Following a modestly sized debut deal in the UK solar photovoltaic (PV) sector last month, Luxembourg-based fund manager Quercus Asset Selection (Quercus) has taken a much bigger plunge.
Quercus has agreed to acquire a portfolio of 21 PV plants along with Progressum – a UK engineering firm specialising in PV – for more than £300 million (€361 million; $491 million).
The plants are to be constructed by Spanish renewable energy firm Bester Generacion during 2014. Quercus and Bester Generacion have formed similar partnerships in various other countries for the construction of PV and wind projects.
Once the plants are built, they will become part of the Quercus Renewable Energy Fund II, a fund managed by Quercus Asset Selection. They will have a combined generation capacity of 254 megawatts (MW).
Last month, Quercus made its first investment in the UK PV market when acquiring a 14MW project in Cornwall, which will be connected to the national grid by March next year.
In March 2012, Quercus invested £2 million alongside the UK Green Investment Bank in an organic waste processing facility built by TEG Group.
Quercus manages SICAV-SIF vehicles whose core business is to invest in renewable energy projects across Europe. The funds currently have total investments worth approximately €350 million.
The larger Quercus group includes Quercus Investment Partners, a London-based adviser to institutions.