According to insiders, Edison is seeking to capitalise on the increasing demand for green assets from investors.

The company, owned by EDF, is working with two financial service companies, Lazard and Societe Generale, to invite private equity firms to an auction process.

The auction process is expected to take place in the coming weeks, according to the sources.

The sources said the deal was expected to value Edison’s complete renewable energy generation business at more than €1bn ($1.22bn).

Proceeds from the divestiture will help the company to support its green energy operations.

Due to ‘investment priorities’, EDF has not committed any financial support for Edison.

Edison has divested all its upstream exploration and production assets in order to focus on the renewable power and energy efficiency segment.

The company declined to comment, as did Lazard and Societe Generale.

In February, Edison took over 70% of E2i Energie Speciali, which has 706MW of wind capacity across 38 plants in Italy. The company already held the remaining 30% stake in E2i.

By taking complete control of E2i, Edison became Italy’s second-biggest wind operator, with a renewable installed capacity of 1GW.

Italian state-owned energy group Eni also plans to sell a minority stake in a new retail and renewable energy business that aims to grow green power generation to more than 5GW by 2025.

The move is part of Eni’s energy transition plans.