AES, private equity firm create $1 bln solar fund

LOS ANGELES, March 25 (Reuters) - Power company AES Corp (AES.N: Quote, Profile, Research) and private equity firm Riverstone Holdings LLC said on Tuesday they will invest up to $1 billion in photovoltaic solar projects around the world over the next five years.

AES and Riverstone have each committed up to $500 million for the joint venture, which will be called AES Solar, they said in a statement.

The venture will initially focus on projects in countries with the most attractive tariffs, and the utility-scale installations will range from fewer than 2 megawatts (MW) to more than 50 MW in size, the firms said.

Photovoltaic solar installations capture sunlight and convert it into electricity to feed to the power grid.

"Because of its scale, this joint venture has the potential to change the fundamental economics of solar power," said Ralph Alexander, managing director of New York-based Riverstone.

Last month, Arlington, Virginia-based AES said it wanted to spend $10 billion on renewable energy projects over the next five years. (Reporting by Nichola Groom; editing by John Wallace)