Solar Energy Infrastructure: Our Investment Focus.
Energy Market Development
The fund invests in solar infrastructure during a period of significant energy market development. Global investment in clean technology reached $2 trillion in 2024* with Portugal targeting to increase its solar capacity from 3.9 gigawatts in 2023 to 9 gigawatts in 2030, and Spain targeting 76GW.
Key market drivers include evolving energy policies, technology cost trends, and infrastructure modernization initiatives across multiple regions. While these market developments provide context for our investment strategy, fund returns are determined by multiple factors including project execution, market conditions, and regulatory changes.
*IEA World Energy Investment 2024 Report.
Solar Project Economics
Solar power has become one of the most cost-competitive forms of new electricity generation in major markets worldwide*, resulting in record years of new infrastructure deployment fuelling an s-curve of increasingly attractive economics for both solar and battery storage.
The fund evaluates solar infrastructure projects through a comprehensive economic lens, analyzing factors such as technology procurement costs, power purchase agreements, and established revenue frameworks. Project assessments include local market dynamics, regulatory environments, and specific site conditions that can influence project economics.
*IEA Renewables 2024 Report.
Environmental and Social
Solar infrastructure projects contribute to carbon reduction goals and energy independence initiatives across our target markets.
The fund's focus on solar infrastructure aligns with established ESG frameworks, which are increasingly influential in institutional investment decisions. However, while environmental and social benefits may be achieved through solar projects, investment decisions should be based on a thorough review of all fund characteristics as detailed in the documentation. Environmental impact and ESG alignment do not guarantee investment performance or protect against loss of capital.
Solar Power Surge - Ember Report.
Investment Process & Strategy
The fund employs a structured evaluation process for potential solar investments, focusing on commercial and industrial installations. Our assessment framework examines multiple project elements including technical specifications, site characteristics, and energy production potential. Each opportunity undergoes systematic review of the host facility's energy consumption patterns, roof or site structural assessment, and grid connection parameters. The due diligence process includes evaluation of counterparty credit profiles, operational history, and regulatory compliance requirements. While this systematic approach aims to identify suitable projects, thorough due diligence cannot eliminate investment risks, and project performance may be affected by various factors including technical, operational, and market conditions.
The fund applies a systematic financing approach to solar infrastructure projects, utilizing established project finance principles. Our framework incorporates detailed assessment of revenue contracts, including power purchase agreements and energy service arrangements with commercial and industrial facilities. The financing structure typically includes multiple security elements, from equipment collateralization to contractual assignments. Each project's capital structure is designed to align with specific installation parameters, energy generation profiles, and contract terms. While these financing structures incorporate various security features, they remain subject to risks including counterparty performance, contract enforcement, and changing market conditions. The presence of security elements does not guarantee against loss of capital.
The fund's portfolio strategy seeks to allocate capital across multiple solar infrastructure projects, varying in size, location, and technical configuration. Our approach considers factors such as regional energy market dynamics, regulatory frameworks, and site-specific characteristics. Portfolio development includes assessment of commercial and industrial host facilities across different sectors, energy consumption profiles, and credit standings. While the fund aims to construct a diversified portfolio of solar assets, diversification itself does not ensure against loss, and investments remain subject to various risks including geographic concentration, technology deployment, and market conditions. Each project's contribution to overall portfolio composition is evaluated against established investment criteria and risk parameters.
The fund implements structured oversight of operational solar projects through established monitoring protocols and performance tracking systems. Our asset management framework encompasses regular evaluation of energy generation data, system efficiency metrics, and maintenance requirements. Technical performance is monitored against projected output models, while financial tracking includes revenue reconciliation and contract compliance verification. The asset management process includes periodic site inspections, equipment assessment, and relationship management with facility owners. While these monitoring systems are designed to identify operational issues, they cannot prevent all performance challenges, and projects remain subject to various risks including technical failures, weather patterns, and maintenance requirements that may affect returns.
A Clean Energy Future. Solar Future Fund III (SFFIII) is a regulated Portuguese venture capital fund (FCR) focusing on solar infrastructure:
Asset-backed, structured project financing for commercial & industrial solar installations targeting a net 8% IRR including targeted net 4% annual dividend commencing after 24 months
While the fund seeks to generate both income and capital returns through project financing, all investments carry risks including potential loss of capital. Any references to target returns or income are objectives only and are not guaranteed. Past performance is not a guide to future returns
Total Raise
Golden Visa Eligible Investment
Annual CO2 displacement
Investment Strategy Overview
The fund provides a structured approach to solar infrastructure investment. Investors should review the fund documentation to understand all features, risks, and requirements of the investment.
- Project Structure: Investment in contracted solar projects, which may be affected by counterparty, operational, and market risks.
- Portfolio Approach: Investment across multiple projects, while diversification does not guarantee against loss.
- Asset Security: Investments seek collateral backing, though this does not eliminate investment risk.
- Exit Planning: The fund has a defined term with planned exit strategies, subject to market conditions and other factors that may affect timing and value.
Please refer to the fund documentation for full details of risks and investment terms before making any investment decision.
Fortios Renewable Energy Community (REC)
The Anchor Client, Associação dos Amigos da Terceira Idade dos Fortios, has successfully implemented two RECs. The first project is a 24.75 kWp solar power installation at the Centro Infantil (kindergarden), which achieves carbon-positive status and supports 13 families. The installation is projected to produce approximately 40 MWh of clean energy annually, reducing the carbon footprint by 10 metric tons of CO2 equivalent. The second, larger-scale project is a 99.55 kWp solar power installation at Lar, a retirement home, with a reduction of 39 metric tons of CO2 equivalent in carbon emissions. It benefits 64 families through the community's social tariff. Both projects are operational as of Q4 2023.
Monteiro Electro Fabril (REC)
Monteiro Electro Fabril has established a 237.60 kWp solar power facility, which now supplies 79% of Monteiro Electro Fabril's energy needs. The solar plant is expected to generate 342 MWh of electricity annually, significantly reducing the company's reliance on non-renewable energy sources and supporting 217 families through the community's social tariff program. The project makes a substantial environmental impact by reducing the carbon footprint by 89 metric tons of CO2 equivalent. The project is operational as of Q4 2023.
The Lisboa-Externato Padre António Vieira Renewable Energy Community (REC)
Externato Padre António Vieira in Lisbon has launched a 51.98 kWp solar plant, fulfilling 52% of the community's energy requirements and aiding 35 families through the community's social tariff. This initiative, which commenced commercial operations in December 2023, is set to cut carbon emissions by 23 metric tons of CO2 equivalent.
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