Renewables, Eos launches Lexham Power: has projects in Italy for 1.5 GW

Eos Investment Management Group (Eos Im), an asset manager specialising in investments dedicated to transition, announces the launch of Lexham Power, a new renewable energy operator - technically an independent power producer (IPP) - based in Rome and with a portfolio now entirely concentrated in Italy. The pipeline in Italy counts more than 1.5 GW of solar, agri-voltaic (about half), and battery projects, with 500 MW already in the ready-to-build phase, a target to be operational in the next three years, and a value of more than EUR 500 million.

Lexham Power is an initiative promoted and wholly owned by Eos ReNew Infrastructure Fund II. "This is the fund dedicated to energy infrastructures for which Eos Im has raised around 300 million, mainly from institutional investors, and with which it has invested in solar and battery projects for 1.8 GW, of which 350 MW of photovoltaics already built and connected to the grid," says Natalino Mongillo, managing partner and founder with his father Ciro of Eos Im in 2014 in London. "Thanks to this path made over the last few years, in which we have worked in all phases of the project, from the development to the operation of the plants," Mongillo continues, "we have seen which are the delicate points and which are the necessary skills. We have therefore integrated them within Lexham Power, with the addition of new managers. We brought on board experts in the construction of large plants and specialists in secondary permitting to get the sites started. Finally, we chose a director to coordinate all this and make the company autonomous from an industrial point of view: the leadership of Lexham Power and the role of ceo has been entrusted to Filippo Stefanelli, former ceo of Acea Produzione'.

The focus of the new energy operator, recalls Mongillo, is: "New plants, utility scale: photovoltaic, next-generation agri-voltaic (for which we have just acquired a company with a focus on agriculture to complement its expertise), and finally battery storage systems. The fact that we have created an in-house vertical entity allows us to scale up, to follow several projects at the same time and to create, over time, an industrial autonomy around them". Lexham Power develops, builds and manages projects internally according to a model that covers all phases: permitting, engineering, procurement, construction and energy valorisation through PPAs (power purchase agreements), tenders such as Fer X, and energy and capacity markets.

On the subject of Fer X, the results of which were communicated by the Gse at the beginning of December, Mongillo points out that of Lexham Power's solar portfolio, more than 400 MW have been awarded contracts for Fer X difference, while the remainder will be working on long-term PPAs. And from a storage systems perspective, the company will be looking closely at the upcoming Capacity Market auctions to be organised by Terna. "Fer X is a unique tool and is helping investments a lot, making Italy an attractive and serious hub. The country has also become an important market for accumulation, thanks to Terna's work in incentivising capacity. Of course, the usual authorisation issue remains,' Mongillo notes.

Lexham Power's objective is to develop projects throughout Italy, and it is no coincidence that it is based in Rome, a geographically strategic point and a basin of expertise in renewables. At the moment, the focus is in the Centre South, particularly in Lazio, Sardinia, Sicily, and Apulia. The first plant, a 60 MW photovoltaic plant, is already under construction and will be connected to the grid next year, while the plan, as mentioned, is to bring all 500 MW of projects ready for construction within the next three years.