Hudson commits $100m to Japan, Latin America solar partnership
Hudson Clean Energy Partners has teamed up with independent power producer Sky Solar to develop solar projects in Japan and Latin America. The PE firm will contribute $100 million to the partnership.
A total of $50 million has been earmarked for secondary market opportunities in Japan, with a further $50 million to be invested in the construction of around 128 megawatts of solar capacity in Chile and Uruguay. Hudson and Sky Solar have also agreed to collaborate on expansion into the US solar market.
"We are excited about our partnership with Sky Solar, a company with deep power development expertise and substantial global reach," said Neil Auerbach, founder and managing partner of Hudson, said in a statement. "They have developed a portfolio of high-quality solar projects in attractive markets such as Chile, Uruguay and Japan."
The announcement follows the formation of a similar partnership between Hudson and Dubai-based Adenium Energy Capital. That joint venture will invest $300 million in Japanese solar projects, the first of which was commissioned in May of this year.
Japan has become one of the world's largest solar power markets, partly driven by the government's decision to reduce nuclear capacity in the wake of the 2011 Tohoku earthquake. This has forced the country to seek alternative sources of energy, sparking a solar installation boom buoyed by generous government incentives.
The country is expected to add more than 11 gigawatts of solar capacity this year, trailing only China's estimated 17.5 GW, according to Bloomberg.
Other private equity investors in the space include Equis Funds Group and Partners Group, which led a $250 million investment in Japan Solar - a dedicated solar platform operated by Nippon Renewable Energy. The platform's ongoing capital needs saw Equis raise a $400 million co-investment pool alongside its second fund. It will be used to support Japan Solar and an India and Southeast Asia wind energy platform.
Hudson is a PE firm that specializes in renewable power and clean energy. Sky Solar has developed 237 solar parks with an aggregate capacity of 215 megawatts across Asia, South America, Europe, North America and Africa.
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