Italy: Redelfi and WRM in 2.8GW BESS development agreement
Italy: Redelfi and WRM in 2.8GW BESS development agreement
Developer Redelfi and investor WRM Group have signed a term sheet to create a joint venture (JV) targeting 2.8GW of standalone battery storage investments in Italy over a three-year period.
The agreement establishes their plan to set up a JV entity which will be 51% owned by Redelfi and 49% owned by Flash S.r.l, part of private equity and real estate-focused WRM Group.
Enjoy 12 months of exclusive analysis
- Regular insight and analysis of the industry’s biggest developments
- In-depth interviews with the industry’s leading figures
- Annual digital subscription to the PV Tech Power journal
- Discounts on Solar Media’s portfolio of events, in-person and virtual
Or continue reading this article for free
The JV will invest in the development of battery energy storage system (BESS) projects in Italy with a target of 2.8GW over a three-year period.
Redelfi will handle the technical and operational development activities of the BESS projects through a development services agreement (DSA) between it and the JV entity, which will be signed within the next year.
WRM will retain a right of pre-emption on the purchase of the developed projects under the DSA, to be exercised at market conditions and up to a maximum of 1GW, notably below the 2.8GW target. The agreement also includes potentially using areas owned by WRM to develop BESS projects.
Davide Sommariva, chairman of the board of directors of Redelfi, commented: “The agreement with WRM Group lays the foundations for the creation of one of the most important Italian developers, the union of the different skills will allow us to gain a relevant share in the fast-growing market of energy transition.”
The announcement by the pair is the latest in a flurry of similar announcements by other firms looking to stake a place in the burgeoning grid-scale energy storage market in Italy.
In July, Developers Eku Energy and Renera Energy announced plans to deploy 1GW of BESS projects in Italy shortly after Altea Green Power revealed it was selling a 2GW early-stage pipeline. (On a related note, Altea and Redelfi have partnered to enter the Texas, US, energy storage market).
In June, a 1.5GW development agreement was struck between developers Emeren and Matrix Renewables for the Italian market.
Transmission system operator (TSO) Terna e stimates that it will need 71GWh of new energy storage by 2030 to decarbonise its energy sector in line with EU targets.
Multinational utility and IPP Enel is the most advanced here with 1.6GW already under construction coming online mainly in 2024.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”