Ireland-based Mainstream Renewable Power and the UK's private equity firm Actis have formed a new $1.4bn joint venture (JV) to develop 600MW of wind and solar projects in Chile by 2016.
As per the deal, Actis will invest $290m for a 60% stake in the new JV firm, Aela Energia, while the remaining 40% will be held by Mainstream.
The JV company plans to increase Chile's renewable energy capacity by 3.6%, generating enough electricity for over 131,000 homes.
Mainstream Renewable Power chief executive Eddie O' Connor said: "This is the ideal platform for Mainstream to accelerate the delivery of our 3,500 megawatts of projects in Chile at a significant scale.
"This platform is about meeting the needs of offtakers, particularly large-scale industrial consumers in Chile who need top quality projects and competitive electricity prices."
Mainstream, which has a development pipeline of more than 17,000MW across four continents globally, is currently developing wind and solar projects in Ireland, South Africa, Chile, and Canada.
In 2012, the company won three government tenders in South Africa for 238MW of wind and solar projects, which are currently in construction.
Actis invested nearly $100m in the projects, which are expected to be operational in early 2014.
Image: Under the JV, Mainstream and Actis will develop 600MW of wind and solar projects in Chile. Photo: Courtesy of FreeDigitalPhotos.net.