THE MINI HYDROELECTIC POTENTIAL
The theoretical potential capacity of small size Hydroelectric in Europe is 10.000 MW, of which 25% of it is located in Italy: A total of 2.500 MW, equal to an increase of approximately 15% by 2020 (Source: ESHA European Small Hydro Association).
This will be a benefit for both the environment and an opportunity for EPICO Group to develop.
With the enforcement of the Clean Energy Package, the EU proposed as revised directive for renewables, setting for Europe as a binding target to reach a share of at least 27% renewables in the final energy consumption by 2030.
Analysts are estimating that by the decade 2020-2030 the various countries will have to invest the amount of 25 billion euro into renewable energy in order to reach the target.
The result would be that within the next 14 years Italian production should grow by 70 TWh!
The Ministry for Economic Development has recently issued the new national energy strategy, which provides that renewable energy will have to reach a share of at least 50% in the national electric consumption and that hydroelectric sources will play a key role in this transition. Furthermore, this new strategy includes, even if in a smaller way, incentives in order to back investments.
The incentives in support of small size hydroelectric plants, such as Epico’s, will remain in force.
We plan to grow:
- internally by building new plants with sound civil and hydraulic works and highly automated, efficient and reliable machineries;
- Externally by acquiring new projects to develop and/or already operating power plants.
EPICO funds its subsidiaries to cover the equity stake for new investments.
Our current financial strategy typically does not envisage corporate debt. The equity stake for new projects is provided either from dividends or relying on the subsidiaries’ self-financing capacities.
Financing is provided by the banking system, with long term “non recourse” financing, secured by a project-related package and with prime interest rates available on the market.