DOW JONES NEWSWIRES MEMC Electronic Materials Inc. (WFR) said it agreed to sell a 70-megawatt photovoltaic power plant in northeast Italy for about EUR276 million ($380.3 million) to private-equity firm First Reserve Corp. MEMC's shares gained 2.9% to $12.10 in after-hours trading. The stock was down 14% this year as of the close. When the plant is completed in the fourth quarter, it is expected to be the largest operating solar power plant in Europe. In its first year of operation, the plant is expected to generate enough energy to power about 16,500 homes, which in another plant would require the emission of 40,000 tons of carbon dioxide. Preventing those emissions is equal to removing 8,000 cars from the road. The plant near the town of Rovigo was jointly developed by MEMC's solar-energy division SunEdison and Banco Santander SA (STD, SAN.MC). In May, SunEdison said it would form a joint venture with First Reserve to finance and develop solar projects. Despite growing demand for solar power driven by generous government subsidies, financing for project development remains scarce, leading to delays and rising supplies of solar panels. First Reserve, with $20 billion under management, made an initial payment of EUR46 million to SunEdison and will pay the rest on interconnection of the plant, which is expected by the end of this year. SunEdison will manage operations and maintenance of the Rovigo plant after the sale. MEMC, which makes silicon wafers used to make semiconductors and solar panels, purchased SunEdison for $200 million last year in an effort to expand its reach in the solar sector. -By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com
