From 2011 the companies intend to jointly operate existing and new hydro concessions in Bolzano. As part of the deal, Enel will also sell its distribution grid in the province to SEL for Euro79M (US$103M).
Enel has 12 major hydro concessions of 616MW capacity in the province, and 17MW of mini-hydro.
The value of the major assets, staff and resources being transferred by Enel to the JV has been set at Euro340M (US$442M). The mini-hydro asset value is put at Euro20M (US$26M).
The JV is to be majority (60%) owned by SEL, and cash payments made that, coupled with the asset valuation, ensure the ownership split on 1 January 2011.
Their planned JV is subject to regulatory approval.
In the third quarter, Enel separately completed arrangements with Dolomiti Energia for a joint venture in hydro operations and development in the Trento region.
Enel transferred its hydro assets in the region to the joint venture – Hydro Dolomiti Srl (HDE) – in return for a 49% stake and a reduced, lump sum payment of Euro333M (US$433M). The JV has a portfolio of 1.3GW in 20 major hydro concessions and seven mini-hydro plants.
