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Solar Fund Reaches 50 Million Euro Milestone and Targets Italy and Greece

Asset management firm Foresight Group has raised 50 million euros ($63 million) from high net worth individuals for a solar project fund centred on Italy and Greece, and hopes to double the size next year.

Foresight said it has already "secured framework agreements, representing more than 250MW, with five Italian construction companies in the solar PV sector", and aims to become a top-five solar investor in Italy by the end of 2009.

Jamie Richards, manager of the Foresight European Solar Fund, told New Energy Finance: "Our target is 100 million euros for the fund, and have had a first close at 50 million euros. We will be marketing it to Middle Eastern investors, who will probably represent the remaining balance."

The fund will invest equity to take 100% control of projects. It will look at solar thermal as well as PV, and the total investment size of the projects owned by the fund is likely to be 500 million euros, if the target fund size is reached.

Richards said that engineering, procurement and construction contractors typically have permitted but not the ability to pull together financing packages. "We will work with several banks to bring debt finance to the table. That has been easier said than done in the last six months, but we have identified two banks that are active at the current time. A number of others are not."

Foresight is planning a second solar fund in the second half of next year, and that one will have a higher proportion of solar thermal projects than the first. It will also have a wider geographical focus, extending to the US as well as Europe, Richards said.