Nov 21 2010
From sun to water, from photovoltaic energy to hydroelectricity: international vertically-integrated photovoltaic provider, Silfab SpA, is expanding its scope of interest in renewable energy with the acquisition of 10% of the share capital of Idrofin Srl, a Padua-based developer of hydropower plants in Eastern Europe with a core business in Romania.
For the photovoltaic multinational, which specializes in products and components spanning the entire PV supply chain, this acquisition seals a key strategic partnership in a highly lucrative and relatively low-risk market. The investment also marks the official entrance of Silfab in Romania, where Idrofin, through its controlled company Hidrogest Energia Srl, is currently developing a 23 MW network of micro hydropower plants (with less that 10 MW/year) which, once brought to completion, will generate an annual hydroelectric capacity of 76 million kWh, for a total investment of over 60 million Euros.
In addition to three hydroelectric plants already operating along the Barbat River, Idrofin is currently developing "Chemp Roscani," a new hydroelectric plant by the Dobra River basin area which will supply an annual output of 6.6 MWp. The plant will exploit Dobra River's capacity averaging a monthly water flow that reaches up to 2,200 litres per second, corresponding to an estimated annual production of 26.03 GWh. Earlier this year, the company completed the government authorization process to start the construction works of Chemp Roscani, scheduled to commence within the next few months.
The economic and financial effort required to develop these projects - a commitment that Idrofin has pursued both individually and in partnership with other organizations - has been compensated by a high level of profitability with long-term return on investments close to 15% for over 50 years. These exceptionally high performances are in large part guaranteed by the Green Certificate incentive program introduced by the Romanian government to facilitate the growth of locally-produced renewable energy, including hydropower, wind and solar energy. According to such program, micro hydropower plants such as Chemp Roscani are eligible to receive 3 Green Certificates for each MWh delivered to the local electricity grid for a period of 15 years.
In addition to Idrofin, which currently holds 93% of the share capital, Hidrogest is also partly controlled by Espe Energia Srl, a Romanian company headquartered in Padova which owns and operates five hydropower plants and specializes in highly innovative and technologically advanced projects.
"With this initiative," remarked Franco Traverso, President and CEO of Silfab SpA, "we not only do amplify our competence within the renewable energy marketplace, but we also consolidate a strategic partnership with Espe Group - a company I personally have been working with for the past 30 years to develop photovoltaic project. For Silfab this partnership represents a unique opportunity to access a crucial energy market with a partner that has both solid and strategic technical expertise in hydroelectricity."