ALTÉRRA Commits €50 Million to Absolute Energy to Support Gigawatt-Scale Renewable Energy Development in Italy
ALTÉRRA, the United Arab Emirates’ $30 billion climate-focused investment platform, has announced a major strategic investment into the future of renewable energy in Europe. Through its ALTÉRRA Acceleration Fund, the organization has committed €50 million to Absolute Energy, an innovative and rapidly growing Italian renewable energy platform. This substantial commitment is being made in partnership with global infrastructure investment powerhouse I Squared Capital and will serve to drive the acceleration of an ambitious 1.4 gigawatt (GW) renewable energy pipeline across Italy.
The investment is a strategic step aligned with ALTÉRRA’s broader mission of catalyzing climate transition by partnering with institutions and platforms that demonstrate high potential for measurable environmental impact and economic scalability. The €50 million commitment is designed to significantly bolster Absolute Energy’s efforts to expand its footprint within Italy’s renewable energy sector, particularly in the solar and battery storage segments.
Enabling Italy’s Clean Energy Vision
Italy has emerged as one of the leading European countries actively working to transform its energy system in line with ambitious climate goals. The country has committed to deploying an additional 46GW of solar capacity by 2030 as part of its national plan to reach net zero greenhouse gas emissions. This endeavor is driven by a mix of environmental and economic imperatives: reducing greenhouse gas emissions, strengthening energy independence, meeting rising electricity demand, and cutting reliance on fossil fuel imports—especially in the wake of energy market disruptions across Europe in recent years.
Italy’s renewable energy landscape is benefiting from a strong and supportive regulatory environment. Policies such as accelerated permitting processes, guaranteed grid access for renewables, and financial incentives for green energy production have helped create fertile ground for solar project development. High levels of solar irradiation also make Italy one of the most promising regions in Europe for photovoltaic energy production.
Absolute Energy is well-positioned to capitalize on these favorable conditions. The company has been building a diversified portfolio of small- and medium-scale solar and storage projects distributed across the Italian grid. These distributed generation assets allow for more flexible deployment and faster implementation timelines compared to large utility-scale installations. With a current active pipeline of 1.4GW and a broader development pipeline exceeding 6GW, Absolute Energy is on track to become one of Italy’s foremost Independent Power Producers (IPPs) focused exclusively on clean energy.
A Scalable Model for Decentralized Energy Infrastructure
Absolute Energy’s development strategy is based on the premise that distributed energy resources (DERs)—such as localized solar plants and co-located battery storage—offer a more resilient, scalable, and adaptive approach to accelerating energy transition in complex markets. By avoiding overreliance on centralized mega-projects and instead deploying a high volume of medium-sized systems, the company can more effectively navigate permitting hurdles, align with local energy needs, and enhance grid reliability.
Each project within Absolute Energy’s initial 1.4GW pipeline is designed to be economically viable and commercially robust. The modular nature of its portfolio allows the company to implement assets quickly, ramp up construction in tandem with regulatory timelines, and contribute meaningfully to Italy’s 2030 energy targets. In addition to solar PV systems, Absolute Energy integrates advanced battery storage technologies into many of its projects, providing greater grid flexibility and enhancing energy resilience.
According to ALTÉRRA, the environmental impact of this pipeline is significant. Once operational, the 1.4GW of solar and storage capacity could eliminate as much as 380,000 metric tons of carbon dioxide equivalent (CO₂e) emissions each year. This reduction is not only crucial for meeting Italy’s national climate commitments but also contributes to the broader European Union goal of becoming climate-neutral by 2050.
Strategic Collaboration Between Global Climate and Infrastructure Leaders
The partnership between ALTÉRRA and I Squared Capital represents a model of how climate finance and infrastructure investment can be synergistically combined to support clean energy acceleration at scale. I Squared Capital is a globally respected manager with a track record of investing in and building infrastructure platforms across energy, transport, water, and digital sectors. Its portfolio includes numerous renewable energy investments around the world, making it a natural fit for supporting Absolute Energy’s vision.
ALTÉRRA’s involvement not only brings capital but also strategic alignment with long-term climate objectives. Created as part of the UAE’s international climate agenda, ALTÉRRA was launched at COP28 in 2023 with the goal of channeling significant investment into projects that deliver measurable climate outcomes. Its focus areas include renewable energy, sustainable industry, low-carbon infrastructure, and nature-based solutions.
By working closely with I Squared Capital and Absolute Energy, ALTÉRRA is ensuring that its investment capital is directed into projects that are not only bankable but also transformational in their potential to reduce emissions and support energy security.
Leadership Perspectives on the Investment
In a statement announcing the investment, His Excellency Majid Al Suwaidi, Chief Executive Officer of ALTÉRRA, emphasized the strategic significance of the partnership. “We are excited to support Absolute Energy as it enters its next phase of growth,” Al Suwaidi stated. “With a strong pipeline and deep sector expertise, the company will help drive Italy’s clean energy future. ALTÉRRA invests to accelerate the climate transition through innovative approaches and partnerships. In working with a global leader like I Squared Capital with their strong track record in platform building and investing in renewables, this investment further demonstrates how ALTÉRRA works with partners to invest at scale to accelerate impact across key markets.”
Sadek Wahba, Chairman and Managing Partner of I Squared Capital, also expressed enthusiasm about ALTÉRRA’s involvement. “We are proud to welcome ALTÉRRA as a strategic partner in Absolute Energy,” he said. “Their investment underscores the strength of the platform and the scale of the opportunity in accelerating Italy’s energy transition. ALTÉRRA brings deep climate focus and ambition, and we share their commitment to deploying capital with urgency and impact. This partnership is a powerful endorsement of Absolute Energy’s innovative model and I Squared’s long-standing approach to building transformational infrastructure businesses in critical sectors around the world.”
Aligning with Broader European and Global Energy Goals
This initiative aligns closely with broader European Union energy goals, including the REPowerEU plan which aims to reduce reliance on fossil fuels, particularly imports, by diversifying energy sources and rapidly scaling renewables. As part of this vision, the EU is investing heavily in infrastructure, interconnections, and renewable energy manufacturing capacity.
ALTÉRRA’s investment also reinforces the role of global South capital in addressing global energy challenges. The UAE, through initiatives like ALTÉRRA, is emerging as a major player in financing the global energy transition, not only in the Middle East and Africa but also in advanced markets like Europe where the need for accelerated action is particularly acute.
With funding now secured from both ALTÉRRA and I Squared Capital, Absolute Energy is poised to rapidly scale up its construction and deployment activities. The months and years ahead will likely see a steady stream of new projects entering construction and coming online across various Italian regions.
More broadly, this partnership demonstrates how well-capitalized and mission-aligned investors can play a decisive role in transforming the global energy landscape. Through strategic funding, technical expertise, and shared commitment to decarbonization, ventures like this one set a precedent for how climate goals can be translated into concrete, impactful action.
