AES Corp and Riverstone Holdings committed up to $1 billion as part of a new joint venture to develop a global platform of utility-scale solar photovoltaic projects.
      The joint venture, called AES Solar, will receive up to $500 million from each firm over five-years.
      "Renewable energy is an increasingly significant part of AES's overall portfolio and currently accounts for 20% of our global generation capacity, said AES CEO Paul Hanrahan.
      "Solar is a natural extension of our business, much as wind generation has been and we see tremendous opportunity for growth in this market.
      The business will follow the traditional IPP and wind business growth models by initially focusing on developments and projects in countries offering the most attractive tariffs.
      As the costs of both PV panels and installation come down, AES Solar will look to expand into other countries with appropriate market incentives, with the goal of "grid parity" -- being competitive with conventional fuels.
      "Because of its scale, this joint venture has the potential to change the fundamental economics of solar power," said Ralph Alexander, Riverstone managing director.
      "The timing is right for this project given the spread of renewable power standards around the world, high energy prices and the continued progress of the solar PV industry to improve performance and reduce costs."