Etrion, Phoenix Solar Partner On 3.5 MW Photovoltaic Plant

Etrion Corp., an independent solar power producer, and Phoenix Solar AG, a photovoltaic system integrator, have signed an agreement to build a 3.5 MW solar power plant in the Lazio region of Italy. Phoenix Solar will design and construct the plant, and provide operations and maintenance services.

The ground-based solar photovoltaic plant is expected to produce over 5 million kWh of electricity and approximately 2 million euros of cashflow per year. The plant is expected to benefit from the 2010 feed-in tariff of 0.346 euros/kWh, plus a market price of approximately 0.08 euros/kWh.

The solar plant will use Trina modules with crystalline, fixed-tilt technology and SMA inverters. Construction is targeted to begin by August, and grid connection is expected by the end of this year.

The Phoenix Solar contract price is approximately 10 million euros. Etrion intends to fund the project through a bridge loan from its major shareholder, Lundin Petroleum. The bridge loan carries interest at LIBOR plus 3%. Etrion expects to refinance 80% to 85% of project costs with a long-term nonrecourse bank loan before the end of the year.

SOURCE: Etrion Corp.

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