GE Energy Financial Services acquires stake in Spain's largest solar power firm

01 August 2008

GE Energy Financial Services, plans to acquire a 32 per cent stake in Spain's largest and most successful solar power project developers, Fotowatio, which owns, operates and is developing around 960 MW of solar projects in Spain, Italy and the US. The Spanish company was created in 2004 to respond to the ambitious renewable energy targets set by the Kyoto Protocol.

The GE unit will invest $235 million to acquire equity and convertible debt in Fotowatio, whose power generation portfolio includes almost 60 megawatts in the Spanish towns of Trujillo, Arroyo de San Serván and Olmedilla de Alarcón; and more than 900 megawatts of projects in development in Spain, Italy and the United States.

Existing investors in Fotowatio comprise investment fund Qualitas Venture Capital and Fotowatio's management.

''During the past two years, Fotowatio has quickly grown into one of Spain's largest operators and developers of solar power,'' said Iñigo Olaguíbel, partner at Qualitas Equity Partners, which manages the Qualitas Venture Capital fund. ''We look forward to working alongside GE Energy Financial Services and Grupo Corporativo Landon to support Fotowatio's expansion in Spain, Italy, the United States and beyond.''

Fotowatio uses solar photovoltaic technology, which converts light directly into electricity, as well as concentrated solar power technology, which uses mirrors and tracking systems to focus sunlight into a heat source for use in a conventional steam turbine. With no fuel cost or emissions, this portfolio will produce clean energy and avoid more than 730,000 tons a year in greenhouse gas emissions compared to conventional fossil fuel technology.

''By facilitating the growth of one of the solar industry's leading developers, this investment gives us immediate access to attractive solar markets in Europe and the United States and will form an important part of GE's broader strategy to become a major player in solar power,'' said Alex Urquhart, president and CEO of GE Energy Financial Services. ''GE has all the right ingredients to succeed in solar: capital, technology, research and ecomagination.''

Ecomagination is GE's program to help its customers meet their environmental challenges while expanding the company's own portfolio of cleaner energy products.