The solar power plants are expected to produce over 55 million kWh of electricity. The projects are operational or near-operational ground-based solar photovoltaic power plants that benefit from the 2009 feed-in-tariff of EUR0.353 per kWh or the 2010 feed-in-tariff of EUR0.346 per kWh plus a market price of approximately EUR0.08 per kWh.
The acquisition of the solar projects is subject to completing the negotiation of a definitive agreement, which is expected by July 2010, and which will include standard closing conditions such as change of control waivers for the existing debt facility agreements.
The company intends to fund the acquisition through a bridge loan from its major shareholder, Lundin Petroleum, subject to regulatory approval. The bridge loan will carry interest at LIBOR plus 3%.
Marco Northland, CEO of Etrion, said: “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.”
The Italian feed-in-tariff is a premium purchase price for renewable electricity that is guaranteed by the Italian government for 20 years from the start of operations.
