Enel, F2i launch PV joint venture in Italy


Enel Green Power (EGP) and F2i SGR have set up a joint venture finalised today an agreement to form a 50-50 joint venture to hold 210 MW of solar PV assets.

An Italian asset management company, F21 controls the F2i fund, which specializes in investments in the infrastructure sector. The group will contribute 105 MW of assets held by its F2i Solare 1 and F2i Solare 3 units. EGP will also bring 105 MW of solar assets from its Altomonte FV subsidiary to the new company.

The joint venture aims to take advantage of the consolidation currently under way in the Italian PV market by bringing together operating PV solar plants owned by different financial institutions and private operators.

EGP said the joint venture would create value by reducing operating expenses, optimizing energy management with the proactive management of EGP’s assets, leveraging the company’s expertise and optimizing debt to seize new financing opportunities in a new market environment of low interest rates.

EGP put the enterprise value of its assets at €230 million and that of the F2i assets at €285 million. The equity value of EGP assets is €88 million net of minorities, while that of the F2i assets is €106 million, the companies added. In order to guarantee equal shareholdings in the joint venture, EGP will also make an €18 million cash contribution to the new company.

EGP has an option to acquire an additional 2.5% of the joint venture, which would give it control of the company. The agreement also gives F2i the possibility of contributing by 2016 an additional 58 MW of capacity, with EGP making an additional cash injection to maintain the two partners’ equal stakes in the joint venture.

The deal, which is expected to close by the end of 2015, remains subject to the approval of the EU antitrust authority.