12th Jun 2026 14:11
(Alliance News) - Zenith Energy Ltd on Friday responded positively to the European Commission's approval of a EUR23 billion Italian State aid scheme to support renewable electricity production.
Shares in the Calgary, Canada-based energy producer, explorer and developer rose 8.0% to 5.40 pence on Friday afternoon in London.
The approval, announced on Monday, "marks a major milestone for the Italian renewable energy sector and creates a highly supportive environment for solar project development," Chief Executive Officer Andrea Cattaneo commented.
Zenith said the scheme is expected to support the addition of approximately 37.15 gigawatts of new renewable electricity capacity, equivalent to approximately 48% of Italy's current installed renewable capacity.
It said the support will be provided through two-way, 20-year contracts for difference, which will give producers long-term revenue visibility based on a defined strike price for each kWh of electricity.
Zenith expects its wholly-owned Italian solar subsidiary, WESOLAR Srl, to qualify for the scheme. Accordingly, WESOLAR will participate in the forthcoming bidding with its projects and aim to secure long-term contracted revenues across Zenith's 188.5 megawatt-peak Italian solar development pipeline.
The company said that winning CfDs under the scheme would fundamentally transform the investment profile of WESOLAR's project portfolio, delivering significantly enhanced access to construction financing and a substantially stronger asset disposal market.
Zenith noted that it expects construction of its first operational asset cluster, comprising three solar plants in Puglia with a total capacity of 7 MWp, to begin in July, with commissioning in the fourth quarter.
Cattaneo elaborated: "For Zenith, the introduction of 20-year contracts for difference has the potential to significantly enhance the attractiveness of our Italian solar portfolio by providing long-term revenue visibility and strengthening access to both project financing and institutional capital.
"We believe the scheme further reinforces the value of our development pipeline and positions the company favourably as Italy accelerates its transition towards renewable energy."
By Emma Curzon, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Zenith Energy