ERG to supply more renewable power to Telecom Italia

Italian energy company ERG SpA (BIT:ERG) has signed a new power purchase agreement (PPA) with TIM (Telecom Italia) (BIT:TIT) to supply the information and communications technology (ICT) group with an additional 200 GWh of renewable electricity a year.

The new nine-year contract will integrate the PPA signed in May 2021 for the supply of 340 GWh a year for 10 years, the parties said today. The additional “baseload” volume of 200 GWh will come from renewable plants in ERG’s portfolio.

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TIM will now be sourcing about 34% of its energy purchases from renewable sources through PPAs, progressing towards its goal of 100% green energy use by 2025.

“The new agreement signed with ERG will help us to reach the ESG targets we have set ourselves, while at the same time stabilising costs in a context of continued macroeconomic uncertainty,” commented TIM’s chief executive Pietro Labriola.

“Supplying additional green energy to TIM, at a fixed price, will contribute to optimising the Group’s risk profile in the management of its renewable asset portfolio,” said ERG’s chief executive Paolo Merli.

The agreement supports ERG’s target to secure 85-90% of its EBITDA.