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Clean energy for EU islands

Hybrid PV and storage plant in Pantelleria Airport – Financial Assessment

Pantelleria
Publication Date
Language
Publishing Organisation and Month/Year
Clean energy for EU islands secretariat 03/26
Islands
Country
Clean energy theme
Financing renewable energy projects
Renewable energy

This report presents the financial assessment of PV and BESS configurations for the airport site, complementing a previously delivered technical study (January 2025) for the island of Pantelleria. The goal is to determine the most financially viable investment scenarios for various stakeholders, including private investors, the Regulatory Authority, and the Distribution System Operator (DSO). 

A dedicated financial model assessed each scenario over a 20-year horizon, incorporating CAPEX, OPEX, depreciation, feed-in tariffs, avoided diesel costs, financing conditions, and inflation. For PV, production degradation and curtailment were modelled; for BESS, round-trip efficiency, capacity fade, and cycling limits were considered. 

The results suggest that, for private investors, a PV-only plant at Pantelleria Airport is the most viable choice under current conditions. For the public sector or regulated investment, a grant-funded BESS project without replacement offers the highest return — provided long-term operational performance is assured. The possibility of considering the BESS plant as a regulated asset, for which the DSO can receive amortisation of the investment and return on capital, also ensures significant savings, without requiring direct public investments. Continuous model updates and technical monitoring are essential to adapt to changing market, policy, and technological conditions. 

Document

TA_Phase III_Hybrid PV and storage plant in Pantelleria Airport – Financial Assessment