PSP To Sell Photovoltaic Power Plant In Italy

Prime Sun Power (PSP) has signed a definitive agreement for the sale of a 25Mw photovoltaic power plant in Italy. The sale is expected to generate gross revenues of over E100m in 2010.

The transaction is the first sale under the terms of a signed frame agreement to sell 100Mw projects on a turnkey grid-connected basis to an institutional investor.

PSP receives interest for E12m of strategic investments in the company from module suppliers. The first electricity sales from the photovoltaic plant projects under the Italian feed-in-tariff regime are expected to commence during the fourth quarter of 2010.

The company plans to develop, build and operate 500Mw of photovoltaic solar power generation through the end of 2013 of which 150Mw are expected to be acquired by third party investors. In addition to company expectation of proceeds from selected strategic financiers currently in negotiations with company management, the company plans to use revenues generated from sales of projects to third parties in the development and construction of its own power plants.

Olivier de Vergnies, CEO of the company, said: “We have commenced the phase for monetization of our business model in the photovoltaic sector. The success of signing our first 25 megawatt photovoltaic sales contract not only exhibits the effectiveness of our strategy, but also demonstrates our company project development capabilities and delivery of value to our shareholders.

“We intend to engage world leading EPC and module suppliers to guarantee on-time project delivery and project-outsourcing in order to close additional definitive sales agreements before the end of April 2010.”

Is this a sensible move from PSP?

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