Abu Dhabi's clean technology company Masdar and the Development Bank of Japan are creating a joint investment vehicle to buy into renewable energy projects in the developed world.
The vehicle will be used to buy solar and wind power plants in countries that are members of the Organisation for Economic Cooperation and Development, with the US and Europe a particular focus, Masdar announced yesterday.
Projects with a generation capacity of up to 1 gigawatt have already been identified as potential targets. "Given the lack of financing available to fund operational renewable energy projects, it is an opportune time to invest in projects that can provide stable returns to Masdar Capital and Development Bank of Japan," said Sultan Al Jaber, Masdar's chief executive. The deal was signed yesterday at the opening day of the World Future Energy Summit in Abu Dhabi.
The two government-controlled entities will hold an equal share in the investment platform.
Masdar will operate its share of the venture via its private equity arm Masdar Capital. The investment vehicle will buy minority stakes in existing renewable energy projects.
Masdar Capital currently has US$540 million (Dh1.9 billion) worth of assets under management. "Partnerships are a critical part of Masdar's business model as we look to collaborate with the best partners to diversify our future energy mix," said Mr Al Jaber
"Masdar typically looks to work with those who have strong domain knowledge and a consistent and extensive track record."