Lightsource bp adds 78 MW Sicilian solar project to growing Italian pipeline

London — Lightsource bp has acquired a 78 MW solar project in Sicily from local developer EGI, taking its Italian solar development pipeline to 1.2 GW, the company said Feb. 17.

The move follows acquisition of an 845 MW solar portfolio in Spain from Iberia Solar announced Feb. 15. No price was put on either deal.

"The company will work in partnership with EGI to bring the project to ready-to-build status," Lightsource bp said.

It would then progress the project to financial close with a view to starting construction in 2022, and operation in 2023.

Lightsource bp now has over 100 MW in development in Sicily plus 11 utility-scale projects across southern Italy, for a potential 350 MW.

Across six regions in Italy, Lightsource bp's solar pipeline now totals 1.2 GW.

"Looking ahead, the Italian team's focus will expand to include the central and northern regions of Italy, as well as earlier stage projects," it said.

Slow process

Italy's latest renewable energy auction, FER 1, saw just 306 MW awarded on Jan. 26, from nearly 1.4 GW on offer.

Commenting on the low level of take-up, Enel Green Power Salvatore Bernabei recently said development of renewable energy projects in Italy was being held back by overcomplicated administrative processes, leading to delays.

Only 14 groups picked up capacity in the main auction round for solar or wind capacity, the largest being an 84 MW onshore wind project, Campo Eolico Ariano in the southern Campania region, while only 20 MW of large-scale solar was awarded.

With such little interest, the auction meant developers were able to negotiate small discounts to the Eur70/MWh ($85/MWh) starting price, with Contracts for Difference settled at a 2.00%-2.59% discount for the 20-year payment period, equivalent to Eur68.23-68.63/MWh.

The FER 1 auctions are designed to put Italy on a path to meeting its 2030 National Energy and Climate Plan targets, increasing renewable energy output by around 70 TWh, or 20 percentage points, to a 55% share in the overall generation mix.