RPT-UPDATE 1-Sharp, Enel in Italian solar power venture

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TOKYO, May 18 (Reuters) - Enel SpA (ENEI.MI: Quote, Profile, Research, Stock Buzz) and Japan's Sharp Corp (6753.T: Quote, Profile, Research, Stock Buzz) will join forces on solar power generation, aiming for a total output capacity of 161 megawatts by the end of 2011, Italy's largest power company said in a statement.

The Nikkei business daily said on Sunday that the venture would be among the world's largest solar power operations.

The two companies signed an agreement to form a strategic partnership in the photovoltaic sector, Enel said in the statement on its Web site.

The Italian company said the two companies would develop power-generating fields in Italy.

It also said that they planned to build a plant in Italy to manufacture thin-film solar cell panels developed by Sharp.

The investment would possibly amount to several tens of billions of yen, the Nikkei said.

Enel, a world leader in the generation of electricity from renewable sources, said it was expanding its efforts in this sector and environmentally friendly technologies, with a programme of investments totalling 7.4 billion euros ($11.5 billion) by the end of 2012.