New €150 million fund for solar energy projects

The former CEO of Bord Gáis, John Mullins, has announced the launch of a renewable energy asset management business, Amarenco, which is to set up a €150 million fund for investment in solar energy.

The regulated fund is to focus initially on solar installations in the South of England and France and is to target an annualised yield for investors of 6 per cent and a share of the residual value at its retirement. The target investors are pension funds, asset managers, and high net worth people. Mr Mullins also said he believed that between €30 million and €50 million was accessible in the Irish retail market. The minimum investment is €100,000.

Amarenco has six employees and is to grow that number to 20, Mr Mullins said. It has offices in Dundrum, Dublin, but intends to move to the IFSC.

Technological advances had greatly reduced the cost of solar photovoltaics, and this combined with the rise in the price of fossil fuels have added to the business case for the sector.

Mr Mullins is CEO of the new company. The other members of the management team are: Kevin Lynch, chief investment officer; Alain Desvigne, chief operating officer; Nick Howard, chief treasurer; and Kevin McNamara, chief financial officer. Mr Lynch and Mr Desvigne have extensive experience in solar project developments, Mr Howard has 20 years experience in raising finance for renewable energy projects, and Mr McNamara is a former chief financial officer with ESB International.

Mr Stephen Nolan, executive co-ordinator with the Green International Financial Services Centre, Dublin, said Ireland's experience in finance and the alternative energy sector was behind the growth in businesses such as Amarenco here.