Italian solar secondaries heating up

The alternative asset class secondaries market in electricity captured through solar panels In Italy is thriving, according to advisory firm Prothea.

The Italian secondaries market in electricity captured by solar panels transacted €700 million last year, according to a report from Italian financial advisory firm Prothea Group.

The market, known as the photovoltaic secondaries market, completed thirty transactions totalling 250 megawatt-peak of electricity, worth the €700 million figure, according to the report.

Milan-based Prothea compiled the estimated conclusions of several consultancy firms, including Bologna-based advisory group Reliable Energy Advisors (REA), the firm which provided the estimated figure of 250MWp for 2013.

The firm said it had advised on €70 million worth of deals, 10-15 percent of the sector’s secondaries market transactions.

Prothea founder David G. Armanini said he expected the market to consolidate in 2014 with private equity firms active on the sell side.

“We expect a jump start of deals involving the most active players of the last two years, such as the private equity players, with investment horizon of 3 to 5 years that will exit towards long term players such as infrastructure investors, real estate investors and pension funds,” said Armanini.

Founded in 2008, Prothea focuses on water and renewable energy sources, and it said it has advised on more than €400 million of transactions, according to a statement.