Italy's Edison earmarks 7.2 bln euros for investment

* Debt to stay at current levels

* Sticks to previous profit targets, update in February

* Shares end 7.3 pct lower

* EDF interested in Abu Qir, decision in Q1

(Adds quotes, EDF, Abu Qir, project details)

By Stephen Jewkes

MILAN (Reuters) - Italy's second biggest power producer Edison SpA (EDN.MI) plans billions of euros of investments even as rivals around Europe delay expansion schemes amid the economic downturn.

Setting out an updated business plan for 2009 through 2014, Edison said on Friday it had earmarked 7.2 billion euros ($9.2 billion) for investments while keeping debt at current levels. At the end of September, Edison's debt was 2.8 billion euros.

Edison's planned investments will be split equally between capital expenditure for power generation and hydrocarbon activities. It will spend 1.1 billion euros on overseas power generating projects.