Focus on The Italian Market: Wpd Concludes Long-Term PPA With Lyondell Basell For Wind Farm Project in Italy

Bremen, Germany - In addition to solar energy, the wind energy sector in Italy is also set to expand significantly by 20230. The German project developer Wpd is also involved in this. Wpd has now concluded a long-term power purchase agreement for the Licata onshore wind farm. The project marks the start of a huge development pipeline for Wpd in Italy.

The Bremen-based developer and operator of wind and solar parks Wpd has agreed a 10-year power purchase agreement (PPA) with the Netherlands-based company Lyondell Basell (LYB) for the Italian onshore wind project Licata. The conclusion of the green power PPA is in line with the sustainability ambitions of LYB, which is one of the international players in the chemical industry.

Licarta wind farm first Wpd project in Italy from a 1,300 MW pipeline

The Licata wind farm, consisting of seven Vestas V150 turbines with a total capacity of 30 MW, is being built on the southern coast of Sicily. Once completed, it is expected to produce around 79 million kWh (79,000 MWh) of electricity per year. This wind farm is the first project in a comprehensive pipeline of 1,300 MW that Wpd is planning and implementing in Italy.

“Partnering with wpd on the Licata wind project is a clear step forward in LyondellBasell’s journey to provide innovative, lower-carbon solutions. Securing reliable, onshore wind power for our Ferrara operations helps us accelerate our emissions reduction efforts while supporting the long-term growth of sustainable industrial practices in Italy,” commented Chris Cain, Senior Vice President, Net Zero Transition Strategy at Lyondell Basell on the PPA agreement. “We are very pleased to have found a reliable partner in LyondellBasell and to be able to support them in their transition to a more sustainable future”, adds Andreas Chollet, Head of Project Development Italy at Wpd.

According to Wpd, it currently has a huge international project pipeline of 19,320 MW for onshore wind and 5,015 MW for photovoltaics. According to the company, this offers excellent prospects for further agreements for the long-term and sustainable supply of the economy with CO₂-free energy.

Italy is pursuing ambitious expansion targets for renewable energies by 2030

At the end of 2023, installed renewable energy capacity in the Italian electricity sector amounted to around 65,150 MW, based on IRENA data. Around 30,000 MW of this is attributable to photovoltaics, around 18,900 MW to hydropower and 12,300 MW to onshore wind energy. Bioenergy accounts for around 3,400 MW, while deep geothermal energy has a capacity of 770 MW.

In July 2024, the Italian government submitted the updated National Energy and Climate Plan (NECP) to the European Commission. The plan envisages expanding renewable capacities in the electricity sector to a total of 131,000 MW (131 GW) by 2030 - double the level at the end of 2023. Most of this expansion, around 79,200 MW (79.2 GW), is to be accounted for by the photovoltaic sector. In the wind energy sector, a target of 28,140 MW (28.14 GW) is planned, of which 2,100 MW (2.1 GW) is to be accounted for by offshore wind farms, which do not yet exist in Italy. The hydropower sector will remain largely constant with a target of 19,410 MW (19.41 GW) by 2030. Bioenergy is set to reach a capacity of 3,200 MW (3.2 GW), which is below the currently installed value. A capacity of 1,000 MW is targeted for deep geothermal energy.

Source: IWR Online, 31 Jan 2025