Japan-based leasing and asset-finance company Mitsubishi HC Capital and global investment firm Brookfield Asset Management announced the launch of a new joint venture for a privately held renewable energy company, designed to acquire and operate a diversified portfolio of contracted, operating renewable energy assets across Europe.
The seed portfolio of the new company comprises approximately 570 MW of installed capacity, with an equity value nearing €400m (USD$461 million), and includes wind, solar and battery energy storage assets in Finland, France, Ireland, Spain, Sweden and the UK.
According to the companies, the assets are supported by long-term power purchase agreements (PPAs), with an average remaining contract duration of approximately 10 years. The portfolio is expected to provide stable and predictable cash flows, supported by contracted revenues and resilience across market cycles.
The partners added that the new platform will also evaluate opportunities to acquire additional renewable energy assets in Europe and Australia. Future investments are expected to focus on operating onshore wind, utility-scale solar and battery energy storage projects backed by long-term commercial arrangements similar to those of the seed portfolio.
Hayato Shinada, Senior Corporate Officer, Global Environment & Energy Department, General Manager of Mitsubishi HC Capital said:
“By combining Mitsubishi HC Capital’s financial and investment expertise with Brookfield’s asset management capabilities, we will build and scale our business platform to deliver reliable and sustainable operations. “…” As the importance of renewable energy continues to grow, particularly from an energy security perspective, we will leverage our European platform to expand globally and pursue growth opportunities, driving long-term value creation.”
According to the firms, the joint venture will be jointly controlled by Mitsubishi HC Capital and Brookfield. Brookfield will oversee the new company’s operations, while future asset acquisitions will be subject to the approval of both partners, with each contributing on a pro rata basis.
Ignacio Paz-Ares, Deputy Chief Investment Officer for Brookfield’s Energy group said:
“We are pleased to partner with Mitsubishi HC Capital to launch a scaled renewable energy platform anchored by a diversified seed portfolio of high-quality operating assets. With the potential to deploy significant additional capital into a pipeline of renewable power assets, the platform is well positioned for growth across Europe and Australia.”
