SunEdison and First Reserve will form a joint venture in preparation for the acquisition of up to $1.5bn in current and future SunEdison solar photovoltaic energy projects.

The initial equity commitment for the joint venture of $167m will be contributed by First Reserve and SunEdison over time, SunEdison said in a statement.

SunEdison will manage the project identification and development process, while First Reserve will lead the project financing efforts. Once completed, the projects will be purchased by the joint venture, and operated and managed by SunEdison.

The power generated will be sold for long-term power purchase agreements or feed-in-tariff arrangements.

Under the agreement, First Reserve may raise an additional $150m of equity, which coupled with an increase in project debt financing, could scale the JV up to a total of $1.5bn of solar projects by SunEdison.