Renewable Ventures, a Fotowatio company, announced the completion of Solar Fund V to finance more than $200 million of new solar energy projects across the United States.
The fund's first project is a two-megawatt (MW) solar photovoltaic project located in Ft. Collins, Colorado that will sell energy to Colorado State University and renewable energy credits to one of the state's utilities, Xcel Energy (NYSE: XEL).
Solar Fund V is the fifth fund organized by Renewable Ventures and the first as Fotowatio's U.S.-based subsidiary. The fund will focus on the development and acquisition of commercial, public sector, and utility-scale solar projects from one to 10 MW in size.
"With this new infusion of capital, we stand ready to work with businesses, utilities and others to immediately finance, develop, or acquire megawatts of large-scale solar projects in the U.S.," said Renewable Ventures CEO Matt Cheney.
Solar Fund V is structured to include both debt from John Hancock (a unit of Manulife Financial Corporation, NYSE: MFC) and equity from Renewable Ventures and Wells Fargo (NYSE: WFC), and will enable the construction and permanent financing of around 35 MW in the next year.
The combination of debt and equity enables the fund to seek a broader range of federal government incentives, improving project economics for prospective customers such as municipalities, universities, electric utilities and companies.
"Wells Fargo's and John Hancock's continued commitment to investing in renewable energy will allow us to replicate the success of our previous relationships," added Mr. Cheney. "Solar Fund V has been designed to use capital and incentives available under the stimulus program in a way that can accelerate the development of more solar projects and quickly create jobs in the U.S. renewable energy sector."
Fotowatio is one of the world's largest independent solar producers, and has financed, owns, and operates 130 MW of photovoltaic projects in the United States and Europe. The company recently began construction on a five-megawatt solar photovoltaic project in Italy and is developing over 1,000 MW of concentrating solar power and solar photovoltaic projects across Spain, Italy and the United States.
Renewable Ventures finances and operates solar projects of all sizes, from one to 50 MW and larger. The company's recent projects in the United States include the photovoltaic system at Denver International Airport, the largest solar PV project in North America at Nellis Air Force Base, and installations at Macy's, Roche, University of California-San Francisco, California State University-Fresno, Lowe's, and others.