Sasol Italy, part of the South African multinational group, has finalized an agreement with GreenGo for the supply of green electricity to its industrial facilities located in Augusta, Sarroch, and Terranova, Italy. The agreement marks a significant step in Sasol Italy's commitment to sustainability and energy transition initiatives.
Under the terms of the contract, which operates on a pay-as-produced basis, GreenGo will supply electricity sourced from five photovoltaic plants spread across three regions in Italy. These plants, with a total capacity of 24.5MW, are currently under construction and expected to commence commercial operations in the first half of 2025. Once operational, they will generate approximately 45 GWh annually, covering over 20% of Sasol Italy's total energy consumption.
Carlos R Zanol, head of PPA and regulation at GreenGo, emphasized the robustness of the pricing system designed for the contract, stating, “The dynamic value of the pricing system allows us to offer the PPA an extreme commercial robustness to the contract by targeting the economic sustainability of our first investment as an IPP.”
The agreement, spanning ten years, includes provisions for a zonal price remuneration with a dynamic discount, ensuring Sasol Italy receives a competitive rate for the electricity produced. Additionally, a floor price mechanism provides stability, while a cap price protects Sasol Italy from potential price fluctuations.
Sebastiano Durante, manager of strategic sourcing energy & emissions at Sasol Italy, highlighted the strategic importance of the partnership, stating, “This partnership is part of a broader strategy in the name of sustainability of Sasol Italy through the increasing use of renewable energy quotas for its Italian industrial sites.”
Durante further underscored Sasol Italy's commitment to social responsibility and emissions reduction goals, affirming that the agreement demonstrates a tangible step towards implementing the energy transition.
