Energy PE Firm First Reserve Forms $1B Wind Venture

Energy private equity firm First Reserve has teamed up with Spanish developer  Renovalia Energy to invest up to $1 billion on European and North American wind power projects.

First Reserve is putting $150 million of its own equity in the venture, writes Reuters, which first reported the news. Fully developed First Reserve and Renovalia could invest as much as $1 billion.

The First Reserve investment comes as project finance banks, pressed by the European debt crisis, are tightening lending, forcing renewable energy developers to secure new sources of capital to finance their projects. Also, in the U.S. the end of some key subsidies, has wrapped the local industry  in uncertainty. This challenging climate hasn’t stopped large, PE investors, including First Reserve, to invest in the sector, attracted by the long-term, stable returns generated by contracted wind and solar farms .

Renovalia oversees 295 megawatts of operating wind-powered capacity, largely in Europe. In the U.S., Canada and Mexico Renovalia has a 494-megawatt project pipeline.

First Reserve is invested in solar developer 9Ren New Energies Group, formerly Gamesa Solar. First Reserve also holds a stake in the 70-megawatt Rovigo solar PV power plant.

We’ve reached out to First Reserve for more details.





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