GIC and JRE did not reveal the size of the investment, which is the fund’s first in Japan’s renewable energy market. To date, GIC — one of two sovereign wealth funds under the Singapore government, along with Temasek Holdings — has invested in more than 6 GW of renewables capacity throughout the world.
“We see GIC’s investment as testament to the potential of the Japanese renewable energy market and JRE’s growth strategy,” said Kazuhiro Takeuchi, chief executive of JRE, in an online statement.
JRE was set up by Goldman Sachs in 2012 to invest roughly JPY 300 billion ($2.7 billion) in solar, wind and biomass projects throughout Japan through the end of this year. The company now operates roughly 210 MW of capacity at 34 locations in the country, with 170 MW of additional capacity now under construction. Solar now accounts for nearly 85% of its operational portfolio in Japan.
The Tokyo-based developer has worked on a number of solar projects this year. In February, it revealed that it had started construction on 22.3 MW of PV capacity near Tokyo in Tsuchiura, Ibaraki prefecture.
In June, JRE started building another PV project in Ibaraki prefecture. It expects to complete the 17.1 MW solar array in the city of Inashiki by December 2018.
And in August, JRE revealed that it had completed a 22.09 MW solar installation in Japan’s Tohoku region. All electricity generated by the plant — which was built on a 38.5-hectare plot of land in Rokunohe, Aomori prefecture — is being sold to regional utility Tohoku Electric Power at a feed-in tariff rate of JPY 36/kWh.