RCS - Zenith Energy Ltd - €23 billion Italian renewable energy scheme

About this update from Zenith Energy Ltd.

RNS Number : 0982I Zenith Energy Ltd 12 June 2026 June 12, 2026ZENITH ENERGY LTD.("Zenith" or the "Company")European Commission approves €23 billion Italian renewable energy support schemeZenith Energy Ltd. (LSE: ZEN; OSE: ZENA; XSAT: ZENA SDR), the international energy production and development company, is pleased to note the European Commission's approval, announced on June 8, 2026, of a €23 billion Italian State aid scheme to support electricity production from renewable energy sources (the "Scheme"), a development the Company believes carries significant positive implications for its 188.5 MWp Italian solar development portfolio, held through its wholly-owned Italian solar subsidiary, WESOLAR S.R.L. ("WESOLAR").Highlights· The European Commission has approved a €23 billion Italian State aid scheme under the Clean Industrial Deal State Aid Framework ("CISAF") to support new renewable electricity generation in Italy, including solar power, onshore wind, hydropower and sewage gas.· The Scheme is expected to support the addition of approximately 37.15 GW (Gigawatt) of new renewable electricity capacity in Italy, equivalent to approximately 48% of the country's current installed renewable capacity.· Support will be provided through two-way Contracts for Difference ("CfDs") with a duration of 20 years, providing producers with long-term revenue visibility based on a defined strike price for each kWh of electricity produced and fed into the grid.In practical terms, the two-way CfD operates through a symmetrical adjustment mechanism. If the reference market price of electricity falls below the agreed strike price, the Italian State pays the producer the difference. Conversely, if the reference market price rises above the strike price, the producer returns the excess amount to the State. This mechanism effectively stabilises the revenue received for each eligible kWh at the strike price throughout the 20-year term, reducing exposure to market volatility while preventing windfall gains when electricity prices are unusually high.· Solar and wind projects with a capacity above 1 MWp will be awarded CfDs through a transparent competitive bidding procedure, where applicants will be required to satisfy pre-selection criteria under the Net Zero Industry Act.· Renewable energy installations with a capacity below 1 MWp are eligible to access the scheme directly, with...

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