Canada’s Reservoir Capital Corp. said on Thursday its Serbian unit REV has signed a 20-year power sale deal from its future 58.4 megawatt Brodarevo hydro-power plant with GDF Suez Energia Italia (GSEI) .
It added that GSEI had also agreed to purchase and pass onto the company the value of any incentives generated by the project as part of the deal to deliver supplies to Italy.
“Under the terms of the agreement, electricity produced from Brodarevo will be exported for distribution into the Italian market at prevailing market prices,” Reservoir Capital Corp. said in a statement.
The Canadian firm, which is exploring a number of renewable energy projects in Southeast Europe, is developing the Brodarevo plant on the Lim river in southwest Serbia.
It has also applied for another 32 MW in Serbia and three 32 MW hydro-power licences in neighbouring Bosnia.
The company said said the agreement with GSEI, part of French gas and power group GDF Suez, the world’s biggest utility, is conditional on completion of at least one of the two plants on the Brodarveo location by the end of 2015.