First Reserve Corporation has expanded its year-old joint venture (JV) with Renovalia Energy, teaming up with the independent power producer (IPP) for a wind farm investment in Mexico.
As ‘Renovalia Reserve,’ First Reserve and Madrid, Spain-headquartered Renovalia invested in a 90-megawatt (MW) wind farm in Oaxaca, according to a press release.
In addition, Renovalia Reserve purchased second wind farm, a 138MW operation in Oaxaca “expected to be fully operational in early 2014,” the press release said.
First Reserve, a private equity firm headquartered in Greenwich, Connecticut, carried out the investment via its First Reserve Energy Infrastructure Fund I (FREIF I).
Renovalia Reserve launched in December 2011 with a $150 million infusion from First Reserve. The Oaxaca deal marked the first in Mexico for Renovalia Reserve. The joint venture has been active in Spain and Hungary.
Renovalia Energy itself has been “present in Mexico since 2007,” according to its chief executive, Jaime Galobart. The Oaxaca region, located in the south of Mexico, has a ‘historically robust wind resource,’ First Reserve noted.
FREIF I is the maiden energy infrastructure offering from First Reserve. The fund closed with $1.23 billion in May 2011.
The California State Teachers Retirement System, Main Public Employees Retirement System and Teachers Retirement System of Texas are invested in FREIF I.