Denmark’s European Energy breaks ground on 103MW solar project in Italy

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Source: Flickr, Floris Oosterveld

Danish renewables developer European Energy has broken ground on a 103MW project in Italy, bringing a utility-scale newcomer to the Southern European state. 

A recent statement from the firm billed the under-construction Troia PV project, set to be operational in early 2020, as Italy's largest to date. 

After steady growth between 2009 and 2012, the Italian PV market was devastated by the phase-out of state subsidies in July 2013. Total installed capacity stalled in the 18GW-19GW region between 2012 and 2018, according to IRENA statistics.

European Energy's new southern Italian project fell victim to industry paralysis. According to a statement by CEO Knud Erik Anderson, the Troia project had “been sitting fallow for seven years” before the firm purchased it in Feburary.

The utility-scale addition finds Italy in the midst of a reboot of its renewable policies, after EU authorities green-lighted in June a scheme to inject €5.4 billion (nearly US$6 billion) into PV, wind and others via contracts for difference-style auctions. 

Over the past twelve months, Shell and Swiss utility Axpo have successfully solicited private PPA agreements for energy from utility-scale Italian solar projects – the latter for 300MW annually from European Energy.

Development costs in Italy are falling dramatically. A review of global cost declines across key PV markets between 2010 and 2018 by IRENA found that Italian utility-scale projects had the second most acute cost drop of any worldwide PV market, at 78%.

European Energy reported €22.4 million (US$24.7 million) profit before tax for the first half of 2019, a sharp increase from the €900,000 (US$990,000) it reported the year prior.

The firm sold six subsidy-era Spanish solar projects with a combined capacity of 10.1MW in the first half of 2019. The sale frees up “significant liquidity” according to Anderson.

It also closed a green bond of €140 million (around US$154 million) at 5.35% interest in June, the proceeds of which will fund new renewables projects.

Read Next

October 1, 2021
Italy's state energy management agency GSE has launched a new renewables tender that is expected to allocate 3,312MW of solar PV and wind capacity.
August 31, 2021
Blackfinch Renewable European Income Trust (BRET) has announced its intent to raise up to £300 million (US$412 million) via a float to invest in renewable energy projects across Europe.
August 2, 2021
ReneSola Power has formed a partnership with UK-based Emeren to co-develop ground-mounted solar projects in Italy.
July 8, 2021
Italy’s transmission system operator Terna will invest €18.1 billion (US$21.4 billion) in the next ten years to strengthen the country’s grid and support the integration of new clean energy projects.
July 6, 2021
A round-up of the latest solar financing news, featuring Repsol’s move into the US renewables market, Aquila’s latest acquisition in Portugal and VivoPower taking full control of its US PV development portfolio.
July 5, 2021
SolarPower Europe has joined calls for the Italian government to adopt a more ambitious Simplification Decree to speed up renewable deployment and reach its clean energy targets

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 19, 2021
BRISTOL, UK
Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021