3Sun, the solar module manufacturing subsidiary of Italian utility Enel, has secured €560 million (US$612 million) in financing for its heterojunction module assembly plant in Sicily, Italy.
Directed towards the construction and operation of the module assembly plant, the financing was made through several entities including the European Investment Bank (EIB), supported by InvestEU, and a pool of Italian banks led by UniCredit and comprising BPER Banca (Corporate & Investment Banking)and Banco BPM, backed by SACE, the Italian Export Credit Agency.
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Financing from the EIB also includes intermediated loans to commercial lenders for €118 million which could be increased to up to €342 million in 2024, bringing its total contribution to 3Sun to €389.5 million. The split from the financial structure of the transaction is as follows:
- €47.5 million EIB loan, backed by InvestEU.
- €147.5 million UniCredit loan, 80% guaranteed by a SACE green guarantee, plus €85 million VAT loan. Out of this €147.5 million, the EIB has committed €118 million of intermediated funding to UniCredit, enabling the Italian bank to improve the financing conditions for 3Sun.
- €140 million Banco BPM loan, 80% guaranteed by a SACE green guarantee.
- €140 million BPER Banca loan, 80% guaranteed by a SACE green guarantee.
With a current annual nameplate capacity of 200MW of bifacial modules, the plant is expected to expand to 3GW of annual capacity by the end of 2024.
Enel’s financing from several European entities comes mere days after Swiss-based PV module manufacturer Meyer Burger unveiled it plans to close its module assembly plant in Germany in the coming months, with a final decision to be taken by late February.
The European solar manufacturing industry has recently been struck with several other negative announcements with both REC Group shutting down its polysilicon facility in Norway and NorSun halting its silicon ingot production in September 2023.
After Meyer Burger’s announcement last week, the European Solar Manufacturing Council (ESMC) reiterated its calls for emergency support towards the PV manufacturing industry in Europe amid concerns about its collapse.