Solar JV targets top spot in Italy
EGP and F2i link up with 210MW of operating assets
Enel Green Power and F2i SGR have set up a solar joint venture with 210MW of operating capacity in Italy and worth about €230m.
The JV aims to be the leading PV firm in the Italian market.
EGP will form a new company, to which it will contribute, through its subsidiary Altomonte FV 105MW of PV assets, while F2i will contribute an additional 105MW of PV assets currently held by F2i Solare 1 and F2i Solare 3 subsidiaries of F2i Energie Rinnovabili.
The EGP assets are worth €230m euros, while the F2i assets are worth €285m. The equity value is €88m and €106m respectively.
In order to ensure equal shareholdings, EGP will therefore make an €18m cash contribution at the time of the transfer of Altomonte FV’s investment.
The JV also aims to take advantage of consolidation in the Italian PV market by bringing together operating PV solar plants owned by different financial institutions and private operators.
EGP said the joint venture will create value by:
- Reducing operating expenses by implementing the programmes already in place for existing PV plants;
- Optimising energy management with the management of EGP’s assets, leveraging the company’s expertise; and
- Optimising debt to seize new financing opportunities in a new market environment of low interest rates.
The transaction, which is expected to close by the end of 2015, is subject to the approval of the EU antitrust authority.