Italian utility Enel is set to buy back its renewables subsidiary Enel Green Power (EGP), which has been listed on the stock market for the past five years.
The company yesterday said it would issue €3.1bn worth of its own shares to EGP shareholders in order to repurchase its green energy arm.
Francesco Venturini, chief executive and general manager of EGP, said the move comes at the right time due to the rapid evolution of the energy sector and increasing competitiveness of renewable technologies.
"Increased investment firepower, greater flexibility in capitalizing on market opportunities are just some of the many benefits to this transaction," he said in a statement.
Geothermal energy provides 8% of EGP's installed capacity, 761 MW of which are located in Italy and 72 MW in the USA. The company has one geothermal energy project under construction - the 38 MW Cerro Pabellon plant in Chile.
