Circular economy principles in action

Strengthening local ties with wind power community funds

Background

Solar photovoltaic technology is widely regarded as a key driver of efforts to decarbonize energy systems. In 2024, solar power generated more electricity in the European Union than coal for the first time. But the technology also comes with certain challenges. Largescale solar power plants require plots of land that may stand in conflict with other, e.g. agricultural, use. Manufacturing of the modules and other components needed to build them use substantial amounts of materials like copper, glass or crystalline silicon.

At Sunscreen, a group of solar power plants in Southern Europe and EIP portfolio company, our partner ContourGlobal, is striving to address precisely these drawbacks with an ambitious technology upgrade and recycling plan.

ESG in action

In 2024 ContourGlobal began significantly upgrading the solar fleet in Italy. The project consists of, in a first phase, revamping components, which means replacing old modules and inverters with state-of-the-art technology and better solar tracking systems. This upgrade enhances efficiency and sets the stage for the second phase – repowering – which leverages the higher power density of the new modules to install additional capacity, subject to regulatory approval and grid connection. The revamping and repowering of the Italian solar fleet will add 18 megawatt, bringing the total installed capacity to 113 megawatt. Moreover, it also endeavours to improve the fleet’s overall sustainability performance.

Notably, the upgrade is being realised without expanding the land footprint, thanks to the higher power density of the next-generation modules, which require fewer units for the same or larger production output and thus relatively less space. Furthermore, discarded modules undergo end-of-life processing to recover 97% of the materials contained therein. Where possible, ground-mounted steel structures and inverters are reused or undergo similar processing.

“Our PV revamping and repowering projects in Italy showcase the relevant technological progress as well as the sustainability upgrades that make the upcoming phase of renewable development much more friendly for the environment thanks to circular economy principles.” says Antonio Cammisecra, ContourGlobal CEO.

Outcome

Once completed, the project will not only increase the annual power production by 43% without additional land but will enhance the circularity of the solar power plants, ensuring the electricity generated is more sustainable and resource efficient for the future.¹

Note: Case study for illustration purposes only. Holdings are subject to change, this does not constitute investment advice to buy or sell the presented securities.