The renewable energy industry, in particular photovoltaic and wind power energy, has excellent growth and development prospects. The significant growth expected is driven by the increase in energy demand and in the prices of traditional sources, as well as by the EU and national incentive policies and the greater focus on environmental issues. TerniEnergia intends to continue its development strategy, so as to enhance and consolidate its position as an operator focused on renewable energies, with particular regard to the construction of photovoltaic systems and photovoltaic energy production. Moreover, the Company intends to continue to develop its wind-power business.

Photovoltaic energy
The Issuer intends to consolidate its position on the photovoltaic market by concentrating its activity on the construction of large systems, the identification of strategic partnerships, entry into foreign markets and possible acquisitions of companies in the industry.

Focus on large systems
As of the Date of the Prospectus TerniEnergia operates on the photovoltaic market as a system integrator offering its customers “turnkey” photovoltaic systems with generally over 20 kWp of power. Building on the know-how it has gained and the organization it has set up over the years, the Company is increasingly focusing on marketing, designing and installing large systems (with power rating exceeding 150 kWp).

The decision to focus on large photovoltaic systems is linked mainly to the following factors:
i) achievement of considerable economies of scale, in particular on costs related to designing, opening, closing and ensuring the safety of the construction sites, transport and personnel travel costs;
ii) achievement of significant efficiencies for authorization/bureaucratic procedures with respect to small systems which, installed kW being equal, would require a higher number of processes to complete;
iii) more selective competitive environment with few operators able to install large systems.

Identification of strategic partners
As of the Date of the Prospectus TerniEnergia produces electrical energy by sunlight conversion through SolarEnergy, joint venture with EDF Italia, and EnergiaAlternativa, joint venture with Valle D’Aosta Energie. The Company intends to increase its electrical energy production business both by developing the joint ventures it has already incorporated and by identifying other strategic partners with which it will incorporate new joint ventures. Moreover, TerniEnergia intends to intensify the search for industrial or financial partners to whom to propose the acquisition of photovoltaic systems built by the Company, which it would continue to operate and service (so-called build, operate and transfer formula).

Entry into foreign markets
TerniEnergia will assess any opportunities for penetrating into foreign markets, both through the acquisition of local operators, and through partnerships with important industrial groups. Today, the most attractive markets in TerniEnergia’s judgment are the Spanish market, highly similar to the Italian market and with very interesting historic and expected growth rates, and Eastern European markets.

Acquisitions in the industry
TerniEnergia will assess any external growth opportunities, through the acquisition of companies operating both in the production of basic components (mainly panels and inverters) and in the same sector (small operators with a well-established presence in the territory).


Wind-power energy
As of the Date of the Prospectus, the Company is also active in the wind-power industry, capitalizing on design and operating synergies with the photovoltaic industry. In the Umbria Region, TerniEnergia has identified 3 sites that meet requirements for the installation of wind-power plants: Colle Ventatoio, Colle Vagliamenti and Monte Macchialunga. The Issuer intends to develop its activities in the wind-power industry both by building the wind-power fields it has already identified, and by searching for new sites.
TerniEnergia intends to develop directly the wind-power parks that will receive the authorization through agreements with one or more industrial partners, selected with particular focus on their technical expertise and reputation in the industry, on the ability to procure basic components and on their presence in the territory where the plant will be located.