Avelar Energy in talks to raise up to $600 mln for renewable energy
MOSCOW. Nov 20 (Interfax) - Avelar Energy Group, a division of Russia's Renova Group, is holding negotiations with banks to borrow $500 million-$600 million for solar power projects, company president Igor Akhmerov told reporters on the sidelines of a renewable energy conference organized by business daily Vedomosti.
He said the company's shareholders are also investing $100 million of their own money in construction of solar generation facilities in the first stage.
The company plans to build about 99 MW of solar generation in 2014-2017. The capacity was selected by NP Market Council in a competitive selection of projects that will get government support.
Negotiations to raise financing are being held with all leading banks, and there are also plans to raise funding from the European Bank for Reconstruction and Development and International Finance Corporation, Akhmerov said. The company intends to raise money from banks with experience investing in energy and experience working in Russia, he added.
"When we use up this amount, we'll think about the rest. For now, this is enough to carry out the first stage," Akhmerov said. Rusnano and Renova plan to build 500 MW of renewable power generation capacity by 2020, he said.
The Renova Group is prepared to invest up to a fifth of the proceeds from the sale of its stake in oil company TNK-BP in the electricity sector, the group's principal owner, Renova's owner, Viktor Vekselberg, has said. "About 15-20% will be channeled into the electricity sector overall," Vekselberg said, adding that he was "not prepared to name specific figures."
Renova was due $7 billion of the $28 billion that state oil major Rosneft paid for the AAR consortium's 50% stake in TNK-BP . Therefore, Renova could invest $1 billion-$1.5 billion of this money in the electricity sector.
Renova's principal electricity division is IES Holding, which owns strategic stakes in generating companies TGK-5 , TGK-6 , TGK-7 and TGK-9 . Renova also owns Hevel Solar and Avelar Energy, which work on solar power projects.