Renewable energy has been certified as a compelling market by Goldman Sachs. The bank is investing $40 billion in the renewable energy sector, in several large equity investments. Among them is $1.5 billion in Dong Energy, a Danish offshore wind energy developer, and $500 million in SolarCity, the biggest U.S. installer.

It has also invested in BrightSource Energy, which is about to bring its Ivanpah project, the largest solar power project in the world, into full production. Other investments include First Solar, the largest solar PV manufacturer, and SunEdison, which owns and operates power plants in North America. In Japan, Goldman is backing Japan Renewable Energy with a $3 billion fund and in India, it paid $340 million for a stake in Renew Wind Power, a wind energy business. Goldman projects that the costs of solar will continue to drop as efficiency improves, that renewable energy storage problems will be solved, and that solar power pricing will be competitive with conventional sources without subsidies. You can also bet that Goldman is projecting major profits from its renewable energy investments.

I’m John Howell for 3BL Media.