Dublin-based Mainstream Renewable Power plans to focus on opportunities in Chile and Brazil in addition to other markets in North America, Australia and Europe, company representative Rachel Drury said at the 5th Energy Integration Congress hosted by BNamericas and IBC in Santiago.
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Founded in early 2008, the company will focus initially on wind farm development and intends to develop greenfield projects from the ground with local partners before selling the project to pension funds.
Mainstream will continue to operate and maintain the projects after the sale.
"We'll have three streams of revenue coming into the company including funds from the sale of the asset, maintenance and operations fees, and a performance fee," Drury said.
"We see the boom [in renewable energy] about to happen in these markets. We are confident the potential is there and we're going to get in ahead of the curve before everyone comes and it gets too competitive," Drury added.
Mainstream has an initial agreement for a new wind farm in Chile with local Chilean firm Andes Energy and the project could be delivered by 2010, Drury said. The two companies could develop an initial pipeline of 240MW, according to the company website.
"Working in partnerships has proved in the past to be quite successful for us and we see it as the key factor in getting our planning permissions and our projects built," Drury continued.
Mainstream, meanwhile, already has relationships with turbine providers including GE, Siemens and Mitsubishi.
"The banks don't want you to be delayed by 12 or 18 months and a key factor in getting financing is the turbine supply contracts," Drury said. "Developers are having to wait for 18 or 24 months to get turbines, but we are fortunate we have good agreements in place with our providers to ensure the delivery of turbines."
Mainstream intends to sign initial power sale agreements for a certain amount of each project's power but also likes to take on a bit of risk and sell part of the power on spot markets when prices are increasing.
The company has not ruled out acquiring projects already under development, although it prefers to start from the ground up.
"Wind energy is proven and it will be driven by emissions reduction targets, energy security, growing power demand and economic development," Drury added.
The company is mapping Chile's wind potential to look for more projects and will eventually look at small hydro and solar power projects.
"Solar power is feasible with high oil prices," Drury said. "We'll start looking at the market and do initial studies, but we'll hold off for 5-10 years. But with potential government support or if power prices remain high, then it could be feasible."
Mainstream raised 72mn euros (US$98mn) earlier in the year from Barclay's Capital for a 14.6% stake in the company. Mainstream has offices in Berlin, Chicago, Dublin, London, Santiago, Sydney and Toronto.
