By Giulia Petroni

Enel SpA said Friday that it has signed a grant agreement with the European Commission that will contribute to the development of a production facility for photovoltaic modules at its solar-panel factory in southern Italy.

The Rome-based energy company said the investment for the creation of the production facility amounts to around 600 million euros ($666.8 million), of which nearly EUR118 million will come from EU funding. The agreement was signed through subsidiary Enel Green Power Italia Srl.

Enel said it aims to increase production capacity at the factory located in Catania, Sicily, to 3 gigawatts a year from the current 200 megawatts. The facility is expected to be fully commissioned by July 2024.

According to Enel, this would make it Europe's largest gigawatt-scale factory producing high-performance bifacial photovoltaic modules. The panels can generate up to an approximate 5.5 terawatt hours of renewable electricity a year, an output that also has the potential to avoid the purchase of up to almost 1.2 billion cubic meters of gas a year, the company said.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

April 01, 2022 06:41 ET (10:41 GMT)

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