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05/28/2008 06:58 AM
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Italian Joint Venture for Wind and Biomass
SustainableBusiness.com News
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% 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 (MW) 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% in each of these companies.
Kevin McCullough, COO of RWE Innogy, said, "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 realize these projects between 2009 and 2013."
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% to power generation in Italy (as of the end of 2007). Projections suggest by 2010, this share should increase to 25%. The Italian government is particularly focussing on the wind sector, which is expected to grow from currently 2.6 gigawatts (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% in 2008, then an additional 0.75% increase each year--from renewable energies. The companies can relieve themselves from this obligation by buying green certificates.
