SunPower signs €48 million agreement for Italian power plants

The acquisition of the 20 MW first phase of the project for €36 million has already been completed. The acquisition of the eight MW second phase for €12 million remains subject to standard closing conditions and is expected to close by the end of the third quarter of this year, says SunPower.

The company adds that the first 20 MWs of the power plant in the Lazio region of Italy near Rome were connected to the grid last November. The eight MW second phase was commissioned this month. It also says that an incremental 44 MWs is planned to be completed and sold by the end of this year, bringing the total to 72 MWs. The Montalto solar park’s first and second phases are rated at 28 MWs on an AC basis and 33 MWs on a DC basis.

"The successful sale of the first phases of the Montalto solar park is an important milestone for SunPower," said company president Howard Wenger. "The sale demonstrates our progress monetizing SunPower’s European power plant pipeline of more than 1,200 MWs that we acquired with the purchase of SunRay Energy in March 2010, and it helps validate our model of building and selling first-class solar power parks. Our expanding utility and power plant business provides us with strong revenue visibility in Europe, the Middle East and North America through 2014."

The company says it will recognize the sale of the first phase of the project as a return of capital, and will recognize revenue on the sale of the second phase, including previously deferred EPC revenue, upon close of sale, which is expected by the end of the third quarter of this year.