With the resolution 457/2024/R/EFRthe ARERA (Regulatory Authority for Energy, Networks and the Environment) has defined the first provisions for a gradual exit from the on-site exchange regime.
This regime, active in Italy for many years, has allowed electricity producers to use the energy injected into the grid by compensating it with that withdrawn, thus encouraging the spread of renewable energy and cogeneration plants. The need for a transition towards dedicated retreat and other alternative methods has emerged to ensure more sustainable and coordinated regulation with recent European directives.
How will this transition happen? What are the implications for owners of net metering systems?
Let’s discover together the details of the new regulation and what it means for the future of the energy sector in Italy.
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The rules underlying the deliberation
Resolution 457/2024/R/EFR is based on a series of European and national regulations and directives that aim to optimize energy production and distribution in Italy. Among the main regulatory references are EU Directive 2018/2001, EU Directive 2019/944 and the most recent legislative decree 181/2023, converted into law in February 2024, which outlined the criteria for the gradual overcoming of the exchange on site.
The objective of these regulations is to encourage sustainable energy production and more responsible consumption, in line with the European Union’s energy transition plans.
The regulation of on-site metering, introduced in past years to encourage renewable energy, has reached the limit of effectiveness in many configurations, paving the way for new methods more suited to today’s market and technologies.
In particular, recent legislation establishes that from December 31, 2024 plants will no longer be able to automatically renew on-site exchange agreements and will gradually be incentivized to migrate towards the dedicated collection regime.
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The mechanism of gradual exit from On-Site Exchange
The resolution establishes that all on-site exchange systems with active agreements for over fifteen years they will not be able to renew their agreement beyond 31 December 2024.
To ensure a seamless transition, ARERA has defined a process in which the owners of these plants will be able to access the regime dedicated retreatwhich will allow the continued sale of electricity produced on the network through the GSE (Energy Services Manager).
The exit mechanism provides for differentiated treatment based on power of the system and on the date of first access to the on-site metering regime, favoring the exit of older or more powerful plants. Furthermore, the GSE will have to activate specific communication plans to inform all the operators involved and facilitate the transition, providing precise indications on the methods and timing for joining the dedicated retreat.
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The dedicated retreat: a new opportunity for producers
The dedicated retreat It presents itself as a more modern and simplified solution compared to on-site exchange. This regime, governed by resolution 280/07, allows energy producers to sell the energy fed into the grid to the GSE, which is subsequently valued on the energy market.
This system allows producers to receive compensation based on hourly zonal pricevariable depending on the demand and supply of energy in the specific geographical area. Dedicated collection also represents an advantage for small producers, thanks to safer and more predictable market conditions.
For example, starting from 2024, the GSE will provide the economic compensation on a basis semi-annually for systems up to 20 kW of power, using average market prices that differentiate between technologies and type of system. This solution is designed to simplify compensation management and improve the economic stability of smaller producers.
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The timing and role of the GSE in the transition
To ensure a smooth transition from on-site exchange to dedicated collection, the GSE will have a central role in the management of expiring agreements. Starting from 1 January 2025, the GSE will automatically activate the dedicated withdrawal for all those plants which, having reached the fifteen-year duration of the agreement, have not requested a change in the dispatching contract by 10 December 2024.
This automation was introduced to avoid interruptions in the valorisation of the energy fed into the grid and to ensure continuity for producers who have not made alternative choices.
Furthermore, the GSE has foreseen a period of approx nine months for the development of a new IT portal that will facilitate the management of dedicated retreat agreements. This digital system will be key to addressing the large number of plants expected to migrate from net metering, improving management efficiency and simplifying operations for producers.
