ERG inks "most extensive" Italian renewables PPA with TIM

Italian energy company ERG SpA (BIT:ERG) has sealed a 10-year contract to supply 3.4 TWh of wind power to information and communications technology (ICT) group TIM SpA (BIT:TIT), the two parties announced on Friday.

This corporate power purchase agreement (PPA), which runs from 2022 through 2031, was entered into by the two companies’ respective subsidiaries ERG Power Generation and Telenergia. According to ERG, it is “the most extensive” long-term renewable power supply deal in Italy.

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TIM will buy green power at a set price, with supply being partly baseload and partly “pay as produced”. As a result, TIM will cover about 20% of its energy consumption with renewable sources. The electricity will be sourced directly from ERG wind farms that are subject to reblading interventions in Lacedonia Monteverde, Avellino and Avigliano, Potenza.

“This agreement, in addition to stabilising the sale price of a part of our portfolio of generation from renewable sources, enhances the innovative reblading project [...],” said Paolo Luigi Merli, ERG's CEO, referring to the company's initiative to replace the original blades on select turbines.

It is possible to raise the supplied volume by including other upgrading projects planned by ERG on its wind fleet, the announcement says.