Global wind and solar developer Mainstream Renewable Power (MRP) has announced a joint venture with the global pan-emerging market investor Actis to deliver 600 megawatts of wind and solar projects into construction and operation in Chile by early 2016. The joint venture company which is 40% owned by Mainstream and 60% by Actis will purchase the projects, which have been fully developed by Mainstream, at Financial Close. Mainstream will continue to manage the construction and support the operation of the projects on behalf of the joint venture.
Since 2008 Mainstream has taken a leadership position in the Chilean renewable energy market where its local team has been developing an advanced portfolio of more than 3,500 megawatts of wind and solar projects. Globally, Mainstream has a development pipeline of over 17,000 megawatts across four continents and is currently constructing wind and solar projects in Ireland, South Africa, Chile and Canada.
This is Mainstream's second collaboration with Actis. In 2012 Mainstream successfully bid and won three government tenders in South Africa for 238 MW of wind and solar projects which are currently in construction. Actis invested $100 million in the projects which are due to be operational in early 2014.
Commenting on the deal, Mainstream Renewable Power's Chief Executive Eddie O'Connor said: "Mainstream is delighted to be working with such a highly experienced and forward-thinking partner as Actis to deliver this first phase of our operational assets in Chile. This is the ideal platform for Mainstream to accelerate the delivery of our 3,500 megawatts of projects in Chile at a significant scale.
Mainstream has a global pipeline of over 17,000 megawatts of wind and solar projects across four continents and this is something we may look to replicate across our other markets.
He continued: This platform is about meeting the needs of offtakers, particularly large-scale industrial consumers in Chile who need top quality projects and competitive electricity prices. The market is looking for independent power producers with strong financial backing, expert local knowledge and experience in delivering operational assets. This Joint Venture very much ticks all of these boxes."
Paul Fletcher Senior Partner at Actis said, "Actis is very happy to be making our first major investment in Chile. We have an excellent track record in providing conventional and renewable energy in the emerging markets. Our commitment to Latin America, where we have successful investments in educational, financial services and retail, reflects our confidence and ambition for these dynamic markets. Mainstream is a trusted and respected partner and we are pleased to be working together again".