Robert Rand, BURN Editor
Here’s a story about some odd bedfellows: wind mills, solar panels, and the Mafia.
First, some background. Renewable energy is a pretty big deal in Italy. The country ranks third among the G20 – the world’s top industrialized nations — with respect to percentage of electricity deriving from green resources. In 2011, 6.2% of Italy’s overall energy use came from solar, wind, geothermal, tidal and wave. The U.S. ranked seventh, at 2.7 percent.
According to Invitalia, the Italian government’s agency for investments and economic development, a favorable climate is responsible for boosting renewables. Italy is blessed with ample sunshine and abundant breezes.
Ground zero is the island off the toe of Italy’s boot. That’s Sicily, and it has more sun and wind than any other region of the country. According to ENEL, Italy’s largest utility, the world’s first solar plant was built in Sicily in 1981. Sicily now houses more than 8000 solar facilities. And it is home to thirty wind farms.
“When it rains it pours,” goes the cliché. But in Italy, there’s another meteorological maxim, reserved for renewables: Where the sun really shines and the wind really blows, billions of dollars of government funding will follow. That has made solar and wind lucrative businesses, a magnet for the Sicilian mob.
Teresa Maria Principato, a prosecutor with Sicily’s anti-mafia squad, summed up the problem for The Washington Post earlier this year:
The Cosa Nostra is adapting, acquiring more advanced knowledge in new areas like renewable energy that have become more profitable because of government subsidies. It is casting a shadow over our renewables industry.
Here’s how the Mafia manipulates the renewables industry. A solar company trying to tap into those generous government subsidies will invariably bump up against Italy’s most bountiful natural resource — a mountain of bureaucratic red tape.
The mafia provides “facilitators” to speed up the process, and delivers the goods in a way that only the Mafia can. The fees it demands are in the hundreds of thousands of dollars per job. (One researcher put it at $520,000 per megawatt.) The mob also forces companies to hire Cosa Nostra contractors and to launder Cosa Nostra cash.
“Sicily is dotted with these giant windmills and solar panels, all doing nothing but laundering mob money,” said Giacomo Di Girolamo, a journalist who writes on organized crime, in The Mirror Online.
A few weeks ago, in early April, the Italian police struck back, seizing more than 1.3 billion Euro (about $1.7 billion) in assets from Vito Nicastri, a Sicilian green energy business magnate believed to be a mafia frontman. Nicastri controls one of the largest wind and solar conglomerates in Italy. His nickname is “Il Signore del Vento” – Lord of the Wind.
The confiscated assets include 43 wind and solar energy companies, plus numerous bank accounts, properties, investment funds, credit cards, cars and boats. It is the biggest ever seizure of mafia holdings, and testament to the breadth of Mafia involvement in renewables.
Nicastri is now under surveillance and has been told to stay put his Sicilian home town. If Nicastri is ever arrested, his fingerprints presumably will be taken with green ink.