General Electric has announced plans to invest over $1 billion per year in clean energy projects.
Given previous results, this comes as no surprise. CEO of General Electric’s Energy Financial Services, David Nason, has said that renewable energy is EFS’s fastest growing energy market, and that the company expects to see “very significant returns” from renewable energy in coming years.
GE is planning to invest mostly in wind and solar because these clean technologies use equipment GE manufactures, such as wind turbines and power inverters. For instance, GE already owns a share of a 550-megawatt solar farm in development, which will use GE inverters. Many wind farms in the United States and overseas already use GE wind turbines.
Most of GE’s existing renewable energy investment (about $10 billion) has been in wind. Around $8 billion has been invested in wind, and about $2 billion in solar power projects in 16 countries.Â General Electric expects its profits from energy investments (not only renewables) to double to almost $800 million per year by 2020.