Isra-Mart srl:REC breaks ground on Italian solar plant

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Isra-Mart srl news:

Norwegian solar energy firm Renewable Energy Corporation (REC) has announced that it has secured financing and started building what it claims will be the largest lease financing installation for a photovoltaic project in Italy.

REC confirmed on Tuesday that it reached financial close on the 24.2MW solar farm and immediately started construction of the project, which is being managed by engineering giant ABB.

The installation will cover about 95 hectares, consisting of more than 100,000 REC Peak Energy modules. REC said the plant will produce about 37 million kWh, equal to the energy consumption of about 14,000 families, and will offset 18,500 tons of carbon dioxide emissions annually.

REC failed to disclose the value of the project but said it is the largest lease financing solution for a photovoltaic project in Italy. It is financed through a leasing structure with the financial close and first draw-down on the financing completed in early January.

Unicredit Leasing, Leasint and BNP Paribas Leasing Solutions are providing the lease financing for the plant, while the future equity owners include CEF Energia B.V. – a BNP Paribas Fund – with a 70 per cent stake and MedEnergy Group with a 30 per cent stake.

The announcement is the second piece of good news for REC this week, after it annouced on Tuesday that its fourth-quarter results will be better than anticipated as sales reached NOK4.9bn and pre-tax profits hit NOK1.1bn.

The company credited the strong performance to a cancellation fee received for a wafer sales contract, as well as stronger than expected market demand that allowed it to sell off-the-shelf stock at discounted rates.