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INTERVIEW-Alerion mulls acquisitions to double capacity

Published 10/07/2009, 02:40 AM
Updated 10/07/2009, 02:42 AM
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* Mid-term target to double renewable capacity

* Eying acquisitions to help growth

* Small operators having problems finding funding

By Stephen Jewkes

MILAN, Oct 6 (Reuters) - Italy's Alerion Clean Power has a mid-term target of more than doubling its renewable energy installed capacity and will use acquisitions to help growth, its chief executive said on Wednesday.

Alerion, whose revenues more than doubled in the first half of the year compared to the previous year to 13.4 million euros, has a mixed renewable portfolio but focuses on wind since it offers higher megawatt-per-hour growth potential.

"Our mid-term target is to build 550 megawatts from the 235 MW we have today up and running or under construction," Giulio Antonello said in an interview with Reuters.

Alerion does not give financial targets but Antonello said that 1 MW of wind power in Italy generates earnings before interest, taxes, depreciation and amortisation (EBITDA) of around 300,000 euros ($441,900) while solar is about 500,000 to 700,000 euros.

"In terms of capex, wind costs around 1.3-1.6 million euros per megawatt, of which around 1 million euros is the turbine, while quality solar is some 3 million euros," Antonello said.

The potential for mergers and acquisitions is considerable in the wake of the economic crisis even if multiples remain overly high, he said.

"It's still a fairly small sector and at present it's not easy to find operating capacity since very few people who have been able to build parks are selling them," he said.

Antonello said the economic crisis had squeezed funding for smaller operators, even quality players.

"Alerion doesn't have problems. We're listed, have a strong shareholder base and we have a good track record. Reputation is a key element for the banks these days," he said.

Alerion, which typically uses project financing for its development plans, works mainly with Italian banks.

"The crisis has seen some banks disappear from the scene as they give priority to their home markets," Antonello said. ($1=.6788 Euro) (Editing by Hans Peters)

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