IRISH-OWNED Quintas Energy plans further investments in solar power after successfully raising €40 million for its first venture in the industry.

Late last year, the company, a subsidiary of Cork-based Quintas Wealth Management, began seeking €40 million from private investors for a Spanish solar power project that will produce four megawatts (MW) of electricity.

Quintas confirmed yesterday that it had raised the cash. Director Noel Creedon said that the firm was pleased with the outcome.

"We set out to raise €40 million and that's what we achieved," he said.

He added that it would be leaving the fund open for a further six weeks to allow it to process a number of outstanding applications, with a final cut-off in September.

Mr Creedon said that the company was looking at further investments in the solar power industry, including a second Spanish project that will generate up to 20 MW of electricity.

Quintas is investing in 40 farms, which will generate a total of 4,000kw, or four MW. It estimates that this will turn over €4 million a year.

Quintas said yesterday that the investment will give a return of about 11 per cent a year over 35 years.

Along with most European governments, the Spanish administration supports renewable energy projects such as solar and wind power.

This comes in the shape of a guaranteed fee paid for each unit of electricity produced, the cost of which is then passed on to the end user.

The system means that the state is effectively helping to underwrite the investment.

When it launched the project last year, Quintas said that it was incentives such as this that prompted it to move into the renewable energy business.

The project is funded through a combination of debt and equity, with the Spanish bank, Banco Santander, providing the loan finance.