Etrion Provides Update on Italian Operations and Schedules Investor Conference
GENEVA, SWITZERLAND -- (Marketwired) -- 06/25/14 -- Etrion
Corporation (Etrion or the Company) (TSX: ETX)(OMX: ETX), a solar
independent power producer, provides an update on the Company's
Italian operations and schedules an investor conference call at 10:00
Eastern Daylight Time (EDT) / 16:00 Central European Time (CET) on
Thursday, June 26, 2014.
Italian Government Proposal
On June 24, 2014, the Italian government published a new decree
outlining, among other things, certain proposed changes to the
current Italian Feed-in-Tariff (FiT) regime. This decree, effective
June 25, 2014, is subject to Parliamentary approval, which is
expected to take place within 60 days of the decree's publication,
during which time, the new decree may be amended or fully rejected.
The Italian FiT currently entails a 20-year commitment from the
Italian state-owned company, Gestore Servizi Energetici (GSE), to pay
a constant premium rate for all solar electricity produced at a fixed
rate defined on the basis of the connection date. Etrion's Italian
solar parks have an average residual incentive period of 16 years. In
addition to the FiT, solar power generators in Italy receive the spot
market rate for all solar electricity produced. In 2013, the spot
market accounted for approximately 15% of Etrion's Italian revenues.
The proposed changes would impact the revenues received by solar
power producers by reducing the annual FiT incentive to be paid by
the GSE. Specifically, the proposal outlines a reduction of the
original FiT, effective January 2015, between 17% and 25%, depending
on the remaining incentive period, offset by an extension of the
incentive period from 20 to 24 years. Alternatively, solar power
producers can voluntarily elect a flat 8% reduction of the FiT for
the remaining incentive period without an extension. In addition, the
new decree introduces certain changes to the payment of the FiT,
starting July 2014, whereby approximately 10% is delayed until June
of the following year.
The final implementation of the law is uncertain, and it is possible
that changes to the new decree may be introduced by Parliament.
Etrion is working closely with legal advisors and project lenders to
assess the implications of the proposed decree.
Marco A. Northland, the Company's Chief Executive Officer, commented,
"I am very disappointed with the measures proposed by the Italian
government and the impact this could have on the solar market and
foreign direct investment in Italy. Although this proposed decree is
not yet final, we have started to analyse the potential impact such
decree may have on our Italian portfolio and are exploring options to
best optimize the economics given Etrion's strong track record in
Italy and above expectation performance. The proposed changes
highlight the importance of our strategy shift two years ago to
diversify into new markets with different contract regimes."
Mr. Northland continued, "All of our growth plans today are focused
on countries outside of Europe, and Italy represents less than 50% of
our expected installed capacity in 2015. In Chile, construction of
the 70 MW Project Salvador is ahead of schedule, and we expect to
begin generating electricity by the end of Q4-2014. In Japan, we
expect to reach financial close on our first two projects with a
combined capacity of 34 MW by the end of Q3-2014 and begin
construction by the end of the year."
Investor Conference Call
A conference call/webcast to discuss the proposed changes will be
held on Thursday, June 26, 2014, at 10:00 Eastern Daylight Time (EDT)
/ 16:00 Central European Time (CET).
North America and International: +1-647-788-4922 / Toll Free:
+1-877-223-4471 / Sweden Toll Free: 02-079-4343
A replay of the telephone conference will be available until July 3,
Replay dial-in details:
North America and International: +1-416-621-4642 / Toll Free:
Pass code for replay: 64704761
Etrion Corporation is an independent power producer that builds, owns
and operates utility-scale solar power generation plants. Etrion owns
17 solar power plants in Italy with approximately 60 MW of installed
capacity. Etrion is also developing greenfield solar power projects
in Chile and Japan. 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.
Etrion discloses the information provided herein pursuant to the
Swedish Securities Market Act. The information was submitted for
publication at 23:05 CET on June 25, 2014.
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 the Company believes, expects
or anticipates will or may occur in the future (including, without
limitation, statements relating to the proposed changes to the
Italian FiT regime and the development and timing of the Company's
projects in Chile and Japan) constitute forward-looking information.
This forward-looking information reflects the current expectations or
beliefs of the Company based on information currently available to
the Company as well as certain assumptions including, without
limitation, assumptions with respect to the changes to the Italian
FiT regime going into effect and the ability of the Company to obtain
required permits for its projects in a timely fashion and project
financing on economic terms. 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 possibility that the changes to the Italian
FiT regime will differ significantly from those currently proposed,
uncertainties with respect to the receipt or timing of all applicable
permits for the development of the Company's projects, the risk that
the Company may not be able to obtain project financing on economic
terms and the risk of delays in construction of the Company's
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.
+41 (22) 715 20 90
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