we do

Financial management and subsidies

The privileged relationship with leading banking institutions and investment funds allows Wegreenit to provide full support for the structuring of financial transactions customized to the type and size of the project. We are also able to identify the form of subsidy, both fiscal and financial, most suited to the project’s requirements, in Italy and abroad.

Our main activities:

Energy Performance Contract arrangement

The Energy Performance Contract (also known as EPC) represents a particular form of contract in which the Capex (and sometimes also the Opex) necessary to carry out an intervention, is paid, in whole or in part, through the energy savings that the intervention itself generates over a certain time frame. The technical details and the outline of the minimum elements that this type of contract must contain to be considered in line with the international regulatory dictate are defined in Annex VIII of Legislative Decree 102/2014, which transposes the contents of the European Directives on Energy Efficiency. The value of this contractual model is linked to the need to stimulate private investment in energy efficiency measures without significantly impacting the asset owner’s coffers. In an EPC, in fact, the owner of the asset will invest the value of the bill savings generated by the energy efficiency intervention to repay the E.S.Co. that carried out the work. The economic impact on the asset owner, for the years of duration of the contract, will remain almost unchanged compared to the pre-contractual phase. At the expiration of the contract, instead, the asset owner will enjoy the economic benefit from the bill savings.

The diagram below summarizes the economic structure of this contractual model.

An EPC contract must meet certain essential requirements:

contain a clear indication of the energy efficiency measures to be implemented with precise identification of the related energy, economic, and emission impact savings.
energy savings must be ensured through a careful ex-ante calculation procedure and constant verification of the achievement of ex-post targets, including through monitoring and the application of compensatory mechanisms in the event of failure to achieve the identified targets.
a key element is the clarity of the responsibilities and roles of the parties involved, with the precise allocation of the economic competence of the transaction and the financial implications.
for the entire duration of the contract, it is necessary that the counterpart in the contract manages the maintenance activity of the intervention (especially in the case of plant works) with the objective of guaranteeing the continuity of optimal performance levels of the intervention over time.

EPC contract models are varied. There are no typical schemes but different combinations that may result in different hybrid schemes:

“guaranteed savings” contracts in which the contractual agreement defines a minimum level of savings to be guaranteed and a fee to be paid to remunerate E.S.Co. In this type of contract, the debt is placed on the asset owner, while E.S.Co. performs the intervention and guarantees the amount of energy savings.
“pay from saving” contracts very similar to guaranteed savings, in which the fee is indexed to the actual savings achieved.
“shared savingsì” contracts are in which the contractual agreement provides a sharing of the economic value of the savings achieved between E.S.Co. and the asset owner. E.S.Co. assumes both the technical and financial risk of the operation, providing Capex, construction and O&M activities.
“first out” contracts (limited global transfer) in which E.S.Co. takes charge of the Capex, the implementation of the intervention and the O&M, and is the sole beneficiary of the revenues deriving from energy savings until contractual maturity.
“first-in” contracts, in which the E.S.Co. bears the cost of the Capex, the implementation of the intervention, the O&M and is the sole beneficiary of the revenues deriving from the minimum guaranteed energy savings until the contractual expiry date. The asset owner, for the entire contractual duration, instead, collects the overperformance, e. any greater savings generated by the intervention concerning the minimum guaranteed value.
“build-own-operate&transfer” contracts, in which E.S.Co. designs, builds, finances and operates a plant of which it remains the owner for a fixed period, at the end of which it transfers ownership to the customer.

PPA

PPAs (Power Purchase Agreements) are medium- to long-term power supply contracts concluded between a producer, who owns the plant, and a buyer (off-taker) who buys the energy produced by the producer.

Specifically designed to optimize and increase the use of energy produced by Renewable Energy Sources (RES), as well as to reduce CO₂, PPAs offer tailor-made solutions that are flexible and adaptable to the needs of companies, guaranteeing a supply for a contracted period and in contracted quantities, protecting the company from fluctuations in electricity market prices.

Power Purchase Agreements can vary according to the needs of the parties involved and are divided into two main formulas:

On-site PPA: producer and consumer must be physically close. PPA involves a direct physical electrical power supply within the so-called Solar Belt. On-site PPA is the perfect solution for those who have a suitable roof to house a plant, but do not want to invest the capital in its construction, preferring to externalize the investment, design, and operational risks.
Off-site PPA: if the company does not have adequate space, or there are environmental or logistical constraints, it is not possible to build an on-site plant. In this case, the producer supplies clean energy using the public grid as a transport vector. The off-site PPA therefore does not involve a direct physical connection between producer and consumer, and the generated self-consumption is virtual.