Emeren Group Signs an Agreement to Develop Battery Energy Storage Systems in Italy
STAMFORD, Conn., June 27, 2023 /PRNewswire/ -- Emeren Group Ltd ("Emeren" or the "Company") (www.emeren.com) (NYSE: SOL), a leading global solar project developer, owner, and operator, today announced its collaboration with Matrix Renewables ("Matrix"), the TPG Rise-backed global renewable energy platform. The partnership aims to execute a proprietary Development Service Agreement (DSA) for the development of up to 1.5 GW of a portfolio of Battery Energy Storage Systems (BESS) in Italy. The first portfolio of projects delivered and accepted by Matrix includes over 260 MW of standalone BESS projects.
Under this DSA, Gravel A S.r.l., a joint venture consisting of Emeren Limited, a subsidiary of Emeren Group Ltd, Enerpoint S.r.l., and Kaizen Invest Holding S.r.l., will join forces with Matrix Renewables to leverage their collective expertise in the renewable energy sector. The DSA structure consists of a series of non-refundable payments that Matrix will grant to Emeren for every onboarded project in the framework of the agreement as well as for the achievement of each development target.
This new collaboration is of high strategic relevance as the Italian electricity transmission system operator, Terna S.p.A., is expected to open a new capacity market auction in late 2023 to boost the solar storage output in the country. This incentive scheme aims at structuring a more efficient deployment of the increasing renewable energy production and supporting investments in the storage technology.
Yumin Liu, CEO of Emeren Group, commented, "We are pleased to announce significant progress in our storage pipeline growth, reaffirming our commitment to solar plus storage strategies. This underscores our focus on capitalizing on storage sector growth globally, while prioritizing a reliable electricity infrastructure. We believe storage technologies are vital for the future of renewable energy and strive to be leaders in this transformative market. The DSA structure based transaction confirms our sizable standalone BESS pipeline in Italy, showcasing our team's confidence in project development and early-stage monetization. We are confident in our ability to deliver sustainable solutions that meet evolving energy needs and contribute to a cleaner, more resilient energy landscape."
Chris Matthews, MD for Europe at Matrix Renewables, commented, "This collaboration is a significant milestone in our growing relationship with Emeren Group, and we cherish the opportunity to work together on the development of these BESS projects in Italy. We recognize that Emeren's expertise and dedication to sustainable energy solutions, reflect our own, and we see in that the seeds of a great partnership. We are confident that our combined efforts will drive meaningful advancements in the renewable energy sector in Italy with both parties taking a leading position in the Italian BESS market."
About Emeren Group Ltd
Emeren Group Ltd (NYSE: SOL) is a leading global solar project developer, owner, and operator with a pipeline of projects and IPP assets totaling over 3 GW, as well as a storage pipeline of over 6 GWh across Europe, North America, and Asia. The Company focuses on solar power project development, construction management and project financing services with local professional teams across multiple countries. For more information, go to www.emeren.com.
About Matrix Renewables
Matrix Renewables is a renewable energy platform created and backed by global alternative asset manager TPG and its $16 billion impact-investing platform TPG Rise. Matrix Renewables' current portfolio is comprised of 11.7 GW in renewable energy and storage projects in Europe, North America, and Latin America. For more information, visit www.matrixrenewables.com or send an email to info@matrixrenewables.com
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