JV between Cogeme S.p.A and the European Energy Efficiency Fund to support Brescia become an energy resilient city
The European Energy Efficiency Fund (eeef) and Cogeme Nuove Energie S.r.l., a 100% owned subsidiary of Cogeme S.p.A., are pleased to formalize a Joint Venture (JV), named Cogeme Green S.r.l. that is aimed at generating solar powered renewable electricity from 14 small scale PV plants.
This partnership between Cogeme, which is one of the first public limited companies in Italy with 100% public capital from 60 municipalities in the provinces of Brescia and Bergamo, and eeef, will attract financing through a project finance structure, will benefit from economies of scale for project contracts and deliver stable predictable electricity volumes under long-term Power Purchase Agreements (PPAs).
Traditional project finance approach typically struggles to support stand-alone small scale PV plants. However, the current set-up of Cogeme Green not only allows financing such PV plants under one project umbrella but also benefits from lowering of costs due to standardizations at JV level. By combining €15 million equity from eeef and Cogeme, with € 35 million senior funds from local banks, Cogeme Green S.r.l. will have necessary total capital for implementing ca. 55MW greenfield PV plants.
Cogeme is the active industrial partner in the JV and is entrusted with the responsibility to originate, implement, maintain and commercialize the PV plants. It wants to already hit the ground running with first batch of 5 ready to build (RtB) PV project in Lombardia region for ca. 17.5MW installed capacity. In parallel, the next batch of RtB PV projects are being finalized to the included in the JV shortly.
The clean renewable electricity output will be supplied to clients that are mainly, communities, businesses and industries in and around Cogeme territory under long-term PPAs. In total and over the long term, the JV should bring benefits to the region, to Cogeme, to the inhabitants, and to the end-clients in terms of lower carbon footprint, business volumes, employment and stable energy bills, respectively.
Giacomo Fogliata, the President of Cogeme S.p.A, commented: “Thanks to eeef fund to believe in this joint venture that for Cogeme Group will be another step of improving the relation with its territory and guarantee a more sustainable energy market for all its citizens”.
Paolo Paoletti, the General Manager of Cogeme Nuove Energie S.r.l., commented: “This accord will grant Cogeme Nuove Energie to be a green energy producer and support its energy portfolio of “sustainable” energy that day by day become a key aspect of the energy transition”.
"This, one of its kind, direct partnership with Cogeme S.p.A., targets grass root level initiatives at the municipal level with the aim to deliver multi-dimensional benefits on a long-term basis to the economy, employment, energy resilience and environmental sustainability, all at the same time " said Rahul Pratap Singh and Didzis Berzins, Investment team to the European Energy Efficiency Fund.
About Cogeme S.p.A
Cogeme S.p.A. is one of the first joint-stock companies of municipalities in Italy. The shares are wholly owned by 60 shareholders from the provinces of Brescia and Bergamo. Founded in 1970 as the General Company of Methane, with the aim of methanizing Franciacorta, in the following years it increasingly outlined its connotation as a "Society of Municipalities", as an effective tool for managing services by local authorities that allows economies of scale, technologies and quality of services.
About Cogeme Nuove Energie S.r.l
Cogeme Nuove Energie is acting in the field of energy, gas and district heating dedicated to its shareholders, its territory and to the Italian energy market. The company has the aim to be a “green energy partner” for all its clients supporting them in the energy transition.
About European Energy Efficiency Fund (eeef)
The European Energy Efficiency Fund (eeef) is dedicated to supporting energy efficiency and renewable energy projects across Europe. Established by the European Commission, eeef provides financial and technical assistance to projects that contribute to the EU's climate and energy goals.