Tokyo to set up $97M renewable energy fund

The Tokyo Metropolitan Government plans to set up a fund of around $97 million to invest in electric power generation projects that use renewable energy.

The Tokyo government plans to contribute about $9 million to the fund and solicit contributions for the rest from the private sector both at home and abroad.

New Tokyo Gov. Yoichi Masuzoe has set a goal of boosting the percentage of renewable energy in the Japanese capital's total electricity consumption to 20%.
The renewable energy fund will be the first step toward achieving this target.

Investments will be primarily in wind power generation projects in the northeastern region of Tohoku, which bore the brunt of the massive earthquake and tsunami of March 11, 2011.

The Tokyo government plans to set aside about $9 million for the fund in its supplementary budget plan for the next fiscal year, which starts on April 1.

The plan calls for selecting a private company with investment experience and know-how in energy-related areas from among applicants to be entrusted with the management of the fund. Its duties would also include choosing investment projects.

The money to be contributed to the fund by the Tokyo government will be spent on power generation projects within Tokyo as they could prove unprofitable due to high land costs and other factors. Funds contributed by the private sector will go to high-yield projects covering wider areas.