Enfinity Global, a company specializing in renewable energies, has been awarded 189.6 million euros for the construction of eight solar power plants in Italy, representing a total capacity of 157.1 MW.
The projects, located in the Lazio and Emilia Romagna regions, are scheduled to come on stream in 2025.
This financing comes at a time when Italy’s energy infrastructure is being strengthened, and solar power is playing an increasingly important role in the energy mix.
Financing structured by European banks
BayernLB, ING and Rabobank are leading this financing via a club deal structure.
The package includes 127.4 million euros in senior non-recourse debt, 17.1 million euros for VAT and 45.1 million euros in credit lines for power purchase agreements (PPAs), photovoltaic modules and site dismantling.
These financial mechanisms minimize risk while maximizing returns for investors.
The long-term PPAs signed with A2A, Nova Aeg and another Italian manufacturer will guarantee stable marketing of the electricity generated.
The projects call for an annual production of 271 GWh, equivalent to the consumption of 100,000 households.
These new capacities are in line with the energy diversification objectives of Italy and the European Union, which support the integration of renewable energy sources to reduce dependence on fossil fuel imports.
Market strategies and outlook
The financing of these solar installations in Italy reflects the strategy of European banks to support projects aligned with the European energy transition.
According to the Q2 2024 Dev&Deals report by Elemens, Enfinity is positioned as the leading independent power producer (IPP) in terms of authorized solar projects in Italy, with a portfolio of 805 MW.
This project also contributes to reinforcing its leading position in the IPP market, with 388 MW already committed with leading players.
Carlos Domenech, CEO of Enfinity Global, stresses the importance of this financial partnership with European banks, saying it sets new standards for the development of energy infrastructure in Italy.
The support of financial institutions for these projects is crucial for securing long-term investments in the sector.
Banks step up their support for renewable energies
BayernLB, represented by Karin Schramm, Head of Renewables, says the Italian market remains a priority, with several projects underway to support the local energy transition.
Diederik van den Berg, Managing Director of ING’s Renewables & Power division, points out that this investment is in line with the bank’s objective of tripling its financing in renewable energies to 7.5 billion euros a year by 2025.
For his part, Rabobank’s Marc Schmitz points to growing investor interest in long-term renewable energy projects in Italy and beyond.
This trend can be explained by the stable revenue streams generated by well-structured APPs and the increased competitiveness of solar technologies.
Competitive environment and development challenges
Italy continues to position itself as a key market for solar investments.
The support of renowned financial players such as BayernLB, ING and Rabobank for Enfinity illustrates confidence in the development of renewable energies through robust, well-structured financial models.
These projects come at a time when access to financing remains crucial for the expansion of large-scale renewable energy capacity.
Financing decisions are influenced by market performance and long-term profitability forecasts.
Enfinity and its partners rely on a combination of risk management, revenue stability and cost optimization to maximize the efficiency and returns of these projects in Italy.
