Garofalo Health Care S.p.A. (“GHC”), one of the main accredited private healthcare operators in Italy, and Iren Mercato S.p.A. (“Iren”), an Iren Group company active in the sale of energy and services, today signed the preliminary binding agreement (“Term Sheet”) preparatory to the signing of a corporate Power Purchase Agreement (“PPA”) for the supply of electricity from renewable sources in the period 2024-2028 intended to meet the energy consumption of GHC.

As part of the agreement, approximately 60% of GHC's energy needs are expected to be covered by the 18.4 MW Iren Group photovoltaic plant located in Palo del Colle (BA) on the basis of a fixed price lower than the average values of 2021 (year before the energy shock).

In this way, GHC will considerably reduce the procurement price of the raw material, at the same time mitigating its exposure to the volatility of the energy markets over a medium-term horizon.

The agreement reflects the energy procurement strategy defined by GHC, completing the process started in 2022 with the creation of a beauty contest aimed at rationalizing and standardizing the supply at Group level through the progressive contracting of individual facilities with the new supplier during 2023.

Lastly, it should be noted that the transaction allows GHC to continue achieving its ESG objectives, by virtue of a 100% renewable supply certified by Guarantees of Origin.

Maria Laura Garofalo, Chief Executive Officer of GHC, stated: “This agreement represents an important step in the strategic path of GHC, not only for the positive impact in terms of savings and stabilization of energy costs, but also because it fully expresses the Group's continued ability to benefit from economies of scale for the rationalization and the efficiency of the main supplies. In Iren we find a partner of primary standing, whom we thank for having embraced a cutting-edge project in the accredited private healthcare sector and aligned with the Group's ESG objectives.”

Gianluca Bufo, Chief Executive Officer of Iren Mercato, stated: “The first Iren’s PPA for electricity sales, is perfectly in line with our strategy of strong development of renewable sources and sustainable value solutions for customers and a first concrete step toward our 2030 goal of selling, through PPAs, about 60% of the volumes of electricity generated by solar and wind power plants. The agility demonstrated by the commercial team of Iren Luce Gas e Servizi has also made it possible to capture, in the PPA signed today, further elements of value in the needs of the GHC Group with respect to a commodity scenario that is still very uncertain and volatile.”