Capital Dynamics has bought two ready-to-build agrivoltaic projects in Sicily with a combined authorised capacity of about 251 MWp. Both carry 20-year contracts from Italy's FER X Transitory auction. Those contracts cover 210.65 MW. The difference is not rounding, and it is not the grid connection either.
Key takeaways
- Capital Dynamics acquired the ready-to-build S&P 6 and S&P 7 agrivoltaic solar projects in Partinico, Palermo province, Sicily, announced on 29 October 2026 with no disclosed consideration, taking its Italian clean energy investment above 900 MW.
- The portfolio holds 20-year contracts-for-difference from Italy's FER X Transitory auction covering a combined eligible capacity of about 210.65 MW, against an authorised capacity of 250.71 MWp and a grid export rating of 200 MWac.
- The 139.85 MWdc S&P 6 project secured support on 129.12 MW at a 39.463 percent discount to the maximum reference price of €90.689 per MWh, giving a base strike price of about €54.90 per MWh.
- The 110.86 MWdc S&P 7 project secured support on 81.53 MW at a 37.258 percent discount, giving a base strike price of about €56.90 per MWh, and the portfolio's capacity-weighted average tariff is about €55.67 per MWh, equal to $61.98 per MWh.
- Enerdatics records 107 Italian solar M&A transactions since the start of 2024, of which 33 carry a disclosed value, and 22 of those 33 share a single buyer.
Who sold the portfolio, and how firmly is that known?
Here the record carries a caveat worth stating plainly. Neither party disclosed the assets or the seller. Enerdatics identified the two projects through its transaction intelligence, matching reported location, capacity, development stage and power sales arrangement against S&P 6 and S&P 7, and links those projects to Steag Iqony Group. On that basis Enerdatics indicates STEAG is the likely seller. That is an assessment, not a confirmed disclosure, and the analysis below holds either way.
What is not in doubt is the process. The sale was competitive, involving collection of offers, due diligence, negotiation and structuring. L&B Partners advised the seller on financial matters, with L&B Partners Avvocati Associati on legal and REA, Reliable Energy Advisor, on technical. Dentons advised Capital Dynamics. A full advisory stack on both sides is not how a distressed exit looks.
Capital Dynamics is not new to this trade. It bought a 63 MWp UK solar project with CfD cover earlier in 2026 at the same stage. That is the pattern: buy once revenue is contracted and permits are final, taking construction risk but not price risk.
How much of a 251 MW portfolio does the subsidy actually cover?
Eighty-four percent, and the units make that confusing. Agrivoltaics means solar installed so the land underneath stays in agricultural use, which in Italy is a permitting advantage rather than a technology difference. A contract-for-difference, or CfD, pays the generator the gap between a fixed strike price and the market price, and claws it back when the market runs above. FER X Transitory awarded these contracts competitively, with bidders discounting from a maximum reference price.
The two projects are authorised at 139.85 MWdc and 110.86 MWdc, summing to 250.71 MWp. Their CfD-eligible capacity is 129.12 MW and 81.53 MW, summing to 210.65 MW. So 40.06 MW sits outside the subsidy and earns whatever the Sicilian market pays. On S&P 6 the contracted share is 92 percent of nameplate; on S&P 7 it is 74 percent. The average of 84 percent hides a wide spread.
Here is the trap. Each project exports at 100 MWac, so the combined grid rating is 200 MWac, and the CfD-eligible 210.65 MW exceeds it. Comparing the contracted figure against export capacity suggests the plants are fully contracted with room to spare. That reads a DC-side subsidy against an AC-side grid limit. Both are correct in their own units, and the portfolio's DC to AC ratio of 1.25 reconciles them. The same mismatch has repriced German solar deals this year.
What does a €55.67 strike price say about the auction?
That bidders were confident enough to leave nearly 40 percent of the reference price on the table. S&P 6 bid a 39.463 percent discount to the €90.689 per MWh ceiling and S&P 7 bid 37.258 percent, landing at €54.90 and €56.90 per MWh. A developer bids that aggressively only when build cost and yield will clear the resulting revenue comfortably, and Sicilian irradiation is among the best in Europe.
The permitting record supports that confidence. S&P 6 took environmental approval in July 2022, Single Authorisation in November 2022 and Regional Unified Authorisation, the PAUR, in March 2023. S&P 7 followed the same ladder between March and October 2023. A PAUR consolidates a project's environmental and construction consents into one regional instrument, and holding it is what makes a project genuinely ready to build rather than merely approved. S&P 6 also includes a proposed 30 MWh battery, small enough against 139.85 MWdc to read as a grid services option.
Enerdatics records 107 Italian solar M&A transactions since the start of January 2024, and only 33 disclose a value. The concentration inside that 33 is the striking part: 22 share one buyer, Zenith Energy, acquiring small development sites, so the apparently priced segment of the Italian market is mostly one serial acquirer of sub-50 MW assets. Across priced Italian solar deals involving assets under development the median is about $0.12 million per MW, recently tested at land value for a 10 MW site in Pavia. Only two priced transactions above 100 MW exist in the period: Encavis buying 265 MW of operating assets from EDP at about $1.32 million per MW in August 2025, and Clal Group buying 197 MW under development from Ellomay Capital at about $0.29 million per MW in April 2025.
What does the deal signal for Italian solar?
It signals that FER X has given Italian ready-to-build assets what the market lacked: a contracted revenue line a foreign investor can underwrite without a view on Italian power prices. Capital Dynamics has now passed 900 MW of Italian clean energy investment, built by buying consented projects with auction contracts attached rather than operating plants at operating multiples.
The pricing consequence is that this segment should become more transparent, slowly. A project with a known strike price on a known share of its capacity can be valued by discounting a contracted cash flow, which narrows the bargaining range. Against that, 74 of 107 Italian solar transactions since 2024 remain undisclosed, and buyers in a competitive auction have no reason to publish what they paid. Expect the capacity-weighted tariff, not nameplate, to become the number people compare.
Frequently asked questions
What did Capital Dynamics buy in Sicily?The ready-to-build S&P 6 and S&P 7 agrivoltaic projects in Partinico, Palermo province, with a combined authorised capacity of 250.71 MWp and a grid export rating of 200 MWac. The consideration was not disclosed, and Enerdatics identifies the likely seller as Steag Iqony Group from its own analysis rather than a public disclosure.
What is Italy's FER X Transitory auction?A competitive tender awarding 20-year contracts-for-difference to renewable projects, in which bidders discount from a maximum reference price. Here the ceiling was €90.689 per MWh and the winning bids landed at about €54.90 and €56.90 per MWh.
How much of the portfolio earns a subsidised tariff?About 210.65 MW of 250.71 MWp, or 84 percent, leaving roughly 40 MW on market prices. The split is uneven: 92 percent of S&P 6 against 74 percent of S&P 7.
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