Zelestra has completed financial close on its first renewable energy assets in Italy, securing approximately €13 million in green financing to support two utility-scale solar projects in southern Italy. The transaction marks a key step in Zelestra’s European expansion strategy and signals growing lender confidence in Italy’s evolving solar market.

The financing supports a 6.5 MWdc solar plant in Ginosa, Puglia, and a 9.5 MWdc facility in Bellomo, Sicily. While modest in scale, the projects arrive amid persistent permitting complexity and revenue uncertainty in the Italian renewables landscape, making successful bank-backed execution a meaningful milestone.

Financing Structure and Bankability

The senior debt package was arranged with BPER Banca, which also acted as agent and hedging bank. A defining feature of the transaction is the inclusion of long-term power purchase agreements with BKW, providing predictable revenue streams and reducing merchant exposure.

In Italy’s current power market, where price volatility and grid congestion remain concerns, long-term PPAs are increasingly essential to converting solar projects into infrastructure-grade assets. Zelestra said the offtake agreements materially improved debt terms and supported lender confidence, even without public disclosure of pricing or tenor.

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Climate Impact and Energy Contribution

Once operational, the two solar plants are expected to generate enough electricity to supply approximately 10,000 households annually and avoid around 8,500 tonnes of carbon dioxide emissions each year. These metrics support alignment with green loan frameworks and help lenders meet sustainability-linked reporting requirements, while contributing incremental capacity toward Italy’s renewable energy targets.

For policymakers, the projects also add distributed generation in regions with strong solar resources, supporting efforts to reduce reliance on imported fossil fuels and improve energy security.

Italy’s Growing Role in Zelestra’s Strategy

Italy has emerged as one of Zelestra’s fastest-growing European markets, with more than 1.4 GW of solar and storage capacity currently under development. The company plans to double its Italian pipeline by 2026, with a clear focus on pairing solar generation with battery energy storage systems to address grid constraints and price cannibalisation, particularly in southern regions and Sicily.

Zelestra has also secured contracts for nine projects under Italy’s FER X auction scheme, unlocking up to 168 MW of regulated solar capacity. While auction volumes remain smaller than in some northern European markets, the framework is viewed by investors as a stabilising mechanism for long-term capital deployment.

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Signals for Investors and the Market

The financing highlights several structural shifts in Europe’s clean energy market. Bankable PPAs are now central to project viability, storage is becoming a prerequisite rather than an add-on for solar-heavy grids, and Italy is re-emerging as a credible destination for institutional renewable capital after years of regulatory uncertainty.

For Zelestra, the deal establishes an operational foothold in Italy and sets a template for scaling future projects through a combination of contracted revenues, disciplined development, and green-aligned financing.

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