Shanghai Electric has agreed to tie up with a Spanish private equity firm to tap into Europe’s renewables markets.
The state-owned EPC contractor and power equipment maker have formed a joint venture called Tayan Energy with Madrid-based Eland Private Equity, according to a company statement.
The pair plans to deploy about EUR 500m (USD 556m) of capital into investments in solar PV as well as power storage assets. Tayan Energy has identified a solar PV pipeline of about 2 GW in Europe with the majority to be based in Spain, and it will focus on developing these projects in the next three years, according to the statement.
The Shanghai-based company has already set up subsidiaries in Spain and the UK with a focus on developing and operating solar assets across Europe.
Eland Private Equity is a fund manager specialising in renewables project development and related advisory services. The company mainly engages in project investment and divestment with a portfolio of more than 230 MW of renewables projects in Spain and Italy.
In October, the Chinese firm tied up with Eland Private Equity on the acquisition of a PV solar park project in Fraga in the province of Huesca, Aragon, Spain, from local firm Energy Investments.