German power giant EON sells Italian hydro plants to ERG

(MENAFN- AFP) German power giant EON announced Thursday that it had agreed to sell its hydroelectric plants in Italy to the country's ERG group.

EON did not disclose the sale price for the Terni hydroelectric complex in its statement but a company spokesman told German news agency DPA the deal was worth around a billion euros ($1.1 billion).

The complex includes "16 hydro power plants, one pumping station, seven large dams and three reservoirs," EON said in a statement.

With a capacity of 527 megawatts the complex generates about 1.4 terawatt-hours power per year, it added.

The ERG group is based in Genoa, northwest Italy, and specialises in renewable energy.

The sale is expected to be finalised by the end of the year although it is still subject to approval by Italian anti-trust authorities.

Earlier this year, EON announced it was selling its coal and gas plants in Italy to a Czech energy company after deciding to pull the plug on its Italian operations.

The move was part of EON's massive strategic rethink to spin off its conventional energy operations and focus on renewables.