Audax Renovables, agreement for the purchase of solar energy in Italy

January 16, 2019 - Audax Renovables, a company born from recent merger between Audax Energía and Audax Renovables, has formalized a memorandum of understanding (PPA*) with BAS FV Italia which provides for the long-term purchase and sale of the 100% of the electricity production of two solar photovoltaic plants of 10 MW each.

BAS FV Italia SL, a company managed by the NGC Partners investment fund specialized in the development and implementation of activities related to renewable energy in Europe and America, is completing two Solar photovoltaic in Basilicata. The market debut is expected to take place towards the end of 2019.

With the signing of the agreement, the parties have agreed both the purchase and sale price of the energy and the duration of the PPA and the guarantees between the parties; other contractual terms related to financial closing conditions and obtaining the necessary administrative and environmental permits remain pending.

Furthermore, under the agreement, Audax Renovables will act as representative of the two photovoltaic systems, with regards to the management of programming and the sale of energy in Italy. This will allow it not only to consolidate but also to strengthen its position in the Italian market, to surpass the already excellent result of 2018, with +53% of energy sold in Italy in 2018.

“The PPA just signed marks both an arrival and a starting point in the history of Audax Energia in our country” he states Francesco Calabretta, Country Manager for Italy. “In fact, the agreement is both the culmination of a continuous and sustained growth recorded in recent years, as well as a founding element from which to start for the Group's future strategies in Italy. The objective always remains the same: to offer an increasingly better service to users, with Audax's usual dual attention towards solutions that are sustainable for the environment and convenient for customers".

*PPAs or Power Purchase Agreements are long-term energy purchase agreements that are currently becoming widespread especially among renewable energy producers and large energy selling companies (offtakers). On the one hand, they are able to bring a certain stability to the input flows for producers, avoiding the problem of market volatility and facilitating the financing or "bankability" of projects. On the other hand, large sales companies purchase energy with better economic conditions than they would have had by purchasing it on the wholesale markets, thus obtaining competitive advantages - in the short and medium term - in energy supply compared to their competitors.