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Flavio Cattaneo, Terna CEO explains that the Regulator has finally published the resolution establishing the rules for the remuneration of the work-in-progress.
Mr Cattaneo says that from now on, all development capex eligible to the 3% incentive will get the extra remuneration, even during the construction phase.
These milestones will be based on a list of 17 projects – including SAPEI, Sorgente-Rizziconi and the 2 interconnections with the Balkans and France – that Mr Cattaneo has submitted to the Regulator, and that are subject to the Regulator’s screening.
In case of positive results, Mr Cattaneo announces that as early as it could enjoy about 15mn of extra revenues linked to the stock of work-in-progress at the end of 2008.
Monday, 26 july 2010
Good morning everybody,
Let’s start our call reporting some recent developments regarding our regulated activity.
The Regulator has finally published the resolution establishing the rules for the remuneration of the work-in-progress. From now on, all development capex eligible to the 3% incentive will get the extra remuneration, even during the construction phase.
Obviously, we have to perform upon intermediate milestones, before the incentive can be applied, but the opportunity is worth the challenge. These milestones are based on a list of 17 projects – including SAPEI, Sorgente-Rizziconi and the 2 interconnections with the Balkans and France – that we have submitted to the Regulator, and that are subject to the Regulator’s screening.
In case of positive performance, already in 2010 we could enjoy about 15mn of extra revenues linked to the stock of work-in-progress at the end of 2008.
Year-to-date, we have achieved a few other authorizations. The most important one to mention is the one for the aerial line of the Sorgente-Rizziconi project. As you know, this is a long awaited project, that will allow important debottlenecking between Sicily and Calabria, with an annual saving for the system of about 800mn.
We have also reported further progress on the interconnection with Montenegro, after the ratification by the Montenegrin parliament of the Intergovernmental agreement with Italy, related to the submarine cable.
Now, let’s move on to comment the evolution of our photovoltaic project…
Here you can download the presentation
1H 2010 Consolidated Results (July 26, 2010)
The project is enjoying the second straight session of upgrade, since its initial recognition: our new target capacity is 150MWp, basically doubling-up last year’s original project.
The extra 50MWp are essentially an enlargement of the original portfolio of assets, now based on 75 sites.
The breakdown of this extra capacity between 2010 and early 2011 is entirely dependent on authorizations. Considering the length of the authorization processes, our best analysis today is that only part of the extra capacity (30%) will get the authorization in time to be operational by year-end. The rest will shift in early 2011. However, we’ll be more precise in November.
Clearly, we are working to take full advantage of 2010 feed-in-tariffs, although the New Conto Energia has removed the uncertainty on the sector, and the January-April incentive still leaves interesting returns, considering also the expected reduction in the cost of panels.
Anyway, I confirm that all projects authorized by September, will be included in the perimeter of the SPV we are going to sell in the next few months.
Let me give you a snapshot on the current status of works, turning to slide 5 …
We are delivering on a 360-degree programme.
In terms of operations, 2 plants (1.8MWp) are already up-and-running, while other 26 (56.1MWp) are currently under construction. Several other projects will be opened by the end of September.
On the procurement side, we have assigned turn key contracts to various EPCs for the entire capacity.
Given the timetable, we are working with the banks on the funding si