E.ON will in return receive rights to procure electricity over a 20-year period from Zemm-Ziller pumped-storage hydropower plants in Austria’s Ziller River Valley plus cash compensation. These procurement rights represent about 318 MW of the hydropower plants’ total capacity.
Verbund will continue to own and operate the hydropower plants, but E.ON will be able to make use of the procurement rights to suit its needs. The transaction is subject to the approval of E.ON Supervisory Boards and antitrust authorities. Verbund’s Supervisory Board has already approved the deal.
The sale of the Inn River hydro plants is part of E.ON’s commitment made to the European Commission in May 2008 to sell bout 5000 MW of generation capacity and its ultrahigh-voltage transmission system in Germany in order to further stimulate competition on Europe’s energy market.