Toronto, Canada — Etrion Corporation has signed a non-binding term sheet to acquire more than 30 megawatts (MW) of solar power projects in Italy for cash consideration of approximately €45 million plus the assumption of the related non-recourse loan facilities.
The solar power plants that Etrion intends to acquire are expected to produce over 55 million kilowatt hours (kWh) of electricity and more than €20 million of cash flow per year. The projects are operational or near-operational, ground-based solar photovoltaic (PV) power plants that benefit from the 2009 feed-in-tariff of €0.353 per kWh or the 2010 feed-in-tariff of €0.346 per kWh plus a market price of approximately €0.08 per kWh.
“We are very excited about this potential acquisition to strengthen our solar PV portfolio in Italy. If completed, the acquisition would more than triple the size of our company in terms of installed capacity, and it would make us one of the major solar power players in Italy. We look forward to closing the transaction soon,” said Marco Northland, Etrion’s CEO.
The Italian feed-in-tariff is a premium purchase price for renewable electricity that is guaranteed by the Italian government for 20 years from the start of operations. The acquisition of the solar projects is subject to completing the negotiation of a definitive agreement, which is expected by July 2010.