Private equity firm creates €600 million solar energy group

First Reserve Corporation, a private equity firm specializing in the energy industry, has said it will invest €600 million over five years into developing renewable energy generation assets.   The private equity firm recently acquired Gamesa Solar, a major solar energy company in Spain, for €261 million as well as Italian PV power plant specialist Ener3. First Reserve has created a European renewable energy group with the ability to deliver solar capacity of up to 400MW in southern Europe over the next four years. The group expects that two thirds of this capacity will be delivered to customers, on a turnkey project basis, while the remaining capacity will be developed on its own account.

"Gamesa Solar has delivered 40MW of photovoltaic projects and with an additional 50MW to be completed within 2008 is a major solar developer and turn-key contractor,” said Paolo Pietrogrande, who will become CEO of the new group. “Its leading position in the Spanish market provides an excellent foundation to exploit the attractive solar development opportunities that exist in Southern Europe and the Mediterranean. Over the next four years we will invest euro 600 million into developing renewable energy generation assets. Our international team has relevant experience in development, construction and operation of wing, small hydro, biogas and solar-based power generation. We are delighted that 20 senior managers will be part owners of the new group, reflecting their commitment to its success."

Mr. Pietrogrande previously held positions as CEO of Enel GreenPower, Chairman of Atmos Holding and a Director of Trinergy Plc, and has an established track record of successfully leading renewable energy companies.

Antonio Cavalle, who will become Managing Director of Gamesa Solar and has led the company to its current leadership position in Spain, added: "Combining the leading Spanish solar energy business with an established Italian renewable developer and engineer paves the road to further commercial growth in the most promising European market."