Transitional RES X: the renewable technologies affected
The Minister of the Environment and Energy Security, Gilberto Pichettodefined the European Commission’s green light as a fundamental step for the country’s innovation and energy security. This decree allows us to reduce energy dependence on foreign countries, fully exploiting the potential of Italian renewable energy.
The provision supports several renewable technologies, including:
- photovoltaic
- wind power
- hydroelectric
- residual gases deriving from purification processes
The objective is to encourage the construction of new plants with an overall capacity of 17.65 GWdivided between systems of dimensions up to 1 megawatt and those of higher power.
The text of the decree is now awaiting registration at the Court of Auditors.
An endowment of 9.7 billion euros
The European Commission has approved an Italian state aid scheme of an estimated value of 9.7 billion euros. This scheme was created to support the production of electricity from renewable sources, accelerating the country’s ecological transition.
The approval falls within the temporary crisis and transition framework for State aid, adopted on 9 March 2023.
These funds are intended for the construction of onshore wind, solar photovoltaic, hydroelectric and waste gas purification energy production plants. The systems must come into operation by 36 months from the granting of aid.
How aid will be provided
The aid will be granted through a transparent and non-discriminatory tender procedure. The beneficiaries will have to submit aoffer relating to the incentive rate necessary for each project.
The help will take the form of a variable payment through a two-way contract for difference for each kWh of energy produced and injected into the grid.
The rate will be guaranteed for 20 years.
The incentive tariff mechanism
In the event of a forced reduction in production or zero or negative prices on the market, the incentive tariff will be applied to potential production instead of the actual one.
Only 95% of the electricity produced by each beneficiary, leaving the remaining 5% exposed to market risk.
The plants with a capacity of less than 1 MW will access the system directly with an exercise price set by theARERA.
The European context and compliance with EU rules
The European Commission has verified that the Italian regime respects the conditions established in the temporary crisis and transition framework.
In particular:
- the aid will be granted on the basis of a regime including volume and budget estimates;
- the amount of the aid will be determined through an open, clear, transparent and non-discriminatory competitive tendering procedure;
- the aid will be granted before 31 December 2025.
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