Under the power purchase agreement (PPA), European Energy will supply clean energy generated by its industrial solar photovoltaic (PV) farms that have a combined capacity of nearly 300MW in Italy.
European Energy CEO Knud Erik Andersen said: “This agreement is a significant step forward for us in the Italian market.
“The length and the price of the agreement ensures bankability, which will allow us to realise substantial parts of our Italian project pipeline. We have a great relationship with Axpo and we hope to build on it, both in Italy and other markets where Axpo and European Energy have interests.”
The PPA is reported to be the first of its kind in Italy, as large-scale solar PV is relatively new to the country’s PPA market.
Although the companies have not revealed exact details of the agreement, it is understood to cover 12 years. This period is reportedly longer than similar agreements in the Italian power market and elsewhere in Europe.
Axpo Italia CEO Simone Demarchi said: “This is a significant moment for Axpo Italia ; we are proud to support and help European Energy delivering their ambitious targets on the Italian market. Solar is the fastest-growing form of energy, and Italy is a market with tremendous potential where we already are seeing great opportunity.
“Axpo has bold ambitions to be one of the key players of the transition to low carbon energy and I have the personal conviction that we have the right risk appetite, the ability and knowledge to have a real impact by working alongside appreciated partners such as European Energy .”
European Energy has a substantial pipeline of projects in Italy. With up to 150MW being ready-to-build, the projects are in various stages of development.