Friday 7 August 2015

E.ON to sell Italian power plants for $1bn

E.ON plans to sell its Italian hydroelectric power plants for nearly $1 billion (£0.64).

ERG Power Generation is to buy the entire Terni Hydroelectric Complex which covers the regions of Umbria, Lazio and Marche.

It consists of 16 hydropower plants, one pumping station, seven large dams and three reservoirs (Salto, Turano and Corbara).

With an overall capacity of 527MW, the complex generates around 1.4TWh of power per year.

ERG expects the hydroelectric business to generate around €110 million (£77.48m) annually in the next few years.

The transaction is subject to the approval of the Italian Antitrust Authority and the completion of the consultation procedures with the relevant trade unions.

It is expected to close before the end of 2015.

This transaction follows the closing of the sale of E.ON’s coal, gas and solar generation businesses in Italy.