Italy - RWE Innogy enters Italian renewable energy market

The newly founded company RWE Innogy Italia is forming a joint venture with the Italian developer and renewable energy power plant operator Fri-El Green Power S.p.A., based in Bolzano, to jointly develop wind and biomass projects in Italy. RWE Innogy Italia and Fri-El Green Power each hold a 50 percent share in the development company Fri-El S.p.A. The initial aim of the joint venture is to develop planned wind energy projects amounting to some 960 megawatts as well as more than 12 biomass projects to construction maturity. Once the projects have reached construction maturity they will be contributed to separate project companies. RWE Innogy Italia will hold a majority share of 51 percent in each of these companies.

Prof. Fritz Vahrenholt, CEO of RWE Innogy, explained: “Power generation from renewable energies is growing at a tremendous pace in Italy. We want to play a major role in the development of this growth. The foundation of RWE Innogy Italia and the joint venture with Fri-El Green Power is a crucial step along this path. In Fri-El Green Power we have gained a partner that is already one of the largest independent wind farm operators in Italy.”

Kevin McCullough, COO of RWE Innogy, added: “The wind projects which Fri-El contributes to the partnership are located in excellent sites with high wind output in Southern Italy. We plan to realise these projects between 2009 and 2013.”

Josef Gostner, Managing Director of Fri-El Green Power S.p.A.: “We are pleased that we will implement our extensive wind power projects with RWE Innogy Italia. Together, we also seek to attain a leading position on the Italian biomass market. In our joint venture, we already have more than a dozen biomass projects all across Italy.”

In terms of installed capacity, Fri-El Green Power ranks fourth on the Italian market with a market share of nine percent. The company is now expanding its activities to include other renewable energy sources. The joint venture formed with RWE Innogy Italia is initially focused on future wind and biomass projects in Italy.

Renewable energy currently contributes 16.6 percent to power generation in Italy (as at the end of 2007). By 2010, this share should increase to 25 percent. The Italian government is particularly focussing on the wind sector, which is due to grow from currently 2.6 GW to 8 GW by 2020. Power generation from renewable energies is supported in Italy by a system of “green certificates”. Energy providers are obliged to supply a certain percentage of power (3.8 percent in 2008, from then 0.75 percent increase p.a.) from renewable energies. The companies can relieve themselves from this obligation by buying the relevant certificates