Italy utility trades Endesa stake for hydro plants

Italian utility A2A announced it will receive a cluster of hydroelectric plants totaling 484 MW and a 976-MW thermal plant from Germany’s E.ON in a trade for its 20 percent stake in Endesa Italia.

The deal, approved in principle in June after long-running talks, gives E.ON, the world’s largest utility, full control of Endesa Italia, now named E.ON Produzione. A2A, the Milan utility formerly named AEM SpA, said it selected the northeastern Monfalcone thermal plant and the cluster of hydroelectric stations in the southern Calabria region.

“The impact of the transaction on the group’s overall financial position is expected to be approximately 250 million euros” (US$398 million), A2A said July 18.

The new plants increase A2A’s installed capacity to 5,500 MW from 4,100 MW, it said. A2A, which expects completion of the deal by year-end, said it would set up a new corporate vehicle to which all the selected electricity generating assets would be transferred.

The hydro plants in Calabria join A2A’s portfolio of hydroelectric projects, both reservoirs and run-of-river plants, in Valtellina (HNN 10/29/07), as well as its Edipower SpA unit’s complexes in Mese, Tusciano, and Udine. Following renovation, the plants are producing �green� certificates as are the run-of-river plants in Brescia Province.

E.ON agreed to buy some Endesa assets last year as a consolation prize after its failed bid for the Spanish company, which was bought by Italy’s Enel and Spain’s Acciona. (HNN 4/4/07)

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