Enel has transferred its hydro assets and operations in the region to the JV in return for a 49% stake and a payment of Euro333M (US$), down from the sum originally agreed of just over Euro560M.
The new JV - called Hydro Dolomiti Enel Srl (HDE) - has a hydro portfolio with total installed capacity of 1.3GW and annual output of 3.1TWh. Under the transfer deal, the JV received 20 major hydro concessions that have been extended to the end of 2020, and seven mini-hydro plants. The concessions were due to expire at the end of 2010.
The new company will take over hydro resource development in Trento. The agreement provides Dolomiti will a call option to buy a bigger stake in the JV by 2020. It already has a 51% controlling interest.
Initially, the JV plan cited a transfer of 1.4GW of Enel's hydro assets through 14 concessions and 22 hydro plants with combined annual output of 3.6TWh. The San Floriano plant was dropped from the deal. The mini-hydro plants of 14MW total capacity and annual output of approximately 46GWh.
The companies said that the payment has been reduced from that initially agreed in the Memorandum of Understanding (MoU) last year to reflect the net financial position of the assets to be transferred, estimates of their cashflow in recent months, and dropping the San Floriano plant from the deal. Further adjustments to the price may take place to reflect actual output over 2008-2010 compared to that estimated in the agreement.
Dolomiti Energia is owned by Tecnofin Trentina (28.07%), Trentino Serviz (24.16%), FT Energia (22%), Fonazione Cassa di Risparmio di Trento e Rovereto (10%) plus local utilities and private industrial shareholders.
