CIG has learned that in a recent statement ERG Renew, the renewable energy firm 77% controlled by Italian refiner ERG,announced the resignation of its chairman and director, who is to be replaced by the deputy chairman of ERG, Pietro Giordano.
The renewables company said it would invest $343.5 million (€254 million) from this year through 2013 to boost its installed capacity both at home and abroad to 429MW by 2013 from its current 199MW.
CIG believes the newly appointed chairman said that consolidation of the renewables business in Italy as well as geographical diversification by expanding into new countries would be the main guideline for the firm’s development strategy.
In a conference call shortly after the announcement of his appointment he said that the firm intended to sell its non-core assets in water service and mini-hydro businesses in 2010 and that they had already selected financial institutions to assist with the disposal. The current book value of the water services assets is believed to be around $20.55 million.
CIG believes he went on to say that the company intended ironing out a new development strategy for expansion into eastern European wind markets where the market is less mature than the domestic equivalent and offers a higher growth potential.
The new chairman and director said that 2010 would “certainly not be a flamboyant year, but it will be a starting point for improvement."
