Limes Renewable Energy consolidates its role as a pure developer of renewable energy projects worldwide and completes the sale of 287 MW in Italy to an independent energy producer with a strong presence in the country. Headquartered in Milan, with offices in Santiago, Chile, and Hanoi, Vietnam, Limes has sold a portfolio equally divided between photovoltaic and wind power, including 50 MWp of already authorised solar photovoltaic plants.
Once operational, the portfolio will generate approximately 669 GWh per year in support of Italy's energy transition. ‘The transaction is part of a process through which, through partnerships or the sale of authorised projects, we have immediately demonstrated the quality of the final product,’ explains Limes' managing director, Cristiano Spillati, to MF-Milano Finanza.
Authorisations: an all-Italian problem
‘The various counterparties are mainly institutional investors who have shown us over time that they appreciate our approach.’ The buyer has asked Limes to continue supporting the development of the other projects until they are ready to build, assisting the international investor in finalising the authorisations.
These authorisations continue to be one of the biggest obstacles to the success of the energy transition in Italy. ‘I would describe the approach chosen by the Ministry of the Environment as random. In the last quarter, they have approved four projects all at once, but we would not be surprised if we did not hear anything for the whole of next year. Unfortunately, it is really difficult.’
Limes currently has a portfolio of around 1.5 gigawatts in Italy. This portfolio ‘has followed the choices made by local administrations’, explains the manager: ‘Sicily and Lazio are the regions that have authorised the most so far and, as a result, the largest part of our authorised projects are located there. We have almost more than 1 gigawatt in the screening phase, but we always have to deal with bureaucracy, which is not easy.’ This is also because it is an entirely Italian problem.
Vietnam: the strategy for emerging markets
Limes knows this well, as the company has made emerging markets its strength (and its starting point). ‘We started by moving into two markets: one mature, Italy, and one emerging, Vietnam. We always assess the risks and try to diversify as much as possible. But before entering a country, we try to identify the growth curve of the sector,’ he explains.
‘When we entered Vietnam, we found a country made up of manufacturing industry and powered mainly by coal. Clean energy did not exist. So we started to study and plan. We realised that it would take patience and, above all, presence. So we invested at the local level: today we are part of an economy that is growing at 7-8% per year, with energy demand reaching +10%. In regions like this, direct contact remains a decisive factor. At Limes, we are committed to meeting the highest standards of bankability, while involving local workers.’
A new business model
With a total portfolio of around 6 GW under development, the company continues to expand its global presence. ‘After all, Limes also means “the road to new markets”,’ explains the manager, hinting that there is more in the pipeline. ‘We are trying to evolve. Until now, we have positioned ourselves as a pure developer, but what we would like to do now is move to a full IPP (independent power producer, ed.) model or a hybrid model, thus maintaining minority stakes (in projects, ed.) and providing asset management services. Obviously, it will depend on the markets.’ Where do you start? ‘Obviously from Italy: we want to build our first small plants and become independent electricity producers’.