Goldman Says It Could Exceed $40 Bln Target

Goldman Sachs Group Inc. said it could exceed a target set in May this year for $40 billion investment in renewable energy over the next decade.

Speaking to Clean Energy and Carbon Brief, Kyung-Ah Park, head of its environmental markets group said that although the market remains “challenging,” the firm should be able to achieve the target, “and then some.” Stuart Bernstein, head of the firm’s clean technology and renewables group called the target “ambitious, yet achievable”.

In 2005, the investment banking firm pledged to invest and finance $1 billion of environmentally friendly projects. It was then that it acquired little-known Zilka Renewable Energy [a deal estimated to have been worth between $400 and $500 million], renaming it Horizon Wind LLC. Two years later, Goldman sold the Houston-based wind company to EDP-Energias de Portugal SA for $2.2 billion, a reported gain of $900 million after taking account of investment into the business. This made it one of the most profitable deals ever in clean energy private equity. Since then the bank has exceeded its original pledge with close to $4 billion in investment and $24 billion in financing from 2006 to the end of 2011.

Q: What should investors really make of the $40 billion commitment?

Park: It’s an extension of our long-standing commitment to the sector and to play a more catalytic role. The target encompasses both our financing activity and investments that are led by Stuart [Bernstein] and his team, as well as capital investments from other areas of the firm. It does not mean that we’ve set aside a $40 billion separate pool of capital. We have not delineated specific targets by technology or by year… Read more here>>

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