US-based investment firm Sixth Street has recently completed a 38% acquisition of Italian energy provider Sorgenia. Sorgenia is Italy’s 3rd largest producer in the renewable space. The deal values Sorgenia slightly over €4 billion ($4.6 billion). This agreement is a step in a larger plan to increase development in the renewable space throughout Italy and Spain. This investment will further advance Sorgenia’s positioning in the energy transition market in Europe.
Sorgenia, which is presently overseeing 1.7 gigawatts (GW) of installed renewable capacity and is making plans to install a further 5 GW. Through its subsidiary EF Solare, the company’s portfolio includes one of the largest photovoltaic operators in Italy. It’s got the participation of Spanish players Renovalia and Renovalia Tramontana. Sorgenia operates approximately 4.4 GW of gas fired power plants. These facilities continue to play an essential role in maintaining system stability, as we manage the increasingly complex energy transition ahead of us.
Strategic Growth in Renewable Energy
This investment further builds on Sixth Street’s focus on investing in the development of renewable energy infrastructure. Sorgenia’s large portfolio and its investment in growing more renewable capacity—primarily solar—are important parts of this strategy. The joint venture under Sorgenia provides for an improvement of the operational efficiency and the attainment of synergies among the different assets.
Richard Sberlati, a partner at Sixth Street, emphasized the significance of this agreement, stating:
“This agreement establishes Sorgenia as one of the leading energy infrastructure platforms in Europe, and we’re pleased to be collaborating with the F2i and Sorgenia teams on this transformational transaction.”
Sixth street’s partnership with F2i, an independent Italian infrastructure fund manager, makes this one arguably the best of the bunch. This collaboration enables F2i to consolidate its energy transition assets under the Sorgenia umbrella, reinforcing the company’s position in the market.
F2i’s Role in Energy Transition
Renato Ravanelli, CEO of F2i, underscored the significance of this transaction as providing a basis for the company’s future growth path. He noted:
“With this transaction, F2i successfully reaches an important next step in a long and significant industrial growth journey in the energy sector. The development and consolidation of Sorgenia once again confirms F2i’s ability to promote the growth of national and European-scale players in strategic sectors such as energy transition.”
The partnership demonstrates the common vision between Sixth Street and F2i to accelerate the energy transition across Europe. Both companies are working together to build Norddeutsche Sotorvornie’s capacity. They further hope to extend its reach into the growing renewable energy economy.
A Comprehensive Service Offering
Sorgenia has a solid portfolio of renewable energy assets. It makes a large range of services, from electricity and gas retail to fibre connectivity and smart green technology solutions. Today, the company has over one million customers from all sectors.
Particularly smart Sorgenia is taking steps to expand and deepen its strategic operations. Together, these efforts will cement its reputation as the new European queen bee of the energy market. The combination of Sixth Street’s investment and F2i’s management expertise positions Sorgenia well for future growth amid increasing demand for sustainable energy solutions.