Locally backed Dolomiti Energia SpA signed a formal investment agreement April 24 with Italian utility Enel SpA to jointly develop hydropower projects in Trento Province and to operate a portfolio of existing hydroelectric projects in Trento.
The agreement implements a memorandum of understanding between the parties that was initialed in 2007. (HNN 11/16/07) At that time, Dolomiti Energia SpA formed a similar understanding with another Italian utility, Edison SpA.
Enel agreed to sell Dolomiti 51 percent of its hydroelectric activities in the northern Italy province for 562.7 million euros (US$881.3 million). Enel agreed to spin off its hydroelectric operations in Trento to a new company, originally called NewCo and now named Hydro Dolomiti Enel Srl.
The transfer includes 14 concessions for major hydroelectric diversions, 22 major hydropower plants totaling 1,400 MW with annual generation of 3.6 terawatt-hours, and seven mini-hydro plants totaling 14 MW and annual generation of 46 gigawatt-hours. Enel also is transferring its Trento gas distributor Avisio Energia to the new company.
The agreement is subject to the government granting extensions of at least 10 years to the hydroelectric concessions involved in the deals as well as antitrust approvals.
Dolomiti’s shareholders are Tecnofin Trentina, Trentino Servizi, FT Energia, and Fondazione Cassa di Risparmio di Trento e Rovereto, plus a number of Trento utilities and private industrial shareholders.
In a separate memorandum last year, Edison agreed to spin off to a new company its three hydro plants in Trento, 105-MW Taio-Santa Giustina, 64-MW Mezzocorona-Mollaro, and 12-MW Pozzolago. As in the Enel agreement, Edison agreed to sell 51 percent of the new company to Dolomiti for 53.75 million euros (US$78.5 million).
Dolomiti has an indirect interest in Edison’s share capital because it owns a 10 percent interest in Delmi, which, in turn, owns 50 percent of Transalpina di Energia, a company that has a direct controlling interest in Edison.