AES Solar closes on financing for Italy project

(BestGrowthStock) – AES Solar, a joint venture between power company AES Corp (AES.N: ) and private equity firm Riverstone Holdings, said one of its units has closed on financing of 103 million euros ($134.9 million) for 24 megawatts (MW) of solar projects in Italy.

Italy’s solar sector is among the fastest growing in the world, with installations expected to easily top last year’s 1,144 MW. A thousand megawatts is about the capacity of a commercial nuclear power reactor.

The financing — with Dexia Crediop and Societe Generale (SOGN.PA: ) as participants — cover about 85 percent of likely project costs, AES Solar said in a statement.

The company said that the seven plants comprising the project are expected to start commercial operation by the end of the first quarter of 2011.

Once production started, the portfolio will qualify for a 20-year regulated feed-in tariff.

AES Solar said the addition of the project will take its projects in operation or under construction to 135 MW.

AES Solar currently has 37 MW in operations in Spain, Greece and France.

($1=.7633 euro)

(Reporting by Krishna N Das in Bangalore; Editing by Gopakumar Warrier)

AES Solar closes on financing for Italy project