Alternus Energy Inc., formerly known as Power Clouds Inc., said it acquired three solar power plants totaling 2.24 MW in Italy from Liquid Sun Srl for €3.65 million.
The projects, located in Budrio and Anagni regions of Italy, have been operational for nearly five years, the New York-headquartered Alternus Energy said in a Jan. 14 press release. The facilities sell electricity through feed-in-tariff, or FIT, government incentives. The FIT provides a fixed sales price for every megawatt of energy that the projects generate over a 20-year period.
With the purchase of the facilities, Alternus Energy has a backlog of approximately €9.5 million of contracted revenues over the next 15 years. Afterwards, the projects will continue to operate profitably and sell their output to the country's national grid at the then market rates, the company said.
The company funded the acquisition with a €3.85 million loan note, with a coupon rate of 12% annually. The note is valid for six months. The company is in negotiations with an Italian bank for a more suitable term loan facility to replace the note.