Vexuvo, an Italian independent power producer (IPP), strengthens its presence in the country with its 3 GW renewable portfolio, which includes 1.5 GW of photovoltaic and agrivoltaic plants and 1.5 GW of storage systems in various stages of development.

Filippo Fontana, Coo of vexuvo, states that their projects are distributed across 14 regions of Italy. “We focus our activities on photovoltaics. We have developed utility-scale installations, and from the start, we have bet on innovative solutions like agrivoltaics, seeing the trend emerging around the world,” he says in an interview with Strategic Energy Europe.

“Our knowledge of the sector and around 20 years of experience allow us to cover the entire value chain, from design to plant operation,” he adds. This integrated model not only mitigates risks related to volatile costs but also provides long-term stability in a market known for its complexity.

Agrivoltaics and Storage: Key Technologies for the Future

A fundamental pillar of vexuvo’s strategy is the development, construction and operation of agrivoltaic projects, a solution that combines solar energy production with agricultural activities. “Agrivoltaics optimizes land use, creating a sustainable model that benefits both local communities and agricultural producers,” says the COO This approach enables a harmonious coexistence between agriculture and energy generation, maximizing profitability and sustainability.

Additionally, energy storage plays a crucial role in the company’s plans. With 1 GW of standalone projects and 500 MW of hybrid systems linked to photovoltaic installations, vexuvo is ready to participate in the first MACSE mechanism auctions with 500 MW scheduled for 2025. “Storage not only stabilizes the grid but also opens up new business opportunities in the Italian market,” explains Fontana.

2024 Review: A Year of Consolidation

The year 2024 marked a milestone in vexuvo’s journey. According to Fontana, “2024 was the year of consolidation on multiple levels,” both in expanding the team and strengthening the brand in the national market. The inclusion of professionals from sectors like oil & gas underscores the company’s commitment to the energy transition, while its growing presence in associations and discussion forums reinforces its leadership in the sector.

Among the notable achievements, Fontana highlights the issuance of a two-year bond fully subscribed by Banca Patrimonio Sella, signaling confidence in the company’s projects. “This support from the financial sector validates the quality of our work and drives us to continue moving forward,” he emphasizes.

Looking Ahead: 2025 Objectives

Looking towards 2025, vexuvo is preparing to begin construction of its first plants in the second or third quarter of the year, with nearly 50% of the total investment allocated to the construction of these plants.

“In the medium term, between 2026 and 2027, we will be able to assess the results of the first steps, development, implementation, and commissioning of the projects,” says Fontana, adding that by that year, the company expects to achieve a positive balance, estimating annual revenues of 20 million euros.

The goal is to have 60 operational facilities by 2028, with a distribution of 40% in central and southern Italy, 35% in the north, and 25% on the Italian islands.

Although the company currently operates exclusively in Italy, the executive does not rule out future expansion into other European markets and the integration of new technologies. “We are keeping an eye on innovations such as hydrogen and biomethane, always seeking to align with our industrial plan and market needs,” he points out.

Regulatory Challenges in Italy

The renewable sector faces regulatory and social challenges. bureaucracy remains an obstacle. Additionally, there is a misconception about land use, especially in photovoltaic projects, which some perceive as a threat to agriculture.

“Agrivoltaics demonstrates that it is possible to integrate both activities into a win-win model that enhances agricultural profitability,” emphasizes the COO, adding that the Italian market requires more communication to break down these social and political barriers.

“These delays and uncertainties arising from these two challenges have created some uncertainty, particularly regarding the utility of costs, both in terms of raw materials and components, because the difficulty in organizing and planning the sector, the production and installation of renewable plants over the long term exposes producers to these volatilities,” he analyzes.

He also points out that investors and producers need to time their investments carefully since energy costs remain very volatile.

“The industrial sector in Italy is currently facing the highest energy costs in Europe. We are addressing this with more resilient sourcing strategies, trying to invest in innovative technologies that are somewhat less volatile and can reduce costs in the long term. And our integration across the entire value chain allows us to have a bit more of a cushion against these volatilities,” he concludes.