UK group buys Italy's Rete Rinnovabile

RTR has been operating PV power plants and has about 150 megawatts of capacity, amounting to approximately 10 percent of Italy’s total solar capacity according to the company. The sale price has been set between €620 and €670 million as it is dependant on which of the company’s solar plants will qualify for Italy’s 2010 or early 2011 Conto Energia feed-in tariffs at the closing date which is expected to be the 31st of March next year.There are also certain condition precedents, including RTR’s 2010 statutory financial statements.

According to multi-annual contracts defined in the context of the transaction, the agreement foresees Terna to provide RTR with services regarding PV plants’ maintenance, surveillance and monitoring. At the expiring of each land leasing contract, Terna will regain the possession of the areas.

“We are very satisfied with the agreement. We have completed a transaction that will benefit Terna, the country and Italian electricity system,” stated Flavio Cattaneo, chief executive officer of Terna.Terna plans to reinvest the proceeds of the sale according to the company.