Monday, January 12, 2009

Starwood Energy buys stake in N.J. solar power firm

By Efrain Viscarolasaga

Starwood Energy Group Global LLC, a  private equity division of Greenwich, Conn.-based Starwood Capital Group Global LLC, has acquired a majority interest in New Jersey-based solar power developer Nautilus Solar Energy LLC.

Financial terms of the deal were not disclosed. The deal is expected to provide capital for the future growth of Nautilus Solar and includes a $50 million commitment for future Nautilus Solar projects, according to officials.

Founded in 2006, Nautilus Solar develops, constructs, finances, owns and operates distributed generation and utility-scale solar electric systems. The company boasts seven solar retail projects in operation and four projects under construction in New Jersey and Connecticut. The company also reports a project pipeline of more than 500 megawatts of solar capacity over the next two years.

According to officials at Starwood Energy Group, the investment “significantly expands” the group’s focus on solar energy. The deal also adds expertise to Starwood Energy Group’s partnership agreement with Lockheed Martin Corp., aimed at developing utility-scale solar generation projects in North America and signed in late 2007. Nautilus Solar personnel are working closely with Starwood Energy on its solar generation projects with Lockheed Martin, according to the company.

Founded in 2005, Starwood Energy has invested in seven projects in the power and energy generation sector, with an estimated enterprise value of $4.9 billion, according to company documents. Among its investments are the The Green Line Project, a 660 megawatt undersea transmission cable between Maine and Boston (currently under development), and the Hudson Transmission Project, a similar transmission line between Ridgefield, N.J. and midtown Manhattan.