(Alliance News) - ERG Spa on Thursday announced that through its subsidiary ERG Eolienne France SAS, it has signed an agreement with QEnergy France SAS, a leading renewable energy operator in France, to acquire 100 percent of CEPE Renouvellement Haut Cabardès SAS, a company that owns a 73.2 MW wind and solar portfolio in France.

The portfolio of plants subject to the acquisition consists of two photovoltaic farms, commissioned between June and September 2022, totaling 20.4 MWp of installed capacity, a 28.8 MWp solar project in an advanced stage of construction, and a 24 MW wind farm in the final commissioning stage following a total rebuild to new (repowering).

Total estimated production is about 125 GWh annually, equivalent to 64 kton of CO2 avoided.

The two solar plants in operation and the wind farm benefit from a tariff regime with a CfD of 20 years, while the outputs of the photovoltaic farm, which will be commissioned in the second quarter of 2024, are linked to a 15-year PPA with a leading corporate counterparty.

The enterprise value of the transaction is about EUR86 million, with an equity value of about EUR17 million. Closing is expected by January 2024.

Paolo Merli, CEO of ERG, commented, "With this transaction we consolidate our presence in France, ERG's second largest market in Europe, where we reach an installed capacity of 674 MW, of which about 20 percent is from photovoltaic technology. The integration with our current plant portfolio will allow us to implement important operational synergies."

ERG on Thursday trades in the green by 0.1 percent at EUR28.66 per share.

By Maurizio Carta, Alliance News reporter

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