EDP Renovaveis has acquired an 85% stake in Italian Wind srl from Co-Ver Group, which is an industrial conglomerate from the north of Italy. The acquisition has helped the company to add several wind energy projects in Italy to its portfolio. The wind energy projects totaling 520 MW are in prime locations.
An amount of euro 12 million was paid by EDP Renovaveis for the 85% stake and as the wind projects reach certain milestones, additional success fees will also be paid. The acquisition has helped the company to add quality pipeline in Italy. Through this transaction, the company has also incorporated a team with significant local expertise with proven renewable energy track record in Italy.
The Italian government has set a renewable obligation quota of 5.3% of total energy generated from renewable sources for 2009 and by the year 2012, the quota from renewable sources should be 7.6%. Thus the country is one of the most promising markets in Europe for wind energy. As of 2009, Italy has 4.9 GW of installed wind energy capacity and due its current stage of development, the country has high potential for wind energy.
Italy with its strong regulatory framework allows EDP Renovaveis to diversify its growth options selectively as well as to expand its operations in Europe. The company is expanding its diversification to 10 markets around the world: US, France, Belgium, Poland, Romania, Portugal, UK, Italy Brazil, and Spain. The geographical diversification allows the company to increase its options for sustainable long-term profitable growth.