Encavis Acquires 18.4 MW Solar Projects in Italy

• Encavis AG enhances its green portfolio by acquiring two solar projects in Italy, boosting capacity by 18.4 MW—and paving the way for sustainable energy growth in Emilia-Romagna.

German renewable energy operator Encavis AG has acquired two shovel-ready solar projects in Italy, increasing its generation capacity by 18.4 MW. The projects, sold by Hive Energy and Sunleonard Energy, are located in the Emilia-Romagna region and are expected to produce approximately 28 GWh annually. Construction is set to begin soon, with commissioning planned for the end of 2025.

The electricity generated will be sold under a long-term power purchase agreement to an industrial customer. Ethical Power, a UK-based solar and storage specialist, has been appointed as the engineering, procurement, and construction contractor for the projects. Globally, Encavis boasts a portfolio of about 3.5 GW in generation capacity, with an additional 1.2 GW under development.

How will Encavis AG's new solar projects impact Italy's renewable energy landscape?

• Contribution to Renewable Targets: The addition of 18.4 MW from Encavis AG's solar projects will bolster Italy’s commitment to increasing the share of renewable energy in its overall energy mix, which is crucial for achieving both national and EU-wide sustainability targets.
• Job Creation: The construction and operation of these solar projects will create job opportunities in the Emilia-Romagna region, both in the short term during the construction phase and long-term through ongoing maintenance and operational roles.
• Investment Attraction: Encavis AG's investment signifies confidence in the Italian renewable energy sector, potentially attracting further domestic and international investments. This could catalyze additional projects and innovations in renewable energy technologies.
• Grid Stability and Energy Independence: The projects will contribute to a more resilient electricity grid in Italy, supporting energy independence and reducing reliance on fossil fuels, especially in times of peak demand or supply constraints.
• Partnership and Knowledge Sharing: Collaboration with companies like Ethical Power for engineering and construction paves the way for knowledge transfer and sharing of technological expertise, potentially elevating local capacities and standards in solar project implementation.
• Economic Boost: The expected generation of approximately 28 GWh annually supports local economies by providing clean energy, stabilizing electricity prices for industrial customers, and potentially leading to lower energy costs for consumers overall.
• Environmental Benefits: In addition to the reduction in carbon emissions associated with increased solar generation, the projects will also promote biodiversity through responsibly managed land use, which can create healthier ecosystems in the region.
• Setting a Precedent: This acquisition and development could set a precedent for future solar projects in Italy, demonstrating the feasibility and advantages of large-scale renewable energy developments, which may encourage further governmental and private sector initiatives.
• Long-Term Power Purchase Agreements: The long-term power purchase agreement (PPA) secured for the electricity generated provides financial stability and predictability for both Encavis AG and the industrial customer, fostering confidence in renewable energy investments in the region.
• Technological Innovation: As Encavis AG rolls out these projects, advancements in solar technology and efficiency improvements are likely to be implemented, contributing to the overall reduced cost of solar energy production in Italy.