Ente Nazionale Idrocarburi, better known as Eni SpA, the Italian oil producer has taken another step in the renewable energy space with investment in 3 solar power projects with a combined capacity of 140 MW. It has signed an agreement with Spanish solar PV company X Elio to acquire the 3 projects in Spain.
Projects will be transferred to Eni post regulatory approvals. The Italian company will undertake project construction and will also be responsible for electricity commercialization.
Following this development, the 2 companies say they are now into discussions for a larger strategic collaboration to develop renewable energy projects in Spain. Eni explains this is part of its business plans to grow up to 1 GW of renewable energy capacity in Spain over the next 5 years to contribute to its 5 GW installed capacity aim for 2025.
Eni CEO Claudio Descalzi explained the significance of this 'remarkable investment' by saying, "The development of photovoltaic projects is consistent with our strategy in support of the energy transition and is a key element of Eni's commitment in reducing CO2 emissions. Furthermore, this acquisition allows for the future deployment of existing synergies with the power & gas retail business."
Under its Long-Term Strategic Plan to 2050 and Action Plan 2020-2023 announced in February 2020, Eni aims to grow its renewables capacity to 55 GW by 2050 planning development in mainly OECD countries to supply clean power to its clients, and reaching there with interim targets of 3 GW by 2023 and 5 GW by 2025.
Following these decarbonization targets, Eni's joint venture with Falck Renewables announced acquisition of US based solar and wind project developer Building Energy Holdings in August 2020 (see Falck & Eni To Acquire US Wind & Solar Developer).