Pirelli sets up joint venture to follow the sun

Joint venture formed

Pirelli Ambiente, the renewable energy subsidiary of the Pirelli Group, has created a joint venture, Solar Utility SpA, in partnership with the private equity fund Global Cleantech Capital, to generate renewable energy using photovoltaics.

Solar Utility will be held 50:50 by the two owners, which plan to invest €24 million over the next five years on roof-based solar energy systems. The company will install and own solar systems on the roofs of commercial and industrial property owners, and sell them back green electricity in return.

Solar Utility will also sell complete solar energy projects, allowing investors to take advantage of the Italian government’s 20 year feed-in tariff, which guarantees prices for suppliers of green energy to the national grid.

Italy has the highest sunshine levels in the Mediterranean. Backed by the government incentive scheme, the country is projected to be one of the leading producers of solar energy in Europe. Eventually it is expected that Italy could generate 30 per cent more solar energy than the current leader, Germany.

Italy is forecast to become the first European country to reach “grid parity”, where the cost of solar power will equal the price of grid electricity. The Italian photovoltaic industry is growing at 30 per cent per year.