Sosteneo, a newly created clean-energy projects investment company majority owned by Generali Investments, is investing €1.1bn to co-own a company created to develop and operate a portfolio of projects mainly composed of battery energy storage systems (BESS) in Italy alongside the projects’ owner Enel.
Sosteneo’s Fund 1 is investing the capital to gain a 49% interest in Enel Libra Flexsys in a deal that gives Enel Libra Flexsys an enterprise value of around €2.5bn once the company completes its investment cycle.
Enel Italia created Enel Libra Flexsys to develop and operate a 1.7GW portfolio of 23 BESS as well as three renovation projects for open-cycle gas turbine (OCGT) plants with a total capacity of 900MW. Revenue for the project is fully contracted for 15 years through capacity agreements with Enel as well as capacity payments from Enel that are backed by transmission system operator Terna.
Umberto Tamburrino, managing partner, CEO and CIO for Europe at Sosteneo, said: “This partnership with Enel represents a major investment in critical new infrastructure for the energy transition in Italy and is a landmark transaction on behalf of Sosteneo’s clients. The BESS and OCGT projects will provide flexibility and strength to the grid that is vital for the integration of more renewable generation into Italy’s energy system.
“We are proud to be selected as the partner-of-choice by Enel for a transaction of national strategic importance in recognition of our strong track record and depth of expertise, particularly in batteries. The total capacity of Sosteneo’s BESS projects under management is now set to exceed 5GWh globally.”
Stefano De Angelis, CFO of energy firm Enel, said: “This partnership with a leading player such as Sosteneo enables us to further accelerate the development of storage solutions supporting Italy’s energy system, optimising capital allocation with the aim to create value for all stakeholders.”
De Angelis said the transaction is in line with Enel’s 2024-26 strategic plan of retaining “control of strategic assets while maximising productivity and returns on invested capital”.
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