Geneva, Switzerland — Etrion Corporation and Phoenix Solar AG announced an agreement to build a 3.5-megawatt (MW) solar power plant in the Lazio region of Italy. Phoenix Solar will design and construct the plant, and provide operations and maintenance services.
The plant is expected to produce over 5 million kilowatt-hours (kWh) of electricity and approximately €2 million of cash flow per year. The plant is expected to benefit from the 2010 feed-in-tariff of €0.346 per kWh plus a market price of approximately €0.08 per kWh.
The solar plant will use Trina modules with crystalline, fixed-tilt technology and SMA inverters. Construction is targeted to begin by August 2010, and grid connection is expected by the end of 2010.
“We are pleased to partner with Phoenix Solar on this project and look forward to expanding our relationship in the near future. The 3.5 MW solar plant in Borgo Piave, Lazio is part of our internal development portfolio and demonstrates our Italian team’s execution capability converting business development pipeline into installed megawatts,” said Marco Northland, Etrion’s CEO.
The Phoenix Solar contract price is approximately €10 million. Etrion intends to fund the project through a bridge loan from its major shareholder, Lundin Petroleum. Etrion expects to re-finance 80-85% of project costs with a long-term non-recourse bank loan before the end of the year.