29 | 06 | 16 market highlights

HARD-EARNED DECREE FOR NO-PV RES FINALLY PUBLISHED

The 18-months awaited decree for electrical non-PV renewables has finally been published in the Official Gazette (DM 23 June 2016) and will enter in force tomorrow, the 30th of June. The decree will provide incentives for up to 1,4 GW of new power that will be tendered in public auctions within August 2016. The decree will remain in force until either 1st December 2016 or when the annual cost for incentivation will exceed the 5,8 billion€ threshold. As positive, an extension of validity for smaller plants (with direct access) has been introduced, postponing termination to December 1st 2017 (in case of non-exceedance of aforementioned annual cost).

GSE will tender some 860 MW of onshore wind power, 140 MW of power from biomass/biogas, 120 MW from concentrating solar power and 80 MW from hydropower. A new set of feed-in tariffs for distributed generation plants has been defined with an average decrease of about 10-20%. Plus, a new deadline has been introduced: new tariffs do not apply to plants that will be commissioned within one year from the enter in force of the decree, either through direct access and GSE registry.

If in one hand the new decree will preserve ongoing investments (mostly small plants) and will provide some new opportunities (onshore wind and CSP), one the other hand, the very short duration of the incentive scheme is missing to provide long term signals for investor in the renewable energy Italian sector.