Large-scale renewable energy investor from the UK, Low Carbon is expanding its presence in North America with the launch of a joint venture (JV) with Canadian utility scale solar installer NU-E Corp to target 1.2 GW renewable energy capacity in Canada by 2030.
Low Carbon said the partnership has the potential to grow to a multi-GW level across different renewable energy technologies in Canada.
The JV will focus on greenfield solar PV, onshore wind and battery storage projects. It plans to start with an existing 600 MW PV pipeline in Alberta province. All these solar facilities are at early-, mid- and late-stage development. Initial project under this 600 MW portfolio is expected to be commissioned in 2024.
Financial incentives promised under Canada's Budget 2023, devised on the lines of the Inflation Reduction Act (IRA) of the US, are a puller for Low Carbon (see Canada Comes Out With Its Own IRA).
"In addition to this being a first-of-a-kind partnership for Low Carbon in North America, the JV with NU-E Corp ensures we are well positioned to act on the new investment incentives for Canadian renewable energy projects," said Low Carbon's Managing Director of Investments North America, Ed Shelton.
"These recent incentives will help provide long-term stability for investment and open up further opportunities for renewables development in Canada that support its net-zero ambitions," he added.
Low Carbon's overarching ambition is to grow its renewable energy capacity to 20 GW by 2030. It recently raised £400 million capital commitment from Massachusetts Mutual Life Insurance (MassMutual) to support its projects across the UK, Europe and North America. According to the management it provides liquidity for the company's large-scale project pipeline until 2025.
Earlier in May 2023, Low Carbon raised £310 million from international lenders for the construction of 448 MW solar capacity in the UK and the Netherlands (see Low Carbon Raises £310 Million For PV).
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