TOKYO, JAPAN - Japan's Sharp Corp said on Thursday it would team up with Italian utility Enel to develop solar power plants in the Mediterranean region.

The two firms will launch a joint venture early next year to develop photovoltaic power plants in Italy, Sharp said in a statement.

The power plants, which will be mainly in southern Italy, will use thin-film solar cells, which offer superior efficiency in hot climates, the Japanese company said.

They aim to develop the plants with a total capacity of 189 megawatts by the end of 2012.

Sharp, one of the world's largest makers of solar power panels, said the two partners hope to expand the tie-up to other Mediterranean countries.

Sharp and Enel plan to set up a thin-film solar cell plant in Italy in cooperation with another European manufacturer.

The three companies will build a factory with an annual capacity equivalent to 480 megawatts, with the aim of starting operations around mid-2010.

Sharp did not give any financial details. The Nikkei business daily reported the power producing venture will have an estimated investment of 150 billion yen (S$2.4 billion dollars).

Sharp, one of the world's largest makers of solar power panels, is seeking a foothold in clean energy in Europe, where governments provide subsidies for solar power.