China-based Shanghai Electric Power Co. Ltd. is forming a £420 million joint venture with Spain's Eland Private Equity to invest in solar projects in Europe, Energy Voice reported Dec. 18.

Tayan Energy, the joint venture, currently owns 2 GW of projects in Spain and will be based in Madrid. Over the next three years, the joint venture plans to pursue solar opportunities across Europe including the U.K., according to the report.

The deal marks Shanghai Electric's entry as a solar investor and operator into the European and U.K. markets. Eland currently owns 40 solar projects in Spain, Italy and Latin America.