EDF units in 600MW Italy RE JV

Italian utility Edison and EDF Energies Nouvelles (EN) – both subsidiaries of France’s EDF – and infrastructure fund F2i have agreed to form a new renewables operator, signing a deal that will put a total of 600MW of assets into a joint venture.

Edison confirmed to Recharge that the agreement will lead to the formation of Italy’s third-largest operator of renewable energy assets.

It said most of the 600MW of capacity will be wind power.

The partners said the new venture will combine Edison's industrial-scale experience with with that of EDF EN in plant O&M, plus the fresh financial strength of F2i.

F2i will own a 70% stake in the new venture, while a holding company owned by Edison and EDF EN will hold the remaining 30%.

News of the plan first emerged earlier this week.

Italian press reports have valued the transaction at around €800m ($1.07m), although Reuters reports the deal to be worth between between €400m and €500m.

F2i is a long-term institutional investor with extensive experience in the renewables sector.

Edison operates renewables facilities in Italy with a total installed capacity of around 1.85GW, including hydroelectric plants, wind farms, solar arrays and biomass.

In 2012 its production from renewables amounted to 4.8TWh, equivalent to some 20% of the total group’s output.