German power company EON has announced that will sell its hydroelectric plants to Italy’s ERG group.
No sale price was disclosed, but a accompany spokesman said the deal amounted to a billion euros.
The complex includes “16 hydro power plants, one pumping station, seven large dams and three reservoirs,” EON said in a statement.
With a capacity of 527 megawatts the complex generates about 1.4 terawatt-hours power per year, it added.
The ERG group is based in Genoa, northwest Italy, and specialises in renewable energy.
The sale is expected to be finalised by the end of the year although it is still subject to approval by Italian anti-trust authorities.
Earlier this year, EON announced it was selling its coal and gas plants in Italy to a Czech energy company after deciding to pull the plug on its Italian operations.
The move was part of EON’s massive strategic rethink to spin off its conventional energy operations and focus on renewables.