Combined Cycle

BKW Energy acquires large stake in Italy’s Tamarete Energia, halts Swiss investment

18 December 2008 – Switzerland’s BKW FMB Energy Ltd (BKW) is continuing to expand its presence in Italy with the acquisition of a 48 per cent holding in the Italian power plant company Tamarete Energia S.r.l.

The Italian company intends to expand the output of a gas fired combined cycle power plant in Chieti (Ortona) from 5.5 MW to 104 MW. Due to be commissioned at the end of 2010 with a production of 500 GWh, the expanded plant will make a major contribution to supplying the region with peak load energy.

In Ortona in Italy’s Abruzzo region BKW is acquiring a 48 per cent holding in power plant company Tamarete Energia, with the previous sole shareholder Odoardo Zecca retaining a 20 per cent stake. In addition, Hera, a well-established Italian energy supplier, is acquiring a 32 per cent holding in Tamarete Energia S.r.l.

Work on stepping up the plant’s output from 5.5 MW to 104 MW is likely to last two years before commercial production can begin. Total investment in the project amounts to approximately €90m ($131m).

Meanwhile, faced with the uncertain economic outlook and delay and uncertainties in the scope of electricity market liberalisation, BKW is halting work on the implementation of two market and network projects.

Despite federal law governing power supply due to become effective at the beginning of 2009, electricity market liberalisation in Switzerland has so far made very little headway.

In view of this and taking into account the uncertain development of framework conditions, following consultation with the partners involved BKW is halting work on the energy hub it was planning with a number of civic partners and which was aimed at optimising the use of energy against an uncerrtain economic background.

The resumption of work on the projects at a later date is not ruled out should the economic climate change; however, precisely when that might be and exactly to what extent remain entirely open.

In the present uncertain circumstances BKW is also halting a cooperation it has been looking into with partners in west and north-west Switzerland on high voltage networks.

The design and construction work already carried out on network development ensures that BKW is in a position to react swiftly and locally to changing circumstances and requirements.