Activ Solar GmbH, the largest solar developer in Ukraine, is seeking to tap Islamic financing to expand into renewable energy markets in the Middle East.
Solar plants’ predictable and steady revenue streams could be a good fit for the growing Islamic financing market, Activ Chief Executive Officer Kaveh Ertefai said today in Munich.
In Saudi Arabia, Activ is in the process of setting up a venture with a local company that has the “ability to support execution” of solar parks, Ertefai said in an interview on the sidelines of a solar conference in the German city. The developer is also looking at markets including Qatar, Jordan and the United Arab Emirates for growth, he said.
Activ Solar, based in Vienna, has developed the most solar parks operating in Ukraine, taking advantage of the region’s highest subsidies. It has built projects with a combined 450 megawatts, of which 150 megawatts were completed this year, Ertefai said. Activ expects the Ukrainian market to grow “at least” at the rate of previous years even as financing remains challenging, he said.
The developer last year invested in a “triple-digit-megawatt” project pipeline in the U.S. and is “actively looking to expand on that” as it expects the U.S. market to show “healthy” growth in the short to long-term, Ertefai said. Activ is also starting to look at projects in Mexico, he said.
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