EDP Renovaveis S.A. is acquiring 85% of Italian Wind srl, from Co-Ver group, an industrial conglomerate in northern Italy. The acquisition will add several Italian wind projects to EDP Renovaveis’ portfolio, totaling 520 megawatts in different stages of maturity and in prime locations. The properties include 4 wind projects totaling 108 MW classified as Tier 2, 98 MW of projects classified as Tier 3, and 314 MW classified as prospects.
EDP Renovaveis will pay €12 million (Enterprise Value) and additional success fees to be paid as the wind projects reach certain predefined milestones. Through this transaction EDPR acquires a quality pipeline in Italy and incorporates a team with a strong local expertise and track record on the Italian renewable sector, with an accumulated experience in the development and construction of 125 MW.
The Italian wind market has a high growth potential due to its current stage of development. With 4.9 GW of wind installed capacity in 2009 (+1.1 GW vis-a-vis 2008), Italy is one of the most promising wind markets in Europe. The approved renewable obligation quota set by the government required that in 2009 5.3% of the electricity supplied to be sourced from renewable technologies, escalating to 7.6% by 2012.
The entrance in the Italian market will allow EDPR to be exposed to one of the most attractive countries in Europe given its strong regulatory framework, enabling the company to selectively diversify its growth options and expand its European footprint. EDPR thus expands its geographical diversification to 10 markets around the World — US, Spain, Portugal, France, Belgium, Poland, Romania, UK, Italy, and Brazil — and increases its ability to deliver a sustainable long term profitable growth.
EDP Renovaveis is a global leader in the renewable energy sector. It designs, develops, manages, and operates power plants that generate electricity using renewable energy sources. With a sound development pipeline, first class assets and market-leading operating capacity, EDPR has undergone exceptional development in recent years and is present in ten global markets. Energias de Portugal, S.A. (“EDP”), the majority shareholder of EDPR, is a vertically-integrated utility company, headquartered in Lisbon, Portugal. Through its various constituent businesses, EDP holds significant electricity and gas operations in Europe, Brazil, and the United States.
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