Renewable Ventures closes $200M for U.S. solar projects

San Francisco-based Renewable Ventures said today it completed its Solar Fund V to finance more than $200 million in new U.S. solar energy projects.
It plans to enable the construction and permanent financing of around 35 megawatts in the next year.

The fund's first endeavor is a 2 MW solar photovoltaic project in Fort Collins, Colo., which will produce energy to be sold to Colorado State University and renewable energy credits to state utility Xcel Energy.

Renewable Ventures, formerly known as MMA Renewable Ventures, is owned by Spanish solar power project developer Fotowatio, which has 130 megawatts of solar projects operating in the United States and Europe, and more than 1,000 MW under development in the United States, Spain, and Italy. Fotowatio is owned by GE Energy Financial Services, Landon Group, and Qualitas Venture Capital (see Fotowatio buys four solar plants in Spain).

Solar Fund V, part of Renewable Ventures’ U.S. growth strategy, is expected to focus on developing and acquiring one to 10 MW commercial, public sector, and utility-scale solar projects.

Other U.S. projects of Renewable Ventures include the solar array at Denver International Airport and the largest solar PV project in North America at Nellis Air Force Base, which Fotowatio acquired when it purchased MMA earlier this year (see Fotowatio acquires solar biz from MMA and Nellis Air Force Base solar installation in pictures).

Solar Fund V, Renewable Ventures' first fund as Fotowatio's U.S.-based subsidiary, is being structured to include debt from John Hancock, a unit of Manulife Financial, and equity from Renewable Ventures and Wells Fargo.

The debt and equity combination is anticipated to allow the fund to seek a broader range of federal government incentives and improve project economics for potential customers such as municipalities, universities, electric utilities and companies.

The Colorado State University project is expected to generate enough solar power to provide more than 10 percent of the university's Foothills Campus electricity needs. The 15-acre solar power plant is to be completed in 2009.