ERG Renew said it would invest 254 million euros ($343.5 million) in 2010-2013 to boost its installed capacity in Italy and abroad to 429 megawatts by 2013 from 199 MW at present.
On its core wind energy markets, ERG Renew plans to invest 214 million euros in Italy to boost wind farm installed capacity to about 344 MW by the end of 2013 and 35 million euros in France to raise capacity to 84 MW there by the end of the plan period.
ERG has six Italian wind farms with combined capacity of 144 MW and five wind plants in France with a combined capacity of 55.2 MW.
The company plans to install a 1 MW photovoltaic facility which turns sunlight into power on ERG’s ISAB Energy industrial site in Sicily in 2010, taking advantage of the generous incentives in Italy which are due to expire this year.
In 2009, ERG Renew’s net loss widened to 28 million euros from 24.4 million euros hit by non-recurrent factors, in particular, in water services and mini-hydro sectors, Chief Executive Francesco Del Balzo said in the statement.
Francesco Del Balzo, Chief Executive Officer of ERG Renew, commented: “The 2009 operating result shows a clear improvement, although heavily penalised by non-recurring factors particularly involving the water services and mini-hydro sectors, considered non-strategic for the future. During the course of 2009 the Vicari and Faeto farms became fully operational, with a total capacity of 61 MW. We expect to see a continuation of this growth in 2010 with the start-up of the Fossa del Lupo, Ginestra and Plogastel wind farms."
Pietro Giordano, newly-appointed Chairman of ERG Renew commented: "As regards the new 2010-2013 plan, the consolidation of the renewables business in Italy and geographical diversification by expanding into new countries will be the main guidelines for our development strategy, which will be enhanced during 2010 and which envisages continuous support and commitment on the part of our majority shareholder.”
In the photovoltaic sector, by the end of 2010, the Company intends to install a facility at the ISAB Energy industrial site in Sicily, with a capacity of 1 MW, involving an investment of Euro 3.3 million.