SunEdison, the solar energy development division of MEMC Electronic Materials, announced an agreement with private equity firm First Reserve Corporation to establish a joint venture that could provide for the acquisition of up to $1.5 billion in current and future SunEdison solar photovoltaic energy projects.

The two companies will make capital contributions to the joint venture as qualifying projects are constructed in the target markets of the United States, Italy, Spain and Canada. SunEdison will lead the project identification and development process and First Reserve will lead the project financing efforts. Once constructed, the projects will be purchased by the joint venture and then operated and managed by SunEdison. Power generated by the projects will be sold pursuant to long-term power purchase agreements or feed-in tariff arrangements.