Macquarie Capital has invested in Italian renewable energy developer Chiron Energy to establish a joint venture targeting at least 500MW of battery energy storage systems (BESS).
The new independent power producer, Chiron Energy Power Generation, will be owned 51% by Chiron and 49% by Macquarie Capital. The financial value of Macquarie’s investment was not disclosed.
Alongside the battery projects, the venture plans to develop and build at least 1GW of solar photovoltaic capacity in Italy.
Chiron said the platform would have access to its existing development portfolio, including approximately 700MW of BESS projects. Its solar pipeline comprises more than 300MW of ready-to-build projects and a further 250MW at an advanced stage of development.
Neither company disclosed the proposed battery chemistry, energy capacity in megawatt-hours, storage duration, technology supplier, project locations or construction timetable. It was also not stated whether the storage facilities would be co-located with the solar farms or developed as stand-alone projects.
Neither Chiron nor Macquarie has confirmed the battery chemistry of the proposed systems.
The joint venture will initially include 115MW of solar farms operating in northern Italy. These plants were developed and constructed by Chiron from 2020 onwards.
Chiron said the completed 1GW solar portfolio could generate approximately 1.4TWh of renewable electricity annually, which it compared with the consumption of more than 500,000 Italian households. The company estimated it could avoid 730,000 tonnes of carbon dioxide emissions and displace approximately 240 million standard cubic metres of natural gas each year.
The figures appear to relate principally to electricity generated by the solar portfolio rather than energy delivered by the BESS assets.
The venture will also have access to early-stage development opportunities and approximately 12 million square metres of land in northern Italy that Chiron has acquired or placed under option.
Paolo Pesaresi, founder and executive chairman of Chiron Energy, said: “With the creation of this important joint venture, we are taking the most significant strategic step in Chiron Energy’s history since its foundation. This partnership enables us to considerably accelerate our growth trajectory, while maintaining strong Italian-led industrial leadership and further strengthening our role in the country’s energy transition, with the aim of increasing its energy sovereignty and commitment to environmental sustainability.”
The transaction forms part of Chiron’s wider industrial plan, which provides for investment of approximately €2.5 billion. The company aims to own and operate more than 2GW of solar capacity and 1GW of BESS by 2035.
Claudio Gigli will serve as chief executive of Chiron Energy Power Generation, with Pesaresi as executive chairman.
Gigli said: “For us, Macquarie Capital’s investment represents much more than a financial commitment: it is the choice of a global partner that recognises the quality of our platform, our team and our pipeline. Together, we can create a platform of a new scale, capable of developing innovative and sustainable energy infrastructure deeply rooted in Italy.”
Matthew Edgar, global head of energy transition at Macquarie Capital, said the company had been an active investor in Italy for several years.
He added: “We are pleased to partner with Chiron Energy, one of Italy’s leading independent renewable energy developers, with a highly experienced management team and a distinctive industrial plan, to help grow and accelerate its ambitions in support of Italy’s decarbonisation journey.”
Macquarie Capital was advised by Rothschild & Co, Vector Renewables and Ashurst Perkins Coie. Chiron’s advisers included UniCredit, KPMG, EOS Consulting and PedersoliGattai.
