PROJECT SOPHOCLES SOLAR PV AND BESS GREEN LOAN

The loan will finance a multi-year investment programme in small-scale solar photovoltaic plants (PV), across multiple sites in Italy. The PV plants total approximately 280 MWp, combined with 80 MW (4-hour) battery energy storage systems (BESS), and an additional 270 MW (4-hour) of standalone BESS.

The aim is to produce and store electricity from low-carbon sources, PV and BESS plants. As such, the project addresses the market failure of under-investment in clean energy generation due to the non-internalisation of the climate and environmental externalities. The project also supports EU Renewable Energy objectives and supports Italy in meeting its commitments with respect to renewable energy (RE) targets (65% RE by 2030) and greenhouse gas emission reductions, set out in the Integrated National Energy and Climate Plan (INECP) revised after the publication of the EU Green Deal. Solar PV plants contribute to the progression of the national and EU energy and climate goals, namely decarbonising electricity production in the EU and decreasing the reliance on fossil fuels. The project is therefore eligible under Article 309 point (c) common interest. Furthermore, certain regions where the portfolio of plants will be developed are classified as EIB Cohesion Priority Regions, thus contributing to developing less-developed regions. The investment programme is expected to be economically justified, as it will generate economic benefits, notably in terms of climate action, by stepping up investments in renewable energy, the creation of economic activity, as well as CO2 emission reductions.

This investment programme will generate environmental benefits by supporting both rooftop and ground based solar PV and BESS projects that help mitigate climate change. The solar PV and BESS plants fall under Annex II of the environmental impact assessment (EIA) Directive 2011/92/EU (as amended by Directive 2014/52/EU) according to which Member States shall determine whether the installation should be subject to a mandatory EIA based on defined criteria. Impacts on the environment from Solar PV and BESS plants typically stem from noise, dust, and increased traffic during the construction phase as well as visual and land use impacts during operation. These impacts are unlikely to cause any significant negative residual effects to the environment.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. The solar PV and BESS plants will likely be operating without exclusive or special rights within the meaning of the EU Utilities Directive 2004/17/EC and subsequent 2014/25/EU, hence private sector procurement procedures are expected to apply. Equipment and works may be purchased through a single Engineering, Procurement, and Construction contract or through several separate contracts. In the case that the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the European Commission will be duly informed, which will require the promoter to apply those rules.