AES and Riverstone Launch Solar Joint Venture; Target $1 Billion Investment (utility scale PV)

[OKIsItJustMe]

Business Wire

March 25, 2008 09:15 AM Eastern Daylight Time

AES and Riverstone Launch Solar Joint Venture; Target $1 Billion Investment

New Company Will Develop A Global Platform Of Utility-Scale Solar Photovoltaic Projects

ARLINGTON, Va. & NEW YORK--(BUSINESS WIRE)--The AES Corporation (NYSE:AES) and Riverstone Holdings LLC today announced that they have committed up to $1 billion as part of a new joint venture to develop a global platform of utility-scale solar photovoltaic (PV) projects. Under terms of the agreement, AES, one of the world’s largest global power companies, and Riverstone, a New York-based energy and power-focused private equity firm, will each provide up to $500 million of capital over five years to invest in PV solar projects around the world.

The jointly owned entity, to be called AES Solar, will seek to become a leading global developer, owner and operator of utility-scale solar installations that will be connected to the power grids that supply homes and businesses. These installations, ranging from fewer than two to more than 50 megawatts in size, will consist of land-based solar PV panels that capture sunlight and convert it into electricity, feeding the power grid directly.

The business will follow the traditional independent power producer and wind business growth models by initially focusing on developments and projects in those countries offering the most attractive tariffs. As the costs of both PV panels and installation come down, AES Solar will look to expand into other countries with appropriate market incentives, with the goal of “grid parity” – being competitive with conventional fuels.

“Renewable energy is an increasingly significant part of AES’s overall portfolio and currently accounts for 20 percent of our global generation capacity,” said Paul Hanrahan, AES President and Chief Executive Officer. “Solar is a natural extension of our business, much as wind generation has been, and we see tremendous opportunity for growth in this market. We look forward to partnering with Riverstone in this joint venture, to make solar power a viable energy source worldwide.”

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