Octopus nets PPA deal for more unsubsidised solar sites in Italy

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

The developing post-subsidy solar market in Europe has taken another step forward with the news that UK-based investor Octopus has extended five power purchase agreements in Italy with renewable energy trader EGO Group.

The deal will see Octopus continue to supply EGO with power from a portfolio of five unsubsidised operational PV power plants with a capacity of 63MW until September 2023.

It follows the announcement last week that Octopus had signed a similar PPA deal with Shell, under which it will supply power to the oil major from another five of its subsidy-free solar plants in Italy. Long-term PPAs between solar generators and off-takers such as EGO or Shell are seen as a key plank in the solar industry’s shift away from subsidies towards more market-oriented business models.

Under the latest deal, Octopus will provide EGO with electricity at a fixed contracted price valid until September 2023 for both energy and Guarantees of Origin, for which contracts were also signed. The five sites are located near Montalto di Castro in the Lazio region of Italy and were part of a €23 million (US$26 million) refinancing by Octopus earlier this year in January. EGO now has 103MW of solar PV power contracted with Octopus out of the total 173MW currently owned by Octopus in Italy.

Ed Pitt Ford, senior investment manager at Octopus, said: “In the current photovoltaic market, long-term purchase agreements have a fundamental strategic role. We have been working with EGO for almost two years and have nothing but praise for the manner in which they operate. We are pleased to entrust them with a significant share of our pioneering projects in Italy.”

Stefano Cavriani, founder and commercial director of EGO Group, commented: “This contract is another piece of the robust growth path that our company has undertaken in both traditional sectors and new markets. Following our positive performance in 2017 with turnover of €540 million (US$612 million) and €15 million (US$17 million) of EBITDA, we aim to consolidate our results this year and expand our activity in the PPA and demand-response markets.”

Read Next

April 12, 2021
A consortium between Abu Dhabi-based Masdar, EDF Renewables and Nesma Holding Company has broken ground on a 300MW PV project in Saudi Arabia.
April 8, 2021
Utility group Black Hills Energy has signed a 15-year power purchase agreement (PPA) with solar energy company 174 Power Global for its first large-scale solar power project in Colorado, US.
April 7, 2021
Saudi Arabian developer ACWA Power has finalised agreements for the 200MW Kom Ombo solar plant in Egypt, with construction work set to begin later this year.
April 6, 2021
Dubai-based Phanes Group has signed a deal with the government of Uzbekistan to develop a 200MWac PV project in the country.
March 30, 2021
‘Solar Module Super League’ (SMSL) member JA Solar has reported PV module shipments of 15.88GW in 2020, up from 10.26GW in 2019, a 54.8% increase year-on-year, setting new records for total shipments and shipment growth.
March 30, 2021
A round-up of project updates from across the global solar industry, including updates from Israel's Shikun & Binui, independent power producer Sonnedix and UK-based Hive Energy.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 13, 2021
Solar Media Events
April 20, 2021
Upcoming Webinars
April 28, 2021
4:00 - 4:30 PM CET