Pennetta & Partners Law & Tax Firm advises developers, investors, energy producers, agricultural and industrial businesses, funds and financial institutions on renewable energy projects, including solar, wind, hydroelectric, biogas and biomethane, energy storage and renewable energy communities. The firm has been active for more than twenty years, with offices in Rome and Milan, and works with a network of over 200 lawyers across Italy, which allows matters to be handled locally before the competent authorities. Our approach combines legal and tax expertise, so that each project is assessed from the outset in terms of permitting, contracts, corporate structure and taxation.
How we assist our clients
Our assistance covers the entire life cycle of a plant, from development to operation and, where relevant, sale. In particular:
- preliminary legal feasibility analysis, including planning, landscape and environmental constraints;
- support in permitting procedures, including the single authorisation and simplified procedures, and dealings with the competent authorities;
- sector contracts: surface rights, leases and easements, grid connection agreements, EPC and O&M contracts, supply contracts and power purchase agreements (PPAs);
- structuring of special purpose vehicles and joint ventures, and acquisitions or disposals of plants and projects, including due diligence;
- support in accessing incentive schemes and funding, including under the Italian National Recovery and Resilience Plan (PNRR), and in the related reporting;
- assistance in project financing transactions and in dealings with lenders;
- tax planning of the investment and assistance in dealings with the tax authorities;
Typical transactions and situations
For example, the firm may be asked to assist:
- an agricultural business planning a biogas or biomethane plant, with regard to permits, biomass supply contracts and relations with lenders;
- a fund or investor acquiring a portfolio of operating solar plants, typically following legal, tax and documentary due diligence;
- a developer who needs to obtain permits for a large wind or solar project and negotiate access to the land;
- an industrial company wishing to source renewable energy through a PPA or a self-consumption plant;
- a group of participants wishing to set up a renewable energy community, defining its legal form, governance and internal rules;
Legal and tax aspects to consider
Every project requires a specific assessment, but some issues arise frequently and deserve attention from the earliest stages.
- Regulatory framework. The rules are detailed and constantly evolving. Legislative Decree 199/2021, which implements the EU RED II directive, is a central reference for the promotion of energy from renewable sources; the rules on single authorisation, including Legislative Decree 387/2003, are also relevant for plants. The legislation in force at the time of the transaction should always be checked.
- Permits. The choice of the permitting procedure depends on the technology, capacity and location of the plant; mistakes or delays at this stage affect timing and the return on the investment.
- Incentives. Sector legislation provides for several support mechanisms, with requirements, conditions and reporting obligations that must be met over time to avoid forfeiture or recovery of benefits. Biomethane has its own incentive and permitting framework.
- Tax profiles. Attention should be paid to income tax, VAT and local taxes, the characterisation of revenues and any grants, and the tax implications of extraordinary transactions.
- Funding and PNRR. Public support measures come with specific conditions, implementation timelines and reporting obligations that need careful evaluation.
Frequently asked questions
Which permits are needed to build a renewable energy plant?
It depends on the technology, the capacity and the location. For many plants the single authorisation procedure under Legislative Decree 387/2003 applies, while smaller plants may benefit from simplified procedures. Environmental, landscape and planning opinions may also be required. It is advisable to check the legislation in force before starting any activity.
Is due diligence useful before buying an operating plant?
Yes. Due diligence verifies the validity of permits, ownership of the land, the status of connection and maintenance contracts, the position with regard to incentives and the tax aspects. The findings help to set the price, contractual warranties and any conditions precedent of the transaction.
What is a PPA and when may it be advantageous?
A PPA is a long-term contract for the purchase and sale of electricity generated by a plant, on agreed price and volume terms. It can provide greater predictability of costs or revenues, but requires careful negotiation of term, indexation, penalties and risk allocation. Whether it is advantageous must be assessed case by case.
Can incentives be revoked or recovered?
Sector legislation provides that, where requirements or obligations are breached, benefits may be forfeited or recovered. It is therefore important to comply with the access conditions, reporting duties and controls over time, keeping adequate records. Each situation must be examined in light of the applicable rules.
How is a renewable energy community set up?
A suitable legal form must be chosen, the articles and internal rules drafted, members identified, and governance and the allocation of benefits defined. The requirements of sector legislation, including those on the connection perimeter and the type of plants, must also be met. A preliminary review of the rules in force is advisable.
Let us talk
If you are considering a renewable energy project, you are welcome to contact the firm for an initial discussion of your needs. You can also learn more about our work in the energy sector or visit the page on all the industry sectors we cover.
The content of this page is for information purposes only and does not constitute legal or tax advice. Any specific case requires its own assessment.