New renewables firm plans €150m fund

Environmental Finance

12 June 2013

JOhn Mullins and Stephen Nolan

A new solar photovoltaic (PV) asset management business has unveiled plans to raise €150 million ($199.1 million) for its inaugural fund.

 

Dublin-based Amarenco has been founded by John Mullins, the former CEO of Ireland’s main gas supplier and distributor, Bord Gáis.

The firm is “in the later stages of finalising arrangements” for its Global Solar Income Fund, which will initially invest in assets in the South of England and France

The fund, which will only take majority stakes, is targeting an “attractive and realistic” 6% annual yield over a ten-year time frame, said Mullins, the firm’s CEO.

“We have contractual arrangements to secure assets for the full fund amount with experienced developers and owners’ positions in over 200MW of solar power projects in the UK and France,” he added. “As experienced international energy executives, we will bring solid investment opportunities to the market, which should provide secure and stable income from solar power in the UK and France for many years to come.”

According to Amarenco’s website, it plans to ramp up its production from a planned 200GWh this year, to 3TWh by 2017, and will expand to other regions, such as North America. It says it has €1 billion of investment capacity.

The Global Solar Income Fund, which is awaiting regulatory approval, plans to directly purchase large-scale solar projects installed, or at financial close, in return for equity.

The investment criteria include:

  • high quality developers and contractors with a proven track record;
  • established PV technology;
  • fully permitted projects with land access rights, grid access and connection; and
  • creditworthy power purchase agreements.

Irish independent wealth-management and stock-broking firm, Davy, has been appointed investment manager for Amarenco, while Irish private wealth services firm DHKN and Investec Bank are providing financial and origination support.

Another Irish owned company, Quintas Energy, will provide physical asset management solutions to each invested solar park portfolio.

The company aims to employ a total of 20 staff and will also have an office in London.

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