D.E. Shaw & Co., a $33 billion hedge fund, and Bright Plain Renewable Energy LLC acquired a 24-megawatt solar farm about 50 miles (80 kilometers) south of Las Vegas.
D.E. Shaw, which also provided development capital, is majority owner of the Searchlight solar farm, Bryan Martin, a managing director at the New York-based company, said today in an interview.
American Capital Energy Inc., the original developer, will retain a small stake. It will be built by Signal Energy, which is expected to complete construction this year.
Hedge funds and private equity firms this year have increased investment in renewable-energy projects, which provide consistent returns from selling power.
NV Energy Inc., acquired last year by Berkshire Hathaway Inc.’s MidAmerican Energy Holdings Co. unit, agreed to buy electricity from the solar farm under a 20-year contract.
“It’s a pretty straightforward project in our portfolio of solar investments,” Martin said. “We like that it’s in Nevada, a new market for us, and we’d like to do more there.”
To contact the editors responsible for this story: Reed Landberg at email@example.com Will Wade, Jim Efstathiou Jr.