Welcome to our exchanges the Goldman Sachs markets update for February 14th.

Every week we sit down with leaders across the firm to get their quick take on the numbers they're watching in markets.

I'm Jake Seward and today's guest is

Jordan Meir of the Renewable Power Group. Welcome Jordan. It's a pleasure to be here.

So before we dive into the numbers, give us a quick intro, explain what you do here at

Goldman.

Absolutely. So I'm the head of investing within the Renewable Power Group in the Consumer

and Investment Management Division. We invest capital on behalf of high net worth individuals and institutions

in solar, wind wind and storage projects.

Okay. What is the big number in the renewable sector that you've been looking at?

1.5 trillion dollars. In the last five years, 1.5 trillion dollars has been invested globally in renewable energy.

Today renewable energy accounts for roughly 10% of the global power mix.

In market experts and folks in our team believe that there's runway to get to 30% by 2040.

In fact, even BP recently upwardly revised its internal forecasts and believes that

renewable energies will displace coal by 2040 is the number one source of power in the world.

What's the number that you think's been getting a lot of attention but doesn't really tell us exactly what we need to know?

26%. For solar projects built in 2020,

the projects receive a $26% dollar-for-dollar federal investment tax credit.

This means that for asset owners like us, when we build a project,

fully 26% of the project CapX is paid back to us vis-à-vis tax credit.

Going forward, this tax credit is slated to step down to 10% by 2022.

However, lost in the policy debate around subsidizing renewables is an important fact.

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