The Canadian-based energy company has signed a non-binding term sheet to acquire the plants for cash consideration of approximately 45 million, plus the assumption of the related non-recourse loan facilities.
The company says that the plants – operational or near operational, ground based solar photovoltaics (PV) power plants – are expected to produce over 55 million kilowatt hours (kWh) of electricity and generate a cash flow of over 20 million per year. They will 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.
Marco Northland, Etrions CEO, commented: "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."