Cheer for Italy’s agrisolar sector as projects attract €185m

Capital Dynamics said the projects will accelerate Italy’s energy transition and support sustainable agricultural practices.

Agrivoltaics (or agrophotovoltaics, agrisolar, or dual-use solar) is the dual use of land for solar energy production and agriculture.

Supporters claim agrivoltaics can help feed the world's growing population by increasing crop yields and allowing the soil to retain more water, while providing farmers with a second source of income which can help them reinvest in their business. They claim the concept improves water conservation, soil health and livestock health.

However, critics have claimed solar panels can reduce solar radiation reaching crops by up to 33%, potentially affecting crop productivity and quality, and concerns have been raised about their impact on local ecosystems and biodiversity. The sector also witnesses high capital costs, lack of clear policies and costs uncertainty regarding long-term financial returns and established markets for crops grown under agrivoltaic systems.

According to Capital Dynamics, the integration of solar energy with agriculture helps optimise land use and contributes to sustainability goals.

“This financing marks a significant milestone in accelerating Italy’s transition to clean energy,” says Dario Bertagna, managing director and co-head of clean energy at Capital Dynamics.

“By combining renewable energy with sustainable agriculture practices. We are not only contributing to the country’s energy goals but also fostering local economic development and environmental stewardship.”

It claims local communities will benefit to the tune of around €2 million in environmental and energy efficiency improvements.

It also insists the projects will surpass conventional renewable energy production by integrating innovative agricultural components.

Food production will be integrated within the field, with olive groves planted adjacent to the solar plants to support local olive oil production. Prickly pears will be cultivated between the solar trackers, and beekeeping initiatives will promote honey production within the project area. These efforts, Capital Dynamics says, will further support the regional agricultural economy and enhance biodiversity.

Capital Dynamics has been investing directly in clean energy assets in Europe since 2013 and currently owns and operates over 2GW of subsidy-free assets. Capital Dynamics’ Clean Energy platform makes direct equity investments in carbon-reducing, renewable power generating projects from late-stage development through commercial operations.