European Energy A/S signed a long-term power purchase agreement to supply the output from 300 MW of proposed Italian solar farms to Swiss utility Axpo Power AG.

The Danish developer said the contract, with a term of more than 12 years, is longer than traditionally seen on the Italian power market or in Europe.

"This agreement is a significant step forward for us in the Italian market. The length and the price of the agreement ensures bankability, which will allow us to realize substantial parts of our Italian project pipeline," European Energy CEO Knud Erik Andersen said in a Jan. 15 release.

The terms of the agreement were not disclosed.

Headquartered in Søborg, Denmark, European Energy builds, develops, finances and manages wind and solar farms in Europe and has up to 150 MW of ready-to-build projects in Italy.