NEW YORK & SAN FRANCISCO--(BUSINESS WIRE)--
Google, Kohlberg Kravis Roberts & Co. L.P. (together with its
affiliates, "KKR"), and Recurrent Energy today announced an investment
in a portfolio of solar photovoltaic (PV) facilities serving the
Sacramento Municipal Utility District (SMUD).
The portfolio of projects is financed with a combination of debt and
equity, which includes a significant equity investment from Google in
addition to equity from SunTap Energy RE LLC ("SunTap"), a new venture
formed today by KKR to invest in solar projects in the U.S.
"The investment is a clear demonstration of solar's ability to attract
private capital from well-established investors like Google and KKR,"
said Arno Harris, CEO of Recurrent Energy. "This transaction provides an
example of the direction solar is headed as a viable, mainstream part of
our energy economy."
The four solar PV facilities included in the transaction will provide 88
MW of power to SMUD and were the first to be awarded as part of the
utility's feed-in tariff program (FIT) introduced in January 2010.
Construction on three of the Sacramento, CA, area projects will be
complete early in 2012, with the fourth coming online later in the year.
The projects are expected to generate nearly 160,000,000 kWh in their
first year of operation, which is roughly equivalent to offsetting the
electricity consumption of more than 13,000 average U.S. homes.
Google's investment in these projects brings its total invested to more
than $915 million in renewable energy projects. The company has invested
in a wide range of technologies, from transmission to the world's
largest wind and solar power tower projects. This represents Google's
first investment in the U.S. in utility scale solar PV.
"Google's commitment to clean energy continues to be a core value for
the company," said Axel Martinez, Assistant Treasurer at Google. "Over
the past 18 months, Google has made investments in the sector that not
only help deploy hundreds of megawatts of sustainable power, but also
enable new and exciting business opportunities. We're excited to be
supporting KKR's entrance into the renewable energy sector in the U.S.
We hope the sector continues to attract new sources of capital."
"Recurrent Energy is a leading solar developer and Google embodies
innovation," said Raj Agrawal, head of KKR's North American
Infrastructure team. "We couldn't be more thrilled to partner with these
two leaders to serve SMUD with a substantial and reliable new source of
renewable energy and to contribute to our country's vast growth in clean
SunTap is KKR's third renewable energy investment in 2011 and its first
renewable investment in the U.S. Other recent transactions include
investments in Sorgenia, a leading French wind park operator and
T-Solar, a leading solar energy company in Spain. Over the last year,
KKR has made five infrastructure investments, which, with the creation
of SunTap, total over $1.5 billion in invested capital.
To establish SunTap, KKR committed $95 million line of equity, a portion
of which will be drawn for this investment. The rest of the equity will
be invested in similar projects.
Google (NASDAQ: GOOG) is a global technology leader focused on improving
the ways people connect with information. Google's innovations in web
search and advertising have made its website a top internet property and
its brand one of the most recognized in the world. For more information,
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a
leading global investment firm with $58.7 billion in assets under
management as of September 30, 2011. With 14 offices around the world,
KKR manages assets through a variety of investment funds and accounts
covering multiple asset classes. KKR seeks to create value by bringing
operational expertise to its portfolio companies and through active
oversight and monitoring of its investments. KKR complements its
investment expertise and strengthens interactions with investors through
its client relationships and capital markets platform. KKR is publicly
traded on the New York Stock Exchange (NYSE: KKR). For additional
information, please visit KKR's website at www.kkr.com.
About Recurrent Energy
Recurrent Energy is a leading solar project developer marketing clean
power to utilities and large energy users. The company is meeting rising
energy demand by building a portfolio of clean power plants located
where they are needed most. Recurrent Energy is a U.S. subsidiary of
Sharp Corporation. Additional details are available at www.recurrentenergy.com.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50111952&lang=en
Andrew Pontti, 415-262-5946
Source: Kohlberg Kravis Roberts & Co. L.P.
News Provided by Acquire Media