Summary sheet
Multi-annual investment programme into small-scale photovoltaic plants with a total installed capacity of c. 220MW, at geographically dispersed locations throughout Italy.
The project produces electricity from low-carbon sources, solar photovoltaic (PV) plants, in Italy. It thereby and addresses the market failure of under-investment in clean energy generation due to the non-internalisation of the climate and environmental externalities. The project 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.
The project will enable the integration of mature variable renewable generation technologies in the market through a market-competitive auction system and through subsidy-free, market-based instruments (power purchase agreements). The plants will employ the latest solar PV module technologies. The project addresses the market failure of negative climate and environmental externalities through the reduction of carbon emissions and air pollution. The project quality is very good. It offers a valid contribution to national and EU climate and energy targets, and supports multiple EIB policy goals, including Climate Action.
The financing of this programme is in line with the Bank's lending priority objectives on Energy (Renewable Energy) as well as the transversal objectives on Climate Action, Environmental Sustainability and Social and Economic Cohesion.
The promoter has sufficient capacity with a significant track record of installed and operating similar sized solar energy projects in Italy.
The support of the EIB in leading this project to completion is significant, in particular because of the degree of exposure to merchant risk. EIB acts as cornerstone lender, and is expected to improve the probability of a timely financial close, by giving comfort and crowding-in other private financiers partly relying on the Bank's structuring expertise.
This investment programme will generate environmental benefits by supporting both rooftop and ground based solar PV projects that help mitigate climate change. The Solar Photovoltaic plants fall under Annex II of the 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 environmental impact assessment (EIA) based on defined criteria. Impacts on the environment from Solar PV 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 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 EPC 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 EIB Bank would duly inform the European Commission Services and would require the promoter to apply those rules.