JOINT VENTURE SIGNED BETWEEN GLOBAL CLEANTECH CAPITAL (GCC) AND PIRELLI AMBIENTE FOR INVESTMENTS IN THE PHOTOVOLTAIC SECTOR
- THE NEW JV COMPANY, NAMED SOLAR UTILITY, WILL BE HELD 50% BY PIRELLI AMBIENTE AND 50% BY GCC
- SOLAR UTILITY PLANS TO GENERATE, IN ITALY, ABOUT 50 MW OF ELECTRICITY OVER 5 YEARS
- THE FORECASTED INVESTMENT IN EQUITY IS ABOUT 24 €M
Milan, 03 July 2007 – Pirelli Ambiente, a company within the Pirelli & C. Group active in the field of renewable energy, and Global Cleantech Capital (GCC), a clean energy private equity fund, signed today an agreement to establish Solar Utility SpA, a joint venture in the photovoltaic energy sector.
Solar Utility Spa will be held in equal parts by Pirelli Ambiente and GCC. The new JV Company plans to invest about 24 €M in equity, over the next 5 years, in roof based solar energy systems for the production, in Italy, of about 50MW of clean electricity.
Solar Utility will install and own solar systems for commercial and industrial property owners on their property, and sell them green electricity at competitive prices in return. The JV Company will also sell completed solar energy producing projects to investors interested in stable long term cash flows as guaranteed by the government’s 20 year feed-in tariff according to Legislative Decree of 19 February 2007.
Italy, due to its sheer sun intensity, or “insolation” and the government’s incentive scheme, is projected to be one of the top European countries for solar energy production. The Italian market, in fact, is one of the most attractive in Europe given that it has the highest insolation in the Mediterranean area: thanks to natural factors Italian solar energy production could be 30% higher than the current solar market leaders Germany or Japan. Italy is expected, moreover, to become the first European country to reach ‘grid parity’ where the cost of solar power will equal the price of grid electricity – further stimulating the sector’s growth. The Italian photovoltaic industry is already growing at more than 30% per year, and this pace is expected to accelerate in the next 5 years.
Pirelli Ambiente, already active in the renewable energy sector with the CDR-P, the high grade fuel from municipal waste, has decided to further enlarge its activity by investing in photovoltaic energy production. The choice of a leading partner like GCC guarantees mixing Pirelli’s know-how with the experience of a player that has operated successfully for years in the renewable energy sector.
GCC is pleased to add Solar Energy to its portfolio as it aims to create a leading Italian renewable energy producer. GCC has made a clear choice to partner with Pirelli for its experienced team and its strong brand in order to accelerate fast growth – a key success factor in the emerging Italian solar market. GCC also aims to apply new PVtechnologies such as solar energy systems embedded in building materials; Building Integrated Photo Voltaic (BIPV). Italy’s strong culture of world class design offers a great opportunity to become a leader in architectural integration of photovoltaic materials.
Pirelli Ambiente is the Pirelli Group Company operating in the business of providing solutions for the environment and for sustainable development. Pirelli Ambiente can offer the market a vast range of solutions with low environmental impact and high-tech contents of the highest order. The company is focused on products and processes that are increasingly eco-compatible and on innovative solutions..
Global Cleantech Capital, is a leading investor in the energy and cleantech sectors in Europe and North America. GCC focuses on solar energy, green buildings, wind energy, bio-energy and advanced materials in efforts to grow renewable energy production capacity as well as energy efficiency, thus driving the decrease in carbon footprint. Its Investment Team invested in over 18 companies in the renewable energy sector over the past 5 years helping to establish two global leaders in the solar industry, Renewable Energy Corporation [REC] in Norway and QCells in Germany, with a combined market cap of over 18 billion euro.