BlackRock Real Assets makes first solar investment in Taiwan
BlackRock Real Assets has entered into an agreement to acquire the entire equity interest in a solar portfolio comprising 28 projects in Taiwan
BlackRock Real Assets has entered into an agreement to acquire the entire equity interest in a 59MWac / 70MWdc solar portfolio comprising 28 projects in Taiwan from J&V Energy Technology Co (J&V Energy), a leading solar energy producer headquartered in Taipei.
The assets were acquired through a private fund managed by BlackRock Real Assets that invests in wind and solar assets globally. The transaction marks the team’s first renewables investment in Taiwan, and first-ever floating solar acquisition.
The portfolio consists of operating and construction projects expected to be fully operational in 2019, with New Green Power (NGP), a leading solar developer and operator, continuing to provide engineering, procurement and construction (EPC) as well as long-term operational and maintenance services. The portfolio offers stable and long-term income for investors on the back of securing attractive 20-year feed-in-tariff (FIT) contracts with an investment grade off-taker.
The Taiwanese authorities are targeting an installed base of 25GW of renewable power by 2025 and solar technology will play a key role in shaping Taiwan’s energy future.
Charlie Reid, Portfolio Manager of the BlackRock Renewable Power investment team, said: “We are delighted to partner with J&V Energy and NGP to make our first renewables investment in the Taiwan market, on behalf of our clients. This transaction demonstrates our commitment to the Asia Pacific region, a strategic priority for our US$5 billion global investment platform.”
Leo Seewald, Head of BlackRock Taiwan, said: “We are pleased to add renewable power capabilities to our local investment platform and strengthen BlackRock’s presence in Taiwan, while supporting the market’s transition to renewable energy.”
BlackRock Real Assets has invested in more than 190 solar and wind projects over the last few years, representing close to 6.6 gigawatts of capacity, able to generate enough clean energy to power more than 4.5 million homes per annum. This acquisition reinforces BlackRock’s commitment in the solar space, particularly in Taiwan – a growth market for renewables.
Kai Tan, Chief Executive Officer of J&V Energy, said, “The agreements with BlackRock and New Green Power are an important step in our portfolio strategy and demonstrate the growing maturity of Taiwan’s secondary market for renewables. The arrangement frees up capital for further investments and enables J&V Energy to continue to originate additional opportunities to create long term value for our shareholders.”
Jerome Tan, Chief Investment Officer and Head of Asset Management of New Green Power, said, “As the portfolio’s developer, EPC, O&M and asset manager, this transaction is a testament to the quality and proven expertise of NGP’s end-to-end capabilities. We are very excited that a global leader like BlackRock has partnered with NGP for their first investment in the Taiwan solar market. We look forward to building on our successes in the solar development space while furthering Taiwan’s commitment to renewable energy and green jobs.”