Investing in renewable energy through responsible investments in Italy

We are jointly exploring the European, and more specifically the Italian, regulatory framework concerning responsible investment and the development of RES (Renewable Energy Sources). To do this, we are studying the mechanisms of crowdfunding as applied to Italian energy projects, its advantages for French investors and project developers, as well as the challenges to be met to make Enerfip Italia the key player in responsible investment in its country.In short, we are deciphering the dynamics of the Italian market and the growth prospects for crowdfunding!

RES in Europe

Sustainable Development

Did you know that the Paris Agreement aims to limit global warming to well below $2^\circ\text{C}$ compared to pre-industrial levels? Each signatory committed to reducing their greenhouse gas emissions in order to keep global warming between $2^\circ\text{C}$ and $1.5^\circ\text{C}$ by 2100. To achieve this result, policies and the economy must accelerate the transition toward more sustainable models. We must learn to reconcile the preservation of our planet with sustainable and inclusive economic development.

With this in mind, governments and businesses are intensifying their efforts to decarbonize the economy. On the one hand, the transition to renewable energy is essential to gradually replace fossil fuels. This is the phenomenon of adaptation. On the other hand, technological development plays a crucial role in improving energy efficiency. This phase is called mitigation.

The financial sector is no exception! It is more necessary than ever to rethink investment solutions to encourage investors to orient their investments toward more sustainable and environmentally friendly projects.

Enerfip!

European Regulatory Framework

Before going further, it is essential to understand the foundations and objectives of the EU (European Union) environmental policy. Since the Single European Act of 1986, which first provided for a specific EU competence in environmental matters, writings in favor of sustainable development have multiplied, making it a central pillar of European legislation. The Treaties of Maastricht (1992), Amsterdam (1997), and Lisbon (2007) mark new key stages in the fight against climate change and strengthen the place of the environment in European policies. The Convention on Biological Diversity (1992) and the Paris Agreement (2016) are proof that the EU aligns its policies with its commitments made on the international stage.

Today, the 8th Environmental Action Programme guides the EU's environmental action for the period 2021-2030. Its 6 priorities can be summarized as:

• reducing greenhouse gas emissions;
• adapting to climate change;
• developing a sustainable circular economy;
• seeking zero pollution;
• protecting biodiversity;
• reducing environmental and climate pressures related to production and consumption.

To achieve carbon neutrality by 2050, the EU is aligning itself with the 17 SDGs. Considered a roadmap for the implementation of the 2030 Agenda, they cover a vast range of development issues with the aim of finding a balance between economic progress, environmental protection, and social well-being. But that's not all! In parallel, the EU has established a solid, evolving regulatory framework (European Taxonomy, SFDR, CSRD, etc.) to promote green infrastructure and encourage the integration of ESG criteria (Environment, Social, and Governance). The Draghi Report, presented in September 2024, also refers to the need for an ambitious investment plan to support the green and digital transitions in Europe.

Green Infrastructure in Europe

Did you know that the European Union had reached its first target of 20% renewable energy in its final consumption in 2020? Each Member State committed to achieving its own target for renewable energy in its country's total consumption. Sweden aimed for 49%, while Malta aimed for 10% and France for 23%, for example. With every participant having met or exceeded their commitments – except France, with a delay of 3.9 percentage points compared to its target – the EU exceeded its overall objective with a share of 22.1% renewable energy in 2020.

For 2030, the EU has set a target of 42.5% renewable energy in its energy mix. To achieve this, it has dedicated 30% of the 2021-2027 budget and 37% of the European recovery plan to the fight against climate change. Furthermore, a series of measures in line with the Green Deal reinforce the energy transition at the Member State level. To name a few:

• LIFE is a €5.4 billion program dedicated to climate change mitigation and adaptation;
• the Modernisation Fund of €640 million helps 10 Eastern European countries modernize their energy systems;
• the Innovation Fund is a €38 billion financing program aimed at promoting innovative low-carbon technologies;
• the Just Transition Fund, worth €17.5 billion, was designed to help the territories and workers most dependent on fossil fuels and polluting industries...

Once its 2030 ambition is successfully achieved, the European Union will put new means in place to achieve climate neutrality in 2050 (as many emissions absorbed as emitted). To be continued...

The Italian RES Market

Current Status

In 2023, Italy produced $256\text{ TWh}$ of electricity and consumed $287\text{ TWh}$. This gap between production and consumption highlights its dependence on external supplies, necessitating the import of $8\%$ of its electricity.Despite increasing investments in renewable energy, fossil fuels still dominate its energy mix at $61\%$ (mainly via natural gas). This heavy reliance on fossil fuels gives Italy one of the highest carbon intensities in Western Europe, higher than that of France and the Nordic countries.Currently, renewable energy contributes $39\%$ to emissions reduction, but this share is lower than in other Western European countries. This is why Italy wishes to accelerate the development of this sector, which would grant it energy sovereignty and an improvement in carbon intensity.Evidently, the Italian energy transition is accompanied by a few challenges, such as the fact that the country displays one of the highest electricity prices in the EU. Why? Notably, due to its relative isolation from the continental energy grid and its dependence on imported gas. Furthermore, investments in renewable infrastructure and grid modernization, although essential, also contribute to the rise in prices, which are expected to stabilize over time.

Photovoltaic Energy

Historically, solar energy is the main technology used in the renewable energy sector in Italy. Today, it produces $35\text{ GW}$ and targets $79\text{ GW}$ by 2030. With this goal in mind, the government, which wants to accelerate the deployment of photovoltaics, has implemented reforms aimed at simplifying administrative procedures and reducing bureaucratic obstacles.Aid programs such as FER X and Bando Agrivoltaico, meanwhile, continue to support the development of solar energy, with a particular emphasis on agri-voltaics, which combines agricultural production and photovoltaic installations.

Wind Energy

Just as with photovoltaic energy, Italy is also accelerating the development of wind power by simplifying authorization procedures for onshore and offshore projects. It aims to reach $28.1\text{ GW}$ by 2030, compared to $13.5\text{ GW}$ today.To support this expansion, significant upgrades to the electricity grid are underway, particularly in the southern regions and coastal areas, where the wind potential is highest. Onshore wind projects, for their part, are concentrated in the south of the country and mountainous regions.

Battery Storage – BESS

Due to the ambitious plan for the integration of Renewable Energy Sources (RES) into the grid, BESS is an essential technology for managing the intermittency of renewable energy, ensuring grid stability, and reducing dependence on energy imports.2024 marks a significant step forward for Italy, which ranks second with $11\%$ of the total residential battery storage capacity deployed in Europe. It now has 518,950 storage systems linked to renewable energy projects, compared to just 653 in 2015. Among the emblematic projects this year, a $200\text{ MW}$ ($805\text{ MWh}$) standalone BESS was commissioned in Udine.To support these investments, Italy has also put several incentive mechanisms in place.The MACSE (Meccanismo di Approvigionamento di Capacità di Stoccaggio Elettrico) program allows for the allocation of 15-year contracts via competitive auctions, promising predictable revenue streams to secure investments in BESS projects.The Capacity Market guarantees grid reliability by remunerating energy providers, including BESS operators, for their availability during peak demand periods. It also provides annual financial incentives for new installations and existing infrastructure.

Italy's Climate Objectives and Commitments

Like the other countries of the European Union, Italy has committed to reducing its greenhouse gas emissions by at least $55\%$ before 2030 and achieving carbon neutrality by 2050. To achieve this, Italian Prime Minister, Giorgia Meloni, is deploying an energy diversification strategy, in collaboration with African countries. The purpose of this partnership is to strengthen their cooperation around energy security, youth training, and the deployment of renewable energies.In parallel, she is betting on doubling the share of renewable sources within the country itself! The key action to achieve the objectives of the PNIEC (Piano Nazionale Integrato per l'Energia ed il Clima) is to install $131\text{ GW}$ of renewable capacity by 2030, particularly through photovoltaic and wind installations.

Why is Enerfip interested in Italy?

• As you have seen, Italy is experiencing strong growth in renewable energy. To meet national and European objectives, it plans to invest massively in green infrastructure.Naturally, the Italian regulatory framework is favorable. Even if some administrative procedures can take time, Italy has made its market attractive both for sustainable investment platforms and for project developers.Furthermore, crowdfunding is a highly favored alternative by developers and investors, who see it as a way to propose innovative initiatives dedicated to accelerating the energy transition.Perfectly aligned with our ambitions and values, Italy was an obvious choice for us, who want to make green investment accessible to everyone. Starting from just €10, you can invest the amount of your choice in projects for renewable energy production, energy efficiency, or sustainable mobility in France or internationally.

Ambitions and Development Objectives

Enerfip Italia, like the other branches of the Enerfip Group, aims to become the leader in responsible investment dedicated to renewable energy in its country. To achieve this, it is projecting ambitious objectives for the short, medium, and long term.

From the very first year, the objective is clear: to raise €10 million to finance projects dedicated to green infrastructure.Within two years, Enerfip Italia wishes to focus on the Italian market by deepening its knowledge of the local market and identifying innovative investment opportunities.Within three years, Enerfip Italia aims for a significant scaling up and plans to offer one crowdfunding project every month, thus offering you investment regularity and a great diversification offer.

How to contact us?

Much more than a crowdfunding platform, Enerfip offers competitive, transparent and responsible savings dedicated to supporting the energy transition. By making the impact of your investments positive and meaningful, you contribute to decarbonising savings products.

By investing with us, you support the energy transition directly through renewable energy production projects, energy-efficiency initiatives or sustainable mobility solutions. High-performing, diversified and fostering a direct link between projects and project owners, our offerings actively promote a low-carbon society model while delivering strong financial returns.

If you’re interested in our crowdfunding platform dedicated to the energy transition, don’t wait—book an appointment with our Investor Relations team today!