How milestone-based co-development works
In a co-development, the developer brings local knowledge, technical capability and relationships with landowners, municipalities and the network operator. The investor brings capital and, often, its technical and legal standards. Instead of paying for a finished project, the investor pays in instalments as the project advances.
This approach is the core of the greenfield stage on Pipeline.Solar. It allows investors to build projects tailored to their requirements, with development risk shared and measured at each step.
Typical milestones
Milestones vary by project, but in Italian solar development the following sequence is common:
- Land rights: an option or preliminary agreement for the surface right (DDS) or purchase of the land.
- Accepted STMG: the grid connection offer from Terna or the distributor, accepted within the deadlines. See projects with an accepted STMG.
- Permit filed: submission of the PAS or AU application, with the related studies.
- Permit obtained: the authorisation title, which together with grid and land usually defines the project as RTB.
Some agreements add intermediate steps, such as the completion of environmental studies or the authorisation of grid works. Our guide to development stages describes the documents at each step.
Payment conditions
A development services agreement typically defines, for each milestone:
- the objective evidence that the milestone has been reached, for example the accepted STMG or the registered land deed;
- the amount due or the method to calculate it, often linked to the capacity actually achieved;
- the deadline within which the milestone should be reached;
- what happens if the outcome differs from the plan, such as a lower authorised capacity or a different connection point.
Pipeline.Solar does not indicate amounts. Development costs depend on factors such as site complexity, connection level, permitting regime and the area classification under the rules on suitable areas. Each teaser includes a development cost field, provided by the project owner.
Exclusivity and control
Investors financing a co-development usually ask for exclusivity on the projects being developed and for a right to acquire them at the end of the process. Typical provisions cover:
- exclusivity of the developer on the specific sites for the duration of the agreement;
- reporting obligations and access to documents during development;
- the investor's right to approve key choices, such as the connection solution or the permitting route;
- ownership of the project vehicle and of the documents produced.
Exit clauses
Not every greenfield project reaches RTB. A well drafted agreement defines what happens when a milestone is not reached: the right of the investor to stop financing, the treatment of amounts already paid, the possibility for the developer to propose the project to others, and the transfer or return of documents and rights. Clear exit rules protect both parties and make the relationship sustainable over time.
Contracts are negotiated directly between investor and developer, with their own advisors. For a broader view of the developer side, see renewable project development in Italy.
Development services agreement: other key clauses
Beyond milestones and exits, a development services agreement usually covers the budget of development costs and who bears unexpected expenses, the standards to which studies and designs must be prepared, the treatment of changes in the rules during development, and confidentiality. When the investor intends to build with a specific technology, such as agrivoltaics or battery storage, the agreement may also define technical requirements that the developer must respect from the start.
Find developers for co-development
Contact us via WhatsApp or the investor access form. After the introductory call, in your reserved area you select greenfield among the stages and co-development among the structures, and set capacity range, regions and technologies. Describe your preferred milestones during the call, so the staff can consider them when screening opportunities from the network.
Opportunities depend on the projects available at the time. Set your search criteria.
Frequently asked questions
Who owns the project during co-development?
It depends on the agreement. The project may be held by the developer, by a vehicle owned by the investor, or by a joint vehicle. This is defined in the contract.
Can milestone payments be linked to capacity?
Often yes. Payments may be calculated on the capacity actually reached at each milestone, so that a smaller project leads to lower payments.
What happens if the permit is refused?
The consequences are set out in the exit clauses: usually the investor stops further payments and the parties regulate amounts already paid and the documents produced.
Do I need a technical team to co-develop?
It helps, but many investors rely on external advisors to review documents at each milestone. Due diligence remains the investor's responsibility.