Edison and Kgal sign a Power Purchase Agreement for a 150 MW photovoltaic plant

The plant will be one of the largest photovoltaic merchants in Italy and will go into operation in the second half of 2024. With an annual output of around 240 GWh, it will avoid the emission of more than 100,000 tonnes of CO₂ equivalents per year into the atmosphere.

Milan, October 10, 2023 - Edison, a leading energy transition company with 140 years of industrial leadership, and the German investment manager KGAL`s renewable energy fund KGAL ESPF 4 have signed a Power Purchase Agreement (PPA) for the construction of a photovoltaic plant in the Lazio region of Italy. With an installed capacity of around 150 MW, the plant will be one of the largest photovoltaic plants in Italy.

The agreement has a ten-year term and provides for the collection by Edison of all the renewable energy produced (certified by the relevant guarantees of origin), while KGAL will take care of the construction and subsequent operational management of the asset. According to estimates, the plant will produce around 240 GWh per year, avoiding the emission of more than 100,000 tonnes of CO₂ equivalents into the atmosphere per year.

«Thanks to this agreement we have made it possible to create a strategic infrastructure for the energy transition and the achievement of the 2050 decarbonisation targets», commented Fabio Dubini, Executive Vice President Gas & Power Portfolio Management&Optimisation at Edison. «We at Edison have an important organic development plan to increase green installed capacity from the current 2 GW to 6 GW by 2030, accompanied by the goal of increasing renewable production to 40 per cent. With agreements like this one with KGAL we offer an important stimulus to the market in bringing new renewable megawatts on the ground and at the same time we make our portfolio more competitive and diversified».

" Italy is one of the most important markets in our European renewables portfolio. The country scores with strong solar radiation, windy regions and a political will to drive the expansion of renewable energy,”, says Katrin Werner, Head of Project Implementation Sustainable Infrastructure at KGAL. “We are very pleased to sign this PPA with industry leader Edison, supporting their ambitious decarbonisation targets. For KGAL ESPF 4 investors this PPA represents another attractive, long-term revenue stream.”

The plant, which is the subject of the agreement, will come into operation in the second half of 2024. The energy generated will be collected by Edison and made available to its customers interested in a multi-year supply contract. The partnership with KGAL consolidates Edison's leadership in the market management of renewable plants of third-party producers and is part of the Group's broader strategic plan that envisages investments of EUR 5 billion in the renewables sector between now and 2030.

The negotiation of the contractual terms between the parties involved Edison's Power Origination team supported by the Legal & Corporate Affairs and Financing & Treasury divisions, while KGAL's negotiation team was supported by the law firm Green Horse.