Energy that comes from afar, and looks far ahead
Italgen, a Benefit Corporation and green energy company of the Italmobiliare Group, has its 
roots in the early 1900s and produces and transports electricity from 100% renewable sources. The company manages 31 hydroelectric power plants and 9 photovoltaic plants and is accelerating its growth, combining long-standing expertise, advanced technologies, a decarbonization plan validated by the SBTi and an ambitious industrial plan guided by the principles of the UN Global Compact and the commitments of the WEPs.
Following the sale of Italcementi, Italgen remained within the perimeter of Italmobiliare, embarking on a profound phase of transformation: “from 2016 to 2020 we invested in technology and automation"– recounts the CEO, Luca Musicco – "centralizing the operational control of all plants in a new control room operating 24/7 at our headquarters in Villa di Serio.” In this way we created a scalable platform and launched a development articulated along three lines: the revamping of the historic hydroelectric assets, tactical M&A which allowed us to acquire 14 new water intakes in just 4 years, and the diversification of production sources, with photovoltaic plants developed from greenfield projects and on industrial rooftops. The development plan was supported by total investments of 60 million euro, for the most part deriving from self-financing: “our business model generates cash” – Musicco points out – “and this allows us to invest in growth without relying excessively on debt, whose ratio to EBITDA is well below sector averages.”
The result of this development strategy is the almost doubling of installed production capacity, from 57 MW from exclusively hydroelectric sources in 2019 to the current 103 MW, with a generation mix of 70% hydroelectric and 30% photovoltaic.
In parallel, the commercial strategy has also changed and Italgen, which previously sold the energy produced exclusively on the Electricity stock exchange, has begun to sign PPAs (long-term supply contracts) with major industrial customers: “we wanted to be partners of Italian companies in the transition towards a low-carbon economy – Musicco explains – and in these years we have signed almost 40 PPAs with selected industrial customers who share our vision of sustainable development.” This formula in some cases even envisages the construction of generation plants directly connected to customers’ plants, sometimes with zero land consumption on the roofs of buildings, with enormous benefits linked to the elimination of energy transport costs, which can account for up to 50% of the full cost of electricity.
Italgen’s growth is combined with a strengthening of its ESG strategy. Among the many initiatives launched, it is important to underline that the company has joined the UN Global Compact, signed the Women’s Empowerment Principles, set emission reduction targets for 2030 and net zero for 2040, and adopted the legal status of Benefit Corporation, completely decarbonizing its corporate purpose.
The results achieved are not the finish line but milestones along an evolutionary path with very ambitious objectives: “the plan envisages reaching 160 MW of installed capacity within 3 years, naturally always 100% renewable – Musicco announces –. We want to grow, but in a selective way. We aim to further diversify both the generation sources and the geography of the plants, with care, a sense of responsibility and a strong focus on sustainability. What does not change is our purpose: to enable the ecological transition of our customers and of the country system.”