Danish project developer European Energy has broken ground on a large-scale agri-PV plant near Vizzini in Sicily, with the 225.5 MW installation representing an investment of more than €200 million. According to European Energy, it will be the largest agri-PV plant in Italy to date once completed, and will rank among the largest in Europe. Its planners calculate that it will generate a generous 405 GWh of solar electricity each year – enough to supply more than 135,000 Italian households.
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Agri-PV requirements fulfilled
As is typical of agri-PV installations, the project pairs solar generation with food production. Sheep and other livestock will graze beneath the elevated modules, ensuring the plant complies with Italian rules on the dual use of land for agriculture and photovoltaics. European Energy is also combining the installation with a reforestation programme and measures to enhance biodiversity across the site.
Refinancing is via a contract for difference, which European Energy secured at auction. Under the scheme, the electricity is sold on the exchange. If revenues fall below the price fixed at auction, the plant operator is reimbursed the difference; if marketing revenues exceed that price, the marketer pays back the surplus. This secures refinancing while meeting EU requirements, which now stipulate that overcompensation of projects must be prevented.
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Working with local authorities
The Italian tender process turns not only on the price of electricity production, but also on operational and generation efficiency, construction quality, scalability and the long-term performance of the plant. Installation quality and integration therefore play a decisive role. "The project has been developed in close dialogue with local stakeholders and authorities, with a strong focus on integrating the facility into the surrounding area," stresses Alessandro Migliorini, Marketing Director of European Energy Italy. "Alongside renewable electricity production, the project includes agricultural activities, mitigation measures and reforestation initiatives designed specifically for the local context."
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A project with solid revenues
The Sicilian plant adds to an already substantial portfolio for European Energy. "European Energy has established a strong development pipeline and local presence in Italy over the past 20 years. We continue to see significant investor interest in large-scale renewable energy projects with strong resource quality, long-term visibility, and integrated land-use solutions," said Filippo Ricci, Country Manager Italy at European Energy. "Our focus remains on developing projects that are robust from both an operational and investment perspective.”
Jens-Peter Zink, Deputy CEO of European Energy further commented that the large plant, with its solid yield prospects and secured revenues, makes for an attractive investment in the European renewables market. (su)
