Power Technology

Daily Newsletter

11 August 2023

Daily Newsletter

Deal Focus: XIBER Energy Solutions acquires Zanotti Energy Group

XIBER Energy Solutions, a member of the TESYA group of energy companies, has acquired renewable energy company Zanotti Energy Group.

Each week, Power Technology’s editors select a deal that illustrates the themes driving change in our sector. The deal may not always be the largest in value or the highest profile, but we select it because of what it tells us about where the leading companies are focusing their efforts, and why. We pick apart the deal itself and the industry theme behind it. This new, thematic deal coverage is driven by our underlying disruptor data, which tracks all major deals, patents, company filings, hiring patterns and social media buzz across our sectors.

The deal

Italian decarbonisation-focused energy company XIBER, a member of the TESYA group of energy companies, has acquired fellow Italian renewable energy company Zanotti Energy Group.

Why it matters

Given the ongoing global energy transition to combat climate change, European countries are turning towards electrification to facilitate decarbonisation. In purchasing Zanotti, the TESYA group has increased its standing in the European electricity market, and XIBER, in particular, has expanded its operations markedly.

“This acquisition represents an important step for the TESYA Group in its diversification strategy, aimed at gaining a prominent position in the energy transition technology market,' stated Carlotta Germanis, XIBER president. “[Zanotti’s] know-how is strategic for accelerating the diffusion of photovoltaic (PV) solutions throughout Italy and for the future growth of other technologies such as batteries and heat pumps, which we are convinced can play a key role in satisfying part of the needs of industrial processes.”

Zanotti stated it is already working on decarbonisation projects with XIBER. Solar PV generation accounted for 9% of total power generation and 19% of generative capacity in 2021; however, that number is expected to rise to 45% of total installed generation capacity by 2035 as a result of increasing investment into the sector by the EU and Italian governments.

The Italian renewable market expanded by 177% in 2022, giving XIBER ample opportunities to capitalise on. Zanotti’s high-tech expertise will be complemented with the financial capabilities of the TESYA group.

XIBER CEO Giovanni Longari explained: “We see the development of distributed photovoltaics as the first step towards the energy transition, with 84% of companies planning to install it at their production facilities. XIBER is not stopping at photovoltaics alone: we aim to become one of the first and most structured players, able to offer multi-technology turnkey solutions for the decarbonisation of medium-sized industrial enterprises in non-energy-hungry sectors.”

Beyond solar PV installation and consultancy, Zanotti also specialises in power plant management and manages around 750 power plants in Italy.

The detail

Neither company revealed the value or terms of the acquisition.

ESG 2.0 marks a shift towards stricter environmental rules

ESG is moving into a different era, which we call ESG 2.0. While ESG 1.0 was driven by voluntary corporate action, spurred by pressure from activist consumers and investors, ESG 2.0 is being driven by a new wave of government policies. The EU has taken the regulatory lead, with rules introduced or in the pipeline that will price emissions, regulate the use of the terms ‘ESG’ and ‘sustainability’ in marketing materials, and make ESG reporting mandatory. The US has taken a different approach, favoring less regulation and more financial support in the form of tax breaks for clean industry (renewables plus nuclear and hydrogen). China is planning to expand its emissions trading system to more sectors, decarbonize its heavy industry, and ramp up its use of renewables. The new policy direction is mainly motivated by the ambition to hit net zero emissions targets. But on top of this, governments are now competing for clean industry and trying to challenge China’s leadership on the production of the world’s green technologies such as solar panels and batteries, as well as the production and refinement of materials needed for energy transition such as lithium. These driving forces are leading to policy that will impact every sector, not just heavy industry, and will keep ESG near the top of the regulatory agenda over the longer term.