VIENNA: Italian energy group ERG plans to invest in wind power in Brazil and Europe, accelerating its expansion in the sector after its recent decision to exit the refining sector.
ERG, over 60 percent controlled by Italy’s Garrone family, completed the acquisition of wind power assets from France’s GDF Suez this year to become Italy’s largest wind energy player and one of the top ten in Europe.
Presenting the group’s strategy in Vienna on Saturday, ERG chief executive Luca Bettone said ERG planned to invest in countries and areas which had strong wind conditions and were less dependent on government subsidies, such as South America.
“This company must look to growth and, since we are now the biggest wind player in Italy, must try to move outside our national borders,” Bettone said in comments that were embargoed until Monday. “There are opportunities in this country (Brazil) and we think we’ll enter the market with acquisitions.”
ERG has transformed itself in recent years into a renewable energy company in order to counter declining profits at its refinery business. Last week it struck a deal to sell its remaining stake in the ISAB oil refinery in Sicily to Russia’s Lukoil for around ¤400m – a sale Bettone said would yield no special dividend from the proceeds.
ERG, which is now targeting a 20 percent rise in core earnings next year to around ¤600m ($813.75m), intends to invest some ¤500m to 2015 to focus on renewable energy. In Europe, Bettone said, the company aimed to enter the Spanish market while strengthening its position in Bulgaria and Romania.
Reuters
