Italian-based Enel Green Power has announced it will be forming a joint venture to consolidate 210 MW of operating solar PV capacity in Italy.
In an announcement released last week, Enel Green Power revealed that it would form a 50/50 joint venture with Italian asset management firm F2i (Fondo italiano per le infrastrutture) — along with the company’s respective subsidiaries — so as to consolidate operating solar PV projects currently owned by the two companies.
Specifically, Enel Green Power will contribute — through its subsidiary Altomonte FV S.r.l. — 105 MW of solar PV assets, while F2i will contribute 104 MW of solar PV assets — currently held by F2i Solare 1 S.r.l. and F2i Solare 3 S.r.l., subsidiaries of F2i Energie Rinnovabili S.r.l.
According to Enel Green Power, it plans to use the joint venture to create value by:
- Reducing operating expenses by implementing the programs already in place for existing PV plants
- Optimizing energy management with the proactive management of EGP’s assets, leveraging the company’s expertise
- Optimizing debt to seize new financing opportunities in a new market environment of low interest rates
Enel Green Power has regularly been in the news of late, with a number of successful projects being deployed or won around the world. Earlier this month, Enel Green Power announced that it would be looking to increase its investments in Morocco, with initial plans to participate in the country’s 850 MW wind energy tender. At the same time, Enel Green Power executed a large renewable energy asset sale in Portugal, earning $1 billion in its sale of assets to First State Wind Energy Investment.
Reported in September, Enel Green Power was also the biggest winner in Brazil’s Leilão de Reserva public solar tender, walking away with over 500 MW of solar PV project capacity. This followed an announcement from a month earlier, in August, of Enel Green Power’s plans to acquire India’s renewable energy project developer Bharat Light & Power.
This new joint venture will include assets valued at €230 million from Enel Green Power and €285 million from F2i. In order to ensure equal shareholdings in the joint venture, Enel Green Power is also planning on making an €18 million cash contribution at the time of the transfer of Altomonte FV S.r.l.’s investment.
EU antitrust approval is expected by the end of 2015.
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