(Finance) – The energy company ERGactive in renewable sources with subsidiary ERG Power Generation, signed a 9-year agreement with TIMthrough the subsidiary Telenergia, for the supply of around 200 GWh/year (Gigawatt hour) of green energy for the period 2023-2031.
The contract provides the integration of the previous PPA (Power Purchase Agreement), signed on 14 May 2021, relating to supply of 340GWh/year for 10 yearswith an additional volume of 200 GWh per year “baseload” of 100% green energy produced by renewable plants in the ERG portfolio, and the updating of the related commercial terms.
Through this agreement, TIM will cover around 34% of purchases of energy from renewable sources through PPA, reinforcing the commitment to pursue thegoal of using 100% green energy by 2025 and reduction of CO2 emissions on which the Group’s strategy is based.
For ERG this agreement represents an important result, consistent with the strategic objective of securing 85-90% of its EBITDAas envisaged in the recently updated Group Business Plan 2022-2026.
Paul MerliChief Executive Officer of ERG, said “pleased to have strengthened the partnership with a leading operator in the sector in a particularly volatile market context in which PPAs represent a strategic tool for stabilizing revenues. The supply of additional green energy to TIM, at a defined price, contributes to optimize the risk profile of the Group in the management of its portfolio of renewable assets”.
“We are the second Italian consumer of energy and for this reason it is essential to make choices that aim to solve environmental problems”, he said Peter LabriolaChief Executive Officer of TIM, adding “the new agreement signed with ERG will help us achieve the ESG targets we have set ourselves, while stabilizing costs at a time when the macroeconomic scenario remains characterized by uncertainties”.