There is a close link between the recently announced partnership between European Energy and Limes Italia and the incentivised renewable electricity purchase contract signed between European Energy and Axpo Italia.
Let's start with the first. Limes and European Energy have stated that they have formed a joint venture to develop and implement wind power and renewable plant projects in Italy up to a maximum power of 400 MW by 2020. The two contractors will set up various project companies in which they will participate with equal shares. The plants, which should be built in various regions including Basilicata, Puglia, Lazio and Tuscany, will be in grid parity, i.e. without public incentives. The total investment, if all 400 MW were built, is estimated by experts at 500 million.
European Energy (assisted by the lawyer Giuseppe Velluto of the law firm Gianni Origoni) is a Danish investment company that closed 2017 with 187 million in revenues, 34 in margin gross operating income (Ebitda) and 21 net income.
Limes Italia is instead a company based in Milan (50% owned by Limes Renewable Energy) born only in 2017 from the initiative of some managers in the sector with the intention of developing projects in the field of renewables internationally.
The first fallout of the joint venture is a framework agreement announced yesterday between European Energy and the Swiss Axpo, the Baden-based company active in the production, distribution, sales and trading of power. Under this agreement, Axpo undertakes to purchase for a period of over twelve years the production of 300 MW photovoltaic by European Energy - of which 150 are already authorized - gradually as the plants become operative.
A source however reports that the sale price of the energy produced should be indexed (we do not know to which parameter: certainly a parameter that allows banks to finance the operation).
The same source reports that from the examination of the regional bulletins today, there are about 300 MW in photovoltaic projects already authorized. Meaning that 50% of nationally authorized projects would already be available for European Energy. A surprising result for such a young company.
References
Powernews (16/01/2019) European Energy, prima una joint venture con Limes per sviluppare impianti, ora un Ppa a 12 anni per vendere elettricità ad Axpo. Available at: http://www.powernews.eu