The Abu Dhabi-based sovereign investment fund company, Mubadala Investment Company, is making an investment in Japan. This move is being made through their renewable energy arm - PAG REN I, which is focused on providing solar power to businesses throughout Japan.
Contribution of the UAE to Japan’s Ambitions for Renewable Energy
“At Mubadala, we are happy to be extending our footprint in Japan and the wider Asia-Pacific region together with PAG with our inaugural investment into Japan’s fast growing renewable energy space”, said Hammad Rahman, who is the Head of the Conventional Industries Department in Asia Pacific Region at Mubadala.
Having been in the Japanese real estate business for many years, PAG has set up the PAG REN I, its renewable energy platform. The primary area of service for this platform is the Asia-Pacific region’s developed economies, particularly Japan, that plans on having 108GW additional solar energy by 2030.
To support Japan’s major organizations as they move towards green energy, the - PAG REN I- system will be invaluable. This platform is supported by Japan’s “Framework Agreement for Energy Purchase,” which aims at enabling Japanese companies and institutions to buy renewable electricity directly from producers over an extended period.
Hammad Rahman, Chief of the¬ Infrastructure Division at Mubadala Investment Company, applauds this prospective investment. It’s seen as a step towards reducing imported fuel dependency and cutting carbon dioxide emissions. Rahman, representing Mubadala’s Infrastructure Unit, celebrates the potential investment. It’s a strategy to lessen the reliance on imported fuels and curb carbon dioxide releases, aligning with both local and international emission reduction targets set by Japan. Hammad Rahman from Mubadala Investment Company expressed high hopes for this new investment.
Image: Mubadala Investment Company
“Offering renewable energy solutions mainly to the corporate and industrial sectors is a key focus in our infrastructure plan; we are glad to implement it in Japan considering it has one of the world’s biggest economies which is also among the most developed,” he said.
Following the global RE100 initiative, Japan is second to the United States in the number of companies and organizations with plans for shifting to 100% pure or renewable energy sources.
Following the global RE100 initiative, Japan is second to the United States in the number of companies and organizations with plans for shifting to 100% pure or renewable energy sources.
That major investment projects will take place in the sector of renewable energy infrastructure is good news according to JP Tobin, who is a Co-Founder and CEO at PAG.
He added that their partnership with Mubadala is especially welcome as it demonstrates Japan’s strong commitment towards enhancing its capacity for generating solar power knowing very well that the country has set very ambitious targets in this regard. The Chief Executive Officer further stated that they are excited about these goals and would be happy to chip into any plans aimed at transitioning from fossil fuels to sustainable sources within Asia’s electricity industry.
Mubadala’s Investments in Renewable Energy
Instead of only trying to remove as much carbon as possible in Japan, the new platform known as PAG REN I will also help make sure that the nation attains its energy security targets by changing from relying on imported fuels for power generation to depending on local sources of renewable energy which are cheaper and more reliable.
This investment throws light on Mubadala’s ever-growing portfolio and companies within the renewable and clean energy technologies space that it has across Asia, Europe, and North America. In India, Mubadala acquired shares in Tata Power Company Limited’s renewable energy platform earlier this year to help them reach their target of contributing 30GW (or 6%) to the country’s overall installed capacity for renewables by 2030.
The same year saw Mubadala purchase shares of Skyborne Renewable Energy, the world’s biggest private developer for offshore wind power.
Mubadala Investment Company is a sovereign investment company that is based in Abu Dhabi and is active in the renewable energy sector. The company also backs the global RE100 initiative which is overseen by the Climate Group. To facilitate widespread change to carbon neutral grids across the globe using renewable energy, the company relies on renewable energy sources.