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ERG to focus on building wind power in Brazil

Italian energy group to expand into wind sector and invest in BRIC country’s wind power industry

wind farm with red sunset
ERG plans to invest in countries with strong wind conditions, less dependent on government subsidies, such as South America

Italy's energy group ERG plans to invest in building up wind power in Brazil, according to reports. The Italian company is accelerating its expansion into the wind sector, focussing on moving outside its national borders and targeting the BRIC country for opportunities, Reuters reports.

ERG chief executive Luca Bettone said the company plans to invest in countries and areas which have strong wind conditions and are less dependent on government subsidies, such as South America.

"This company must look to growth and, since we are now the biggest wind player in Italy, must try to move outside our national borders," Bettone said, Reuters reports. "There are opportunities in this country (Brazil) and we think we'll enter the market with acquisitions."

ERG follows other European wind developers expanding their business in the BRIC country in 2013. This includes French firm Alstom, which opened its first wind tower factory in Brazil in August. Meanwhile, Spanish company Acciona has announced it will open a second assembly plant to manufacture wind turbines in Brazil next year.

ERG, which according to Reuters is now targeting a 20 per cent rise in core earnings next year to around EUR 600m (USD 813.75m), intends to invest around EUR 500m through to 2015 to focus on renewable energy.