Enel Green Power has made its first foray into the German renewable energy market with the acquisition of a 78.6% stake in Erdwärme Oberland in southern Germany.
EO will develop a geothermal project with a maximum capacity of 26MW.
The company acquired the stake from Erdwärme Bayern through the issue of new shares in EO for €22m which will cover the initial investment requirements of the project.
The project is located near Weilheim, about 50km south-west of Munich, and will be developed under a mineral exploration concession granted by the Bavarian Ministry for Economic Affairs, Media, Energy and Technology valid for three years from December 2015.
“This acquisition is very significant because it opens the door for Enel Green Power to a major, stable renewable energy market such as Germany” said EGP chief executive Francesco Venturini
“The transaction demonstrates the Group’s ability to keep pace with market developments and quickly enter new countries.
“We intend to build a solid platform for future investment opportunities in the country, both in geothermal power and in other sectors, contributing to achieving the target for the share of renewables in the European energy mix.”
EO will begin with geological exploration activities in 2016.
Image: Enel
