Renewable energy: how the “Fer X” decree rewrites the rules of incentives


Emma Potter

The recent development in the renewable energy sector in Italy is reflected in the proposal of new “Fer X” decreewhich aims to redefine the landscape of incentives for the production of energy from mature renewable sources.

This document, of crucial importance for the green industry, proposes updated feed-in tariffs for onshore photovoltaic and wind energy, laying the foundation for a more sustainable energy future less dependent on fossil fuels.

This initiative, still awaiting approval from Brussels for compatibility with state aid rules, represents a significant step forward in the Italian decarbonisation strategy and in the objective of increasing clean energy production, while sparking debates on the adequacy of proposed rates.

Details of the “Fer X” Decree

The draft “Fer

  • 85 euros per megawatt hour for the photovoltaic;
  • 80 euros per MWh forwind;
  • 10 euros per MWh for hydroelectric;
  • 100 euros per MWh for biogas;

applicable to systems with a power exceeding 1 megawatt.

With a duration of twenty years, these two-way contracts aim to ensure greater financial stability for new renewable energy projects, covering a total capacity of:

  • 45 Gigawatts for the photovoltaic;
  • 16.5 GW forwind;
  • 0.63 GW of hydroelectric;
  • 0.02 GW of biogas;

The deadline for the awarding of the auctions is set at 31 December 2028, and the affected plants must obtain all necessary authorizations and be completed within 21 months for solar and 34 months for wind from the awarding of the auction.

Criteria for access to incentives

To access the new incentives provided by the “Fer X” decree, renewable source plants must meet specific criteria, thus guaranteeing compliance with legislative and environmental requirements.

It is essential that every system with a power exceeding 1 MW has a qualifying qualification for construction and operation, including any concession titles. Also, you need to have a estimate for connection to the electricity grid already definitively accepted, ensuring compliance with performance standards and national and European regulations regarding environmental protection.

Another key requirement is the demonstration of financial solidity of the participating entity, through a declaration from a banking institution certifying the financial and economic capacity in relation to the extent of the intervention. Alternatively, the commitment of the institute itself to finance the intervention is valid, thus guaranteeing the economic feasibility of the projects.

These criteria are essential to ensure that only well-structured and sustainable projects can benefit from incentives, promoting the development of a robust and resilient renewables sector.

The reactions of the sector

Industry reaction to the tariffs proposed in the “Fer X” decree has been mixed. Elettricità Futura, which represents 70% of companies operating in the renewable energy sector in Italy, expressed some disappointment regarding the tariffs, considered the lowest in Europe.

Despite the appreciation for the adjustment of tariffs to inflation, the main concern is the economic sustainability of new green energy projects. Operational and investment costs, together with the cost of money and bureaucracy, make these tariffs insufficient to guarantee the construction of new plants in the current economic context, according to Agostino Re Rebaudengo, president of Elettricità Futura.

This feedback reflects the tension between the need to promote renewable energy and the economic challenges that industry operators face in the current market scenario.