Actis, Mainstream Renewable Power form $1.4bn renewable venture in Chile

UK-based private equity firm Actis has forged a $1.4bn joint venture with Mainstream Renewable Power to develop wind and solar projects in Chile by 2016.

The projects that are to be undertaken by Mainstream’s Chile subsidiary Aela Energía are estimated to have a capacity of 600MW.

As per the terms of the arrangement, Actis is set to invest $290m to acquire majority stake of 60% in Aela, while Mainstream will hold the remaining 40%.

Commenting on the alliance, Mainstream Renewable Power chief executive Eddie O’ Connor noted that with this transaction in place, the company could undertake the work of its first phase of project aimed at generating 3,500MW of power capacity from wind and solar projects in Chile.

"Mainstream has a global pipeline of over 17,000 megawatts of wind and solar projects globally and this project is something we may wish to replicate across our other markets," added O’Connor.

"We are delighted to be working with such a highly experienced and forward thinking partner as Actis."

The companies claimed that Aela Energía will boost the country’s clean energy capacity by 3.6% and can power more than 131,000 households.

The collaboration follows a similar South African alliance between the two earlier in 2012, whereby Actis invested $100m for 238MW of wind and solar projects, due to be operational by 2014.

Actis senior partner Paul Fletcher remarked: "Actis is very happy to be making our first major investment in Chile.

"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," added Fletcher.