Enel SpA announced that it will acquire hydro assets from the Italian renewable energy company ERG, in a transaction valued at one billion euros ($ 1.19 billion), Reuters reports.

The largest utility company in Europe reported that it had agreed to buy the 527 MW portfolio of assets from ERG, which generates on average about 1.5 TWh (terawatt-hours) of energy per year.

The transaction would be completed early next year and will be financed from cash flow and current lines of credit, said Enel, the dominant player in the Italian hydroelectric segment, with a capacity of almost 12.5 GW.

Enel is the largest listed renewable energy company in the world in terms of installed capacity and plans to spend 150 billion euros of its money to nearly triple its capacity to 120 GW and reduce its carbon emissions by 80% by 2030.

“Due to the acquisition of these strategic assets, we are taking a significant step towards achieving the group’s decarbonisation target,” said Enel Green Power CEO Salvatore Bernabei.

In March, Reuters announced that ERG was looking to sell its assets to reinvest abroad in wind and solar energy, while maintaining its credit rating. The ERG offer attracted the interest of utility companies and investment funds, according to Agerpres.