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ERG and TIM sign power purchase agreement in Italy


Italian renewable energy firm ERG has signed a ten-year corporate power purchase agreement (PPA) with ICT company TIM for the supply of 3.4TWh of green energy.

The PPA was signed by ERG Power Generation and Telenergia, subsidiaries of ERG and TIM respectively.

From next year, ERG will deliver fully green energy from its wind farm portfolio to TIM until 2031.

ERG said that a certain portion of renewable energy will be delivered in ‘baseload’ mode and another part in ‘pay as produced’ mode from the wind farms.

This would be 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 planned enhancement projects on its wind fleet.

The renewable energy will be sold by ERG to TIM at a set price, optimising the risk of the investment on its assets.

ERG CEO Paolo Luigi Merli said: “We are very satisfied with the agreement, in fact a partnership, consistent with one of the main guidelines of the Business Plan, which envisages the evolution towards an infrastructural model to reduce the volatility of revenues.

“This agreement, as well as stabilising the sales prices of a part of our generation portfolio from renewable sources, enhances the innovative reblading project, at the forefront both from a technological point of view and, now, from the point of view of the methods of energy sales.”

The agreement will allow TIM to consume almost 20% of its energy through renewable sources while supporting the company’s strategy to use renewable energy.

It will also support the European Union’s objectives of reducing carbon emissions.

TIM CEO Luigi Gubitosi 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.

“On the one hand, we are diversifying the sources of energy supply, stabilising costs and reaffirming the company’s strong commitment to the use of renewable energy in the medium to long term.

“On the other hand, we are confirming TIM’s commitment to supporting the national plan for the energy transition.

“With this operation, we will contribute to the reduction of CO₂ emissions and generate benefits for the environment.”

Last March, ERG awarded a wind turbine supply contract to Danish wind turbine manufacturer Vestas.

Under the terms of the contract, Vestas would supply 13 of its V112-3.45MW turbines in 3.6MW operating mode for the 47MW Evishagaran wind project in Northern Ireland.


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