Tokyo to Form 'Public-private Renewable Energy Fund'

2014/05/21 21:50
Shinichi Kato, Nikkei BP CleanTech Institute
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The Tokyo metropolitan government announced May 19, 2014, that it will establish the "Public-private Renewable Energy Fund" in the aims of spreading the use of renewable energy in a wide area and promoting the introduction of renewable energy in Tokyo.

The government also announced that it will look for an operator of the fund. The Public-private Renewable Energy Fund consists of the "Tokyo-area Investment Promotion Fund" and "Wide-area Fund."

Wide-area Fund
For the Wide-area Fund, the government will form an investment limited partnership based on the "Limited Partnership Act for Investment." The scale of the fund will be ¥4 billion (approx US$39.6 million) or more. The government will invest ¥1 billion and look for investors. The fund is targeted at facilities in the service areas of Tokyo Electric Power Company Inc (TEPCO) and Tohoku-Electric Power Co Inc.

Tokyo-area Investment Promotion Fund
In regard to the Tokyo-area Investment Promotion Fund, the form of the fund will not be limited to investment limited partnership at the time of looking for an operator of the fund and will be decided after discussing and examining proposals from applicants.

However, the fund has to be based on a scheme that secures the limited liability of the government's investment. The scale of the fund is about ¥200 million, and investors in the Tokyo metropolitan area can invest in it.

As for renewable energy-based power generation businesses in Tokyo, which are expected to be difficult to commercialize, the government expects that the Tokyo-area Investment Promotion Fund and Wide-area Fund will be involved in businesses in a unified fashion. And the two funds will be commercialized by the same operator.