First Reserve injects $150m into renewable energy firm

The US private equity group and Spanish renewable energy company have created Renovalia Reserve as part of a long-term investment that will be worth around €1bn. Investment will be made from the First Reserve Energy Infrastructure Fund, which closed at more than $1.2bn earlier this year.

The joint venture marks the US private equity group's first foray into onshore wind farms as part of its exclusive dedication to the energy and natural resources industries. Renovalia Energy's market presence in seven countries and increasing turnover attracted investors. Investment will support Renovalia Energy's core strategy for growth and international expansion.

Debt
No debt was used but the investors plan to add a debt facility later. Final funding is expected to consist of around $300m equity and $700m of debt.

Company
The joint company Renovalia Reserve will own and operate wind farms internationally. Renovalia Energy currently has 259MW of wind-generating capacity in Spain (244MW) and Hungary (15MW). Its 300MW pipeline of projects in Canada, Romania and Spain will more than double the capacity it brings to the joint venture.

Existing and planned wind farm projects will be managed by the Spanish group, which currently operates wind farms, solar energy, photovoltaic and thermoelectric technologies. Renovalia Reserve's board will see equal representation from First Reserve and Renovalia Energy.

People
Juan Domingo Ortega of Renovalia Energy has been appointed chair of the board.

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• Topics
• Southern Europe
• CEE
• Infrastructure
• Expansion
• Spain
• Hungary
• First Reserve Corporation