Etrion, Phoenix Solar to build solar plant in Italy

(Reuters) - Canadian renewable energy company Etrion Corp said it agreed to build a 3.5 megawatt solar power plant in the Lazio region of Italy with Phoenix Solar AG, a German solar wholesaler.

The plant is expected to produce more than 5 million kilowatt hours of electricity, Etrion said in a statement.

The cash flow per year is expected to be about 2 million euros ($2.6 million), the company said.

The contract is worth about 10 million euros, and Etrion plans to fund the project through a bridge loan.

Phoenix Solar will design and construct the plant, and provide operations and maintenance services.

Construction is targeted to begin by August and grid connection is expected by the end of 2010.

Etrion shares closed at 80 Canadian cents Friday on the Toronto Stock Exchange.

($1=.7733 Euro)

(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Anne Pallivathuckal)