EPH has completed the transaction for the purchase of E.ON Italia coal and gas generation assets in Italy
1. 7. 2015
Czech Group Energetický a průmyslový holding (EPH) has signed the contract concerning the purchase of E.ON’s coal and gas generation assets Group in Italy. EP Produzione is the company that will manage the Italian assets, fully controlled by EPH Group.
The agreement follows the announcement of the transaction made on 12th January, and the receipt of the approval by the European Commission in May. It includes the transfer to EPH of a total generation capacity of some 4,500 megawatts consisting of an approximately 600 megawatt coal-fired power plant in Sardinia (Fiume Santo) and approximately 3,900 megawatts of gas-fired power capacity across six power plants located on the Italian mainland and in Sicily.
“This acquisition is a continuation of our strategy, announced earlier, of entering advanced western European markets that do not have a sufficient reserve margin in their installed capacity and therefore are joining a changed market arrangement known as the capacity model. The UK and Italian markets are the main markets that are in this situation and our interest focuses on them. We are also fully aware that in its current situation, the Italian generation market is under huge economic pressure and this situation cannot change before the capacity market is implemented. Our business plan takes this situation into account. To conclude, I would emphasise that in Italy we pursue a long-term and development-focused strategy, including our interest in additional acquisitions. We aim at continuing E.ON’s successful tradition in the conventional power generation in Italy, pursuing a long term strategy focused on the development of these assets. We look forward to work on this together with employees, trade unions and other stakeholders.” says Daniel Křetínský, EPH Chairman and co-owner.
The two parties have agreed that they will not disclose any additional details.