The Italian branch of the South African multinational group Sasol has formalised an agreement with GreenGo for the supply of green electricity for its Italian industrial sites in Augusta, Sarroch and Terranova.
The agreement, which is pay-as-produced, will see GreenGo supply electricity from five photovoltaic plants in three Italian regions for a total capacity of 24.5MW.
For GreenGo this is the first CPPA it has signed as part of the company’s road map to becoming an IPP in the context of Italy’s energy transition.
In the same agreement, Sasol Italy will provide for the collection and balancing management of the energy produced within its purchase portfolio for the Italian sites.
The plants, currently under construction, are expected to enter commercial operation in the first half of 2025 and will produce 45 GWh per year, covering more than 20% of the total energy consumed by Sasol Italy’s industrial sites.
The agreement, which will last ten years, will come into effect as soon as the plants go into commercial operation and provides for a pricing system.
This comprises a zonal price remuneration with a dynamic discount, a floor price, which is also dynamic, able to guarantee the electricity produced by the photovoltaic plants and a cap price that allows Sasol to protect itself from any price shocks.
Carlos R Zanol, head of PPA and regulation at GreenGo, said: “The dynamic value of the pricing system allows us to offer the PPA an extreme commercial robustness to the contract by targeting the economic sustainability of our first investment as an IPP.
“Achieving a high level of bankability and an adequate system of guarantees was the strategic objective of this transaction with a global player like Sasol.”
Sebastiano Durante, manager of strategic sourcing energy & emissions of Sasol Italy, added: “This partnership is part of a broader strategy in the name of sustainability of Sasol Italy through the increasing use of renewable energy quotas for its Italian industrial sites, where this long-term commitment represents the concrete demonstration of a social responsibility towards the implementation of the energy transition and towards our goal of reducing emissions.”