Etrion Continues to Reduce Operations & Maintenance Expenses for Italian Solar Projects
June 11, 2015, Geneva, Switzerland – Etrion Corporation (“Etrion” or the “Company”) (TSX: ETX / OMX: ETX), a solar independent power producer, announces the renegotiation of its Operations & Maintenance (“O&M”) contracts with ABB, the global power and automation technology group, for the Helios ITA and Helios ITA-3 projects in Puglia, Italy, representing a total capacity of 16.4 megawatts (“MW”).
The Helios ITA project consists of seven ground-mounted solar photovoltaic (“PV”) parks with a total capacity of 6.4 MW. Six of the solar parks were connected to the electricity grid in December 2009, and the last park was connected in December 2010. The Helios ITA solar parks were built by Solon, a German solar panel manufacturer and installer. Etrion recently renegotiated the Helios ITA O&M contract with ABB effective May 1, 2015, to reduce the annual fee by more than 20%, to eliminate the previous revenue sharing provision and to increase the level of service.
The Helios ITA-3 project consists of two ground-mounted solar PV parks with a total capacity of 10 MW. Both parks were completed and connected to the electricity grid in August 2011. The Helios ITA-3 solar parks were built by ABB. Etrion recently renegotiated the Helios ITA-3 O&M contract with ABB effective June 1, 2015, to reduce the annual fee by more than 20% and to increase the level of service.
Marco A. Northland, Etrion’s CEO, commented, “We are pleased to announce continued cost reductions with the renegotiation of the ABB O&M contracts in Italy for 16.4 MW of installed solar capacity. We previously announced the renegotiation of our SunPower O&M contracts in Italy for 35.8 MW, and we are currently in discussions with the remaining O&M provider for the balance of our 60 MW Italian solar portfolio. This initiative reduces our expected O&M expenses with ABB and SunPower by approximately US$1.5 million per year while securing a higher level of service.”
Etrion Corporation is an independent power producer that develops, builds, owns and operates utility-scale solar power generation plants. The Company owns 130 MW of installed solar capacity in Italy and Chile. Etrion has 34 MW of solar projects under construction in Japan and is also actively developing greenfield solar power projects in Japan and Chile. The Company is listed on the Toronto Stock Exchange in Canada and the NASDAQ OMX Stockholm exchange in Sweden under ticker symbol “ETX”. Etrion’s largest shareholder is the Lundin family, which owns approximately 24% of the Company’s shares directly and through various trusts.
For additional information, please visit the Company’s website at www.etrion.com or contact:
Pamela Chouamier – Investor Relations
Telephone: +41 (22) 715 20 90
Note: The capacity of power plants in this release is described in approximate megawatts on a direct current (“DC”) basis, also referred to as megawatt-peak (“MWp”).
Etrion discloses the information provided herein pursuant to the Swedish Securities Market Act. The information was submitted for publication at 08:05am Central European Summer Time (CEST) on June 11, 2015.
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, that address activities, events or developments that Etrion believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the possible renegotiation of the O&M contracts for the balance of the Company’s Italian project portfolio) constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available as well as certain assumptions including, without limitation, assumptions related to the outcome of such renegotiations. Reliance should not be placed on forward-looking information. Forward-looking information is subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the risk that the Company may not be successful in renegotiating the O&M contracts for the balance of the its Italian project portfolio to reduce O&M costs.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.