Alterra expands its climate investment strategy into Italy
Alterra, the United Arab Emirates’ private climate investment fund, has announced a €50 million commitment in Italy to support Absolute Energy, a platform focused on renewable energy development.
The co-investment, made through Alterra’s Acceleration Fund, also involves US-based I Squared Capital, a global infrastructure investor headquartered in Miami. The agreement targets the development of an initial pipeline of 1.4 GW of solar power and battery energy storage systems across Italy.
A $30 billion fund launched at COP28
Launched at COP28 in 2023 with a total capital allocation of $30 billion, Alterra has so far deployed $6.5 billion, primarily in projects supporting climate action and the energy transition.
Until now, the fund had invested in only two platforms: Indian renewable energy company Evren and French firm Neien, committing $100 million to each.
Majid Al Suwaidi, Chief Executive Officer of Alterra, commented:
“We are excited to support Absolute Energy as it enters its next phase of growth. With a strong pipeline and deep sector expertise, the company is well positioned to help drive the future of clean energy in Italy. Alterra invests to accelerate climate transition through innovative approaches and partnerships. By collaborating with a global leader like I Squared Capital, with its proven track record in building platforms and investing in renewables, this investment further demonstrates how Alterra works with partners to invest at scale and accelerate impact in key markets.”
Alterra’s investment and Italy’s renewable targets
According to estimates, the 1.4 GW pipeline could reduce nearly 380,000 tonnes of CO₂ equivalent per year once operational. Alterra stated that the agreement with Absolute Energy aims to scale the platform to 6 GW over time.
Italy is targeting 46 GW of new solar capacity by 2030, a key milestone in achieving national net-zero ambitions. In this context, Absolute Energy plans to evolve into a next-generation independent power producer, capitalizing on opportunities linked to decarbonization and energy transition.
The move marks a further step in Alterra’s strategy to deploy capital in high-potential European markets while reinforcing financial and strategic ties between the Gulf and the EU clean energy sector.