By Nina Chestney
LONDON (Reuters) - Europe-based renewable energy investor Glennmont Partners plans to enter the U.S. renewables market for the first time via a joint venture with solar developer GreenGo Energy US to develop over 1 gigawatt of solar and storage projects.
Glennmont and GreenGo Energy US, a subsidiary of GreenGo Energy Group, will develop both combined and stand-alone solar photovoltaic and energy storage projects with the first projects expected to come online in 2025.
The U.S. renewables market has become increasingly attractive for investors since the $430 billion Inflation Reduction Act was introduced this year. The huge green subsidy package has introduced production tax credits for nuclear and solar power and investment tax credits for energy storage.
Dries Bruyland, head of U.S. at Glennmont Partners, said the act also provides long-term stability for investment over the next 10 years.
"This deal with GreenGo ensures Glennmont is well-placed to capitalise on the vast opportunities in the U.S. for the deployment of solar and storage right now as we work to accelerate the energy transition in new markets," he told Reuters.
The firm declined to disclose the value of the deal.
To help meet climate targets, many countries are providing incentives to promote the development of renewable energy sources such as solar and wind.
Energy storage is seen as essential in the energy transition as it can compensate for shortfalls in generation from intermittent renewables and be released when there is high demand.
Glennmont Partners is one of Europe’s largest fund managers focusing on investment in clean energy infrastructure. Owned by infrastructure equity firm Nuveen, it has around 3.8 billion euros ($4.04 billion) of assets under management across Europe.
($1 = 0.9398 euros)