS and GE Capital are targeting domestic operators and Macquarie Capital has formed a joint venture with local engineering firm Maeda Corp. to focus on infrastructure and renewable energy projects.

Earlier this year, a consortium led by Equis Funds Group and Partners Group announced plans to build a brand new utility business in Japan.

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• Topics
• North Asia
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• Japan
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