Pirelli sets up solar power jv with Global Cleantech

MILAN - Pirelli & C SpA unit Pirelli Ambiente said it is setting up a joint venture in the photovoltaic solar energy sector with specialist clean energy private equity fund Global Cleantech Capital.

The venture, called Solar Utility SpA, will be owned 50:50 by the two partners and expects to invest 24 mln eur over the next five years to set up photovoltaic plants with 50 MW capacity, it said.

Solar Utility will install and own photovoltaic plants for owners of commercial and industrial buildings, supplying them with green energy at competitive prices,' it said in a statement.

The venture will sell completed plants to investors, who will be able to get a stable long-term return, supported by government incentives to be handed out over a 20-year period, it said.

Italy's photovoltaic industry is growing at more than 30 pct a year and this trend can accelerate in the next five years, it said.

Global Cleantech is active in a range of clean technologies in Europe and north America, investing in more than 18 companies in last five years, including Norway's Renewable Energy Corp.