Business Model
The Epico industrial group invests with a multi-source approach in renewable energy production plants with installed power between 100KW and 10MW.
The Group's primary strategy in the hydroelectric sector is to recover unused and unexplored energy potential and enhance existing infrastructures, already used for different purposes, such as dams, irrigation canals and aqueduct pipelines. The use of already existing infrastructures makes it possible to reduce the intensity of investments functional to the construction of the plants, simplify the authorization process and generate greater profitability.
Water, wind and solar are the sources in which the Group intends to invest in the coming years. These sources are perfectly complementary to each other because they represent a form of "natural hedging" allowing the stabilization of energy production and consequently of revenues.
The investments are also designed with the aim of achieving geographic economies in the subsequent management and maintenance phase. New projects are developed as a priority in areas close to those where the plants already in operation are located.
Epico considers it strategic to invest in the niche of systems between 100KW and 10MW for the following main reasons.
- authorization simplicity and bureaucratic speed
- scarce presence of structured competitors
- high entry barriers: technological level, multidisciplinary skills and capital intensity
- favorable European and national legislation
- risk splitting across multiple production units
- ease of obtaining the portion of debt to cover investments
Epico carries out the coordination and management of the Group's economic and financial activities, planning its own investments and those of its subsidiaries. To support the implementation of new projects, it makes the equity portion available and sources the debt portion from the banking system by structuring long-term financing that includes a package of limited guarantees, agile contractual solutions and competitive rates.
