Italy’s Project Sophocles gets EIB support for green transition
European Investment Bank, Natixis Corporate & Investment Banking and Sunprime Holdings S.r.l. have signed a €507 million project finance deal to support Project Sophocles, a major Italian solar and battery storage program.
The project will finance around 200 photovoltaic (PV) plants totalling 290 MWp, paired with 350 MW of battery energy storage systems (BESS), CE Report informs via the EIB.
By combining distributed solar with large-scale storage, the program aims to improve grid flexibility, support renewable integration, and strengthen Italy’s electricity system. The EIB will provide up to €271 million in financing.
Once operational, Project Sophocles is expected to generate 416 GWh of renewable electricity annually, enough to power more than 160,000 households, and avoid roughly 2.86 million tonnes of CO₂ emissions over its lifetime. Most installations will be on industrial rooftops or existing commercial surfaces, minimizing environmental impact.
The project portfolio will be structured into 6–12 cross-collateralized clusters, with revenues derived from Italy’s Contract for Difference mechanism, tolling agreements, capacity market participation, and wholesale electricity sales. The BESS assets will provide frequency regulation, peak shaving, and congestion management services, reducing reliance on gas-fired generation.
The program is expected to create about 1,400 person-years of temporary construction employment and roughly 120 permanent operations jobs. Investments will be implemented between 2026 and 2028 across several Italian regions, including cohesion areas prioritized for green transition and economic development.
The operation is backed by the InvestEU Guarantee, part of the €26.2 billion EU budget designed to mobilize sustainable infrastructure investment across Europe. Project Sophocles aligns with Italy’s 2030 National Energy and Climate Plan and the EU’s REPowerEU strategy to accelerate the shift away from fossil fuels.
Legal and technical advisory teams include Legance, Ashurst, Praxi, AON, KPMG, and ValeCap.
The EIB Group, owned by the 27 EU Member States, is among the world’s largest multilateral development banks, supporting projects in climate action, digitalization, infrastructure, and innovation. Its subsidiary, the European Investment Fund, provides guarantees and equity to improve finance access for European SMEs and startups.
Photo EIB
