This move comes after the Japanese government forayed into the green power market to establish minimum prices in an effort to boost the sector.
In 2012, the Japanese government launched an initiative that guaranteed generating companies a premium for the electricity produced from renewable sources.
Japan’s renewable energy generation capacity for the fiscal year 2012 to March 2013 was around 1.39 million kilowatt, while most of the power generated was from solar energy.
Goldman Sachs has already made investments in renewable energy firms across India and the US.
Meanwhile, Japan Renewable Energy is set to invest JPY13bn ($126.7m) for the development of a solar power facility with an installed capacity of around 40MW.
The proposed solar facility will become operational in January 2015 and is expected to contribute around JPY300bn ($2.9bn) to the solar energy sector.
Tokyo Electric Power will purchase the electricity generated at the solar power plant under a 20-year contract.
