Intesa Sanpaolo invests €32 million in GreenGo solar plant developments

Intesa Sanpaolo announces €32.6 million of financing to support the development projects of GreenGo, a Bologna-based energy operator specialising in the design and construction of large-scale renewable energy plants.

This initiative is part of the banking group's €8 billion fund set aside for the transition towards a circular economy, furthering its commitment to supporting investments related to the National Recovery and Resilience Plan (PNRR). This scheme is one that many are comparing to the UK Government’s newly launched GB Energy, as it uses EU funding available to Italy combined with private funding to invest in renewable domestic energy infrastructure.

This significant investment will allow GreenGo to construct eight photovoltaic plants with total capacity of 41.8 MW. There will be four plants in Calabria (22.8 MW), three in Sicily (13.7 MW), and one in Marche (5.3 MW). The project contains a mixed commercial portfolio comprising Corporate PPAs with Sasol Italia Spa (47%), incentive tariffs from the GSE (17%), and a full merchant model (36%) for the sale of green electricity produced by the plants, which are currently under construction and expected to become operational in the first half of 2025.

The transaction was finalised by Intesa Sanpaolo’s Banca dei Territori Division in synergy with the IMI Corporate & Investment Banking Division, through the Corporate Finance Mid Cap structure. The Circular Economy Desk of Intesa Sanpaolo Innovation Center, the Group’s company dedicated to innovation and promoting the circular economy model, also collaborated on the credit line which is part of the €8 billion circular fund established by the Group to support businesses in their energy transition.

GreenGo has an ambitious development plan projecting over €300 million in investments by 2026 and expanding its capacity of solar, wind, and storage plants by more than 350 MWp. GreenGo estimates that building and managing these plants will create more than 500 jobs, as part of a renewable energy pipeline currently totalling over 1,800 MW at different stages of development, positioning the Bologna-based company among the “utility-scale” operators leading Italy's energy transition.

Giuseppe Mastropieri, CEO of GreenGo said: “This transaction marks the start of GreenGo’s new phase as an Independent Power Producer (IPP). After financing the first 42 MW, we are now starting the construction of another 40 MW of solar capacity to bolster our installed capacity ahead of 2025, a key year when our platform expects to achieve a minimum target of 250 MW in additional authorised green projects. The financing of this project by a prestigious institution like Intesa Sanpaolo showcases the competitiveness of our business model and how a “system” can be created between SMEs and banks to successfully implement virtuous green economy models.”

Alessandra Florio, Regional Director for Emilia-Romagna and Marche at Intesa Sanpaolo said: “This financing supports GreenGo in developing an efficient circular economy model capable of ensuring the virtuous management of energy. For our businesses, sustainability is an essential asset, and Intesa Sanpaolo offers all the resources and tools needed to support their development plans, capturing both current and long-term opportunities. To date, through the S-Loan and Circular Economy financing lines, we have disbursed €1.5 billion to businesses in Emilia-Romagna for investments aimed at environmental and social sustainability.”

The transaction was supported by: Green Horse, legal advisor for GreenGo; DLA Piper, legal advisor for Intesa Sanpaolo; EOS Consulting, technical advisor; KPMG, model audit advisor; AFRY Management Consulting, market advisor; AON, insurance advisor; and Trotter Studio Associato, tax advisor for GreenGo.