Takeaways

• Zelestra has secured around $14 million (€13 million) in green financing for its first Italian solar projects.
• Long-term power purchase agreements (PPAs) with BKW strengthen bankability and reduce revenue risk.
• The projects highlight Italy’s growing role in Europe’s solar and energy storage expansion.

Zelestra has closed financial signing for its first renewable energy assets in Italy, marking a key milestone in the company’s European growth strategy. The financing covers two utility-scale solar projects: A 6.5 MWdc plant in Ginosa, Puglia, and a 9.5 MWdc plant in Bellomo, Sicily.

The projects were financed through an approximately €13 million senior debt green package arranged with BPER, which also acted as hedging and agent bank. While modest in size, the deal is considered meaningful in the current Italian solar market, where developers continue to face uneven permitting timelines and fluctuating revenue structures.

Both solar plants will be built under long-term power purchase agreements (PPAs) with BKW, a move that significantly improves project bankability. Long-term offtake contracts with creditworthy counterparties are increasingly seen as essential in converting merchant solar projects into infrastructure-grade assets. Although pricing and contract duration were not disclosed, Zelestra said the PPAs helped secure favourable debt terms and reduced exposure to power price volatility.

Read More: How Traceability and Finance Are Powering Solar Sustainability

Together, the Ginosa and Bellomo projects are expected to displace around 8,500 tonnes of carbon dioxide annually and generate enough electricity to supply approximately 10,000 Italian households. For lenders, such metrics support ESG reporting and alignment with green loan frameworks. For policymakers, the projects contribute incremental capacity toward Italy’s renewable energy targets and efforts to reduce dependence on imported fossil fuels.

Commenting on the financing, Eliano Russo, CEO of Zelestra Italia, said the agreement represents a strong endorsement of the company’s disciplined development approach and growing bankability in Italy. He added that Zelestra plans to double its 1.4 GW Italian pipeline by 2026, with a focus on bringing more solar and battery energy storage system (BESS) projects into construction.

Italy has emerged as one of Zelestra’s fastest-growing markets, with over 1.4 GW of solar and storage capacity under development. Storage is becoming increasingly critical, particularly in southern Italy and Sicily, where high solar penetration can strain grids and depress midday prices. Zelestra recently announced an initial offtake agreement for a two-gigawatt-hour battery storage project in northern Italy, which could rank among Europe’s largest standalone battery assets if completed as planned.

The company has also secured contracts for nine solar projects under Italy’s FER X auctions, allowing up to 168 MW of new capacity to proceed with regulated support. While auction volumes remain smaller than in some northern European markets, the framework is viewed as a stabilizing force for long-term capital deployment.

Also Read: Rönesans Enerji Launches Green Finance Framework

For investors, the deal highlights three clear trends: The central role of bankable PPAs, the growing necessity of storage alongside solar, and Italy’s rising influence in Europe’s clean energy investment landscape.

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Source: ESG NEWS