Energy SpA has now finalised the negotiation and structuring of a temporary business association contract (German: ARGE for Arbeitsgemeinschaft) with Koenigskreuz, a specialist company based in Austria working in photovoltaic technologies.
Energy SpA is active in the offer of integrated electricity storage systems on Euronext Growth Milan. The value of this supply of storage system and services is EUR 25.7 million.
Rechtsanwalt Dr Andreas Eustacchio, LL.M. (LSE) has provided legal advice to ARGE Energy Königskreuz on their first business cooperation on the Austrian Market.
“With our advice, we have made a significant contribution to putting the Italian-Austrian cooperation between Energy and Königskreuz on a solid legal footing for the successful delivery of battery storage systems and associated services worth 25.7 million euros for ASFINAG in Austria.”
Q&A with Andreas Eustacchio
Andreas, can you expand on this transaction for this contract between Konigskreuz and Energy SpA, what were the clients’ priority requests for this contract and were they met?
A pivotal challenge of the legal advice was the timely drafting and negotiation of the business association contract, which clearly defines the single tasks and responsibilities of Energy S.p.A. and Königskreuz GmbH within the framework of the joint venture.
With our advice, we have made a significant contribution to putting the Italian-Austrian cooperation between Energy and Königskreuz on a solid legal footing for the successful delivery of battery storage systems and associated services worth 25.7 million euros for ASFINAG. For ASFINAG this involves achieving three goals: complete energy autonomy by 2030, energy resilience to protect data (an extremely topical issue), and motorway fast charging supported by energy from renewable sources.
How does this contract benefit your client and what negotiations were necessary to make sure Energy SpA of Italy and Königskreuz of Austria were satisfied with the outcome?
The joint venture with Energy SpA as the leading part has won an important tender from ASFINAG Autobahn Service GmbH, a motorway concessionaire in Austria, and prevailed against other industrial entities. The successful collaboration will now enable the production and delivery of the battery storage systems and associated services worth 25.7 million euros for ASFINAG over the next 18 months.
It is particularly noteworthy that the energy storage systems are produced by Energy S.p.A. in Italy and therefore come from European production.
Can you tell us about your team for this project, what skills were required to bring to the table for this and why did your team at Eustacchio Attorneys at Law of Vienna make for the most suitable choice?
Foremost it was necessary to have an in-depth knowledge of the Italian and Austrian markets as well as experience with industrial companies and the energy sector. I have been advising Italian clients in Austria and vice versa for more than 20 years now. With my expertise in the Austrian and Italian markets and knowing about the strength of the Italian industry I was able to set the legal course for success in Austria together with Studio Legale Macchion & Resoli on the Italian side.
The agreement had to ensure that all legal and technical provisions of the Austrian energy sector were complied with. To this end, it was first also necessary to clarify which legal requirements had to be met for the Austrian market.
During this project were there any challenges or changes that arose and how did these get addressed by you and your team, how do you stay open for new negotiations?
Commercial and legal success is about understanding the client and the culture of their country. As I acted as legal advisor for both the Italian Energy S.p.A. and the Austrian Königskreuz GmbH, my role was also to act as a mediator to resolve any differences that arose during the contract negotiations, both from a legal point of view and in relation to various business and technical aspects. This was also done under time pressure and strict time constraints due to the tender.
Andreas, with a wealth of experience across various industries, what was your strategy for this specific client and how does your experience guide you through current and future projects, do you have a personal strategy mastered?
The key to success was ‘trust’ in me as a person and my team as well as in my work as a legal advisor. It was thus very important that the dialogue between the two parties did not break down, even during the period in which contractual sticking points had to be overcome. It was therefore important for us to repeatedly discuss with the two partners legally sensible and economically viable points and to immediately submit proposals so to ensure that the collaboration between the two partners would be a successful one in the future.
If only one of the two partners had not trusted me 100% during these phases, we would not have been able to achieve this success.
Would you tell us about the value of the storage systems and the benefit of having further supply options of around EUR3 million?
The tender is the first of its kind won by Energy S.p.A., as a partner of the ARGE Energy S.p.A. Königskreuz GmbH and is international recognition of Energy S.p.A.’s strategy, which confirms its leading position in the renewable energy sector. The Company is at the forefront of the transition to a sustainable energy future, constantly investing in research to develop increasingly efficient and sustainable products, thus confirming its influence in the European energy storage market.
What is next for by EUSTACCHIO legal advisory of Vienna, what plans are there for growth or upcoming projects to watch out for?
We will now continue providing legal assistance on the joint venture on the individual implementation steps necessary in Austria and to satisfy ASFINAG according to the tender agreement with the ARGE.
The most important goal for us must continue to be to put our customers and their needs at the centre. Only joint success strengthens both.