A GREEN energy firm and AIB plan to raise an estimated €10 million to fund solar-power projects in Spain.

Cork-based Quintas Energy and AIB Wealth Management are seeking to cash in on the generous supports offered to solar-power schemes by the Spanish government.

It is understood that the pair are planning to raise at least €10 million to fund the development of the solar-power projects, which convert the sun's energy into electricity.

Spain is one of Europe's biggest markets for the cells used to produce electricity from solar energy, which are known as photovoltaic cells, and the Spanish state is committed to developing the country as a base for alternative energy.

Quintas and AIB are seeking cash from corporate, personal and pension investors. They estimate the projects could generate a return of about 10 per cent a year.

The Spanish government has guaranteed that any such projects which sought planning permission before September 28th last year will get at least 44 cent per kilowatt hour (kW/h) for the electricity they generate.

This means solar generators that qualify will be paid a minimum of 44 cent per kW/h, even if the general market price drops below this. If it goes above this figure, the generators will be paid at the market price.

Solar generators that do not qualify will only be guaranteed a minimum of eight cent per kW/h.

Quintas has been financing the development of solar-power projects since 2006 and has a base in Seville in southern Spain. The company is involved in a series of projects that qualify for supports.

In August last year it completed a fundraising round that brought in €40 million for the development of solar "farms" in Spain.

It intended using the cash to invest in four farms with a total capacity to generate four megawatts (MW) of electricity.

Last year, the group estimated that the 4MW farm would have a turnover of €4 million a year and give an annual return of 11 per cent over 35 years.