E.ON announces sale of coal and gas power generation assets in Italy

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E.ON has decided to sell its Italian coal and gas generation assets to Czech energy company Energetický a Průmyslový Holding (EPH).

In an email statement, E.ON said, “With EPH, E.ON has found a buyer for all its thermal generation activities in Italy who is fully committed to the further development and long-term future of the assets thereby helping to ensure security of supply for the country.”

The plants being sold by the German utility comprise of a total generation capacity of approximately 4500 MW. They consist of an approximately 600 MW coal-fired power plant in Sardinia (Fiume Santo) and approximately 3900 MW of gas-fired power capacity across six power plants located on the Italian mainland and in Sicily.

Johannes Teyssen The transaction is subject to the approval of the European Union competition authority and is expected to be finalised by the second quarter of 2015.

E.ON CEO Johannes Teyssen said: “They (power plants) are a key element of energy security in Italy and I am convinced that the new owner will continue to invest into the energy system of the country. I want to take this opportunity to thank all affected employees in Italy for the excellent work they have done as part of E.ON. We will work closely with the new owner, our trade unions and their representatives to set a successful course for the future of the assets and our employees. We continue to assess a possible divestment of our other businesses in Italy as well.”

Jonas Rooze, Head of European Power and Carbon, at Bloomberg told Power Engineering International what the latest deal meant in terms of the Czech company's market presence. "This acquisition, together with its November purchase of Eggborough, more than quadruples EPH in just a few months in terms of power generation capacity," Rooze said. "EPH is also known to be eyeing up Vattenfall's for-sale lignite assets. Acquisition of those would further double EPH, making it larger than CEZ and the 10th largest European power generator with some 16 GW of capacity. "

Daniel Křetínský, CEO of EPH commented: “Our strategy is long term and development focused. We look forward to working on this goal together with employees, trade unions and other stakeholders."

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