Published on 20th May 2021
Italian energy firm ERG has signed a ten-year power purchase agreement (PPA) with information and communications technology (ICT) group to supply 3.4 TWh of wind power.
The PPA was signed by ERG Power Generation and Telenergia, subsidiaries of the ERG and TIM, respectively. From next year (2022) to 2032, ERG will supply TIM with fully green energy from its wind farm.
The supply will partly be ‘baseload’ and partly ‘pay as produced’ from wind farms subject to ‘reblading’ interventions in Lacedonia Monteverde and Avigliano from 2023. There is a possibility of increasing the supplied volume by including ERG’s other upgrading projects planned by ERG on its wind fleet. TIM will buy green power from ERG at a set price, optimizing the risk of the investment on its assets.
TIM will consume almost 20% of its energy through renewable sources due to this agreement. According to ERG, this is “the most extensive” long-term renewable power supply deal in Italy.
Luigi Gubitosi, CEO of TIM, said “We are proud of this agreement because it allows us to achieve not only strategic ESG objectives for the company but also for the community.”
