Why Italian Solar Energy Capacity is Getting a €100m Boost
The European Investment Bank (EIB) has facilitating a boost to Italy's renewable landscape through a €100m (US$102.9m) green loan to Iberdrola for a new photovoltaic installation in Sicily.
Backed by SACE's Archimede Guarantee, this project is not just a financial transaction but a cornerstone in Italy's journey towards an eco-friendly future, playing a critical role in meeting the European Union's ambitious climate goals."Thanks to this EIB loan and SACE's support at Iberdrola, we will continue to make progress in Italy's energy transition, with this new renewable project that will allow to produce clean energy equivalent to the consumption of 154,000 homes,” says Valerio Faccenda, CEO of Iberdrola Italy.
Gearing up Sicily with solar power
Set against the picturesque landscapes of Enna and Catania, this new photovoltaic plant is an engineering marvel poised to start operating this year.
The facility boasts an impressive capacity of 242.78MWp and is expected to churn out around 400GWh yearly. That's enough energy to power approximately 154,000 homes, transforming how energy is produced and consumed in the region.
- EIB financing is 70% backed by SACE's Archimede Guarantee
- The guarantee provides market-based coverage for financings and bonds with durations of up to 25 years
- The project aligns with the REPowerEU initiative, aimed at reducing dependence on Russian fossil fuels and accelerating the green transition
Employing cutting-edge technologies, the project focuses on high energy efficiency while minimising environmental footprint.
The initiative will not only power homes but also boost local job markets and stimulate economic prosperity.
Facilitators of the green transition
The EIB, under the ownership of the EU Member States, is not new to the climate action scene.
In 2023 alone, the EIB Group, which includes the European Investment Fund, committed to €88bn (US$90.6bn) in new financing across numerous projects, expected to leverage approximately €320bn (US$329.4bn) in investments.
These efforts support 400,000 companies and 5.4 million jobs.
The EIB focuses on climate action, with 57% of its 2023 activity in Italy dedicated to climate and environmental sustainability.
This project aligns perfectly with the Paris Climate Accord, and the EIB is steadfast in its goal to facilitate €1tn (US$1.03tn) of investment in climate action and environmental sustainability by 2030.
"The EIB remains a key partner for Italy in the renewable energy sector,” explains EIB Vice-President Gelsomina Vigliotti.
“The EIB plays a crucial role in attracting foreign investors to the country with the aim of promoting environmental sustainability, social cohesion and economic growth."
On the other end of the spectrum, SACE, steered by the Italian Ministry of Economy and Finance, extends crucial financial underpinning and insurance solutions to bolster businesses and the broader national economic structure.
With this strategy, SACE is aligned with Italy’s Green New Deal, managing a massive portfolio worth €260bn (US$267.6bn), benefiting approximately 50,000 firms across the globe.
Ranked as the most sustainable company in the world in 2024 by Sustainability Magazine, Iberdrola is a global leader in the energy sector at the forefront of the sustainable energy transition.
Iberdrola is dedicated to propelling the sustainable energy narrative forward, underpinned by a hefty green financing docket exceeding €57 billion (US$58.7bn).
A Concerted Effort for Sustainability
The partnership between EIB, SACE and Iberdrola in Sicily is not merely a financial deal but a bold statement in the sustainable energy realm.
“We are proud to partner with EIB alongside Iberdrola for this paramount investment in Sicily in the renewable sector, a project that will boost productivity, competitiveness and will create new job opportunities,” says Alessandra Ricci, SACE CEO.
“With this aim, since the start of Garanzia Archimede operations last June we have approved over 4.9 billion transactions to enhance Italy’s growth potential.”
This agreement is a testament to the heightened corporate commitment towards renewable energy, highlighting financial institutions' pivotal role in facilitating a greener energy future.
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