Renantis and Reden have signed a short-term power purchase agreement (PPA) regarding 11 of Reden’s solar farms in Italy.
The solar farms have a total installed capacity of 90MW.
Solar developer Reden has partnered with Renantis, an independent power producer (IPP) in the renewable energy market, to sign the 18-month PPA.
Renantis will be the offtaker for the dispatch of the energy produced by 11 of Reden’s solar plants in Italy upon their completion, which is expected by the second half of 2024.
The 11 solar plants are distributed across the country with five plants in northern Italy, five in central Italy and one in the south.
The plants allow for the rehabilitation of degraded or abandoned areas, generating green electricity and contributing to the country’s energy transition.
The signing of the PPA provides Reden with an opportunity to optimise its revenue streams by securing favourable merchant prices prior to transitioning to GSE for the Feed-in Tariff (FiT) scheme.
The operation aims to offset any additional costs incurred by Reden during the project’s development phase, including for the depollution of some of the sites prior to construction.
Margherita Tassi, Power Originator Italy & UK of Renantis, said: “We are very pleased with this offtaking contract signed with Reden which adds more capacity to our energy management market activities portfolio.
“Reden is an important group to partner with in Italy, and we are happy to start a collaboration working towards the energy transition and for the growth of clean energy production in the country.”
Luca Crisi, Country Manager of Reden Italy, said: “We are delighted with this partnership, which underscores our dedication to building environmentally friendly power units on one hand, and sound relationships with all market players and third parties on the other.
“Several of our PV plants have been established on previously polluted sites, which we have rehabilitated at our own expense.
“Our focus on repurposing disused areas and revitalising abandoned quarries and industrial zones demonstrates our commitment to fostering regional sustainability in collaboration with local communities.
“The 11 plants covered by this agreement mark the initial phase of a larger project comprising 24 photovoltaic units, all with the same objective: producing low-carbon energy in harmony with the local ecosystem, be it environmental, social or economic.
“By adopting this approach, Reden has now reached cruising speed in Italy as well.”