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    Italy's ERG Eyes $1bn Sale of Gas, Hydro Plants: Press

Summary

The sale has attracted interest from funds and other utilities.

by: Joe Murphy

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Italy's ERG Eyes $1bn Sale of Gas, Hydro Plants: Press

Italian power company ERG has launched the sale of its hydroelectric and gas-fired power assets valued at up to €1.3bn ($1.6bn), Reuters reported on March 9 citing sources.

The sale has attracted interest from funds including Ardian and utilities including Engie, Enel, A2A and Dolomiti Energie, according to the news agency. ERG is looking to raise capital through the sale for reinvesting in its solar and wind businesses abroad and maintaining its credit stability. It is not yet decided whether the company will divest the assets separately or as a package.

ERG is the biggest wind energy operator in Italy and one of the largest in Europe, with nearly 2 GW of installed capacity. But it also controls 527 MW of hydroelectric capacity and 480-MW of gas-fired generation in Italy. The hydropower assets could raise about €1bn, while ERG's gas-fuelled plant in Sicily, which powers a refinery, could generate €200-300mn.