Italy introduces new renewable energy incentive scheme

The Italian government has approved legislation for a new renewable energy incentive scheme that will see subsidy cuts for solar power.

There is also included a competitive auction system for feed-in tariffs (FIT) for renewable energy installations above 5 MW, according to Industrial Info.

The new law will kick in first for solar photovoltaic (PV) power projects.

Solar power subsidies in Italy will be cut by about one-third once total spending on existing and new equipment this year has reached €6bn ($7.9bn), which is expected to happen between July and October. The cuts will vary from 32-36 per cent, depending on installation size.

Subsidies for large ground-mounted installations will go down by about 32 per cent from €236 ($310) per megawatt-hour (MWh) to €161 ($212) per MWh. The feed-in tariff for small installations will fall by 36.4% from €352 ($463) per MWh to €237 ($312) per MWh.

The decree also introduces an annual cap of €6.5 bn ($8.55 bn) for subsidies spent on existing and new installations, and a 2-3 GW annual cap for capacity with all medium-sized projects forced to go through a six-monthly registry that will take into account new price dynamics.

The government predicts that the subsidies will not be needed after 2015 when solar power is likely to reach cost parity with other energy sources used for electricity production.

The new legislation is due to come into force on 1 January 2013 for other renewables technologies, including wind, biomass and geothermal. The ministry has hypothesized that a 10 MW onshore windfarm could receive an incentive of roughly €124 ($163) per MWh with the new scheme, compared with a current level of about €148 ($195) per MWh.

Despite incentive cuts, the government said Italy will exceed 2020 targets. Indeed, Italy plans to raise its target for electricity from renewable energy sources to 32-35 per cent from a current 26 per cent. The government argues the new system is simply more economically sustainable.

For more renewable power news

Follow Power Engineering International on Twitter




Related Articles

A winning formula for waste to energy power plants

For most power station operators the idea of using fuel that is not just free, but that they are actually getting paid to take, is probably something of an alien concept. But there is one generating industry where just suc...

Five major energy shifts predicted for global power market

Global power generation will experience five dominant trends over the next 25 years, putting unprecedented pressure on energy companies, utilities and policy-makers, according to Bloomberg New Energy Finance.

Latest Articles
Spain's PS1 and PS2 CSP plants

China begins work on its largest solar power plant

China has begun construction work on its first large-scale solar power plant to be operated commercially, located in the Gobi desert.

GE to build 190 MW gas-fired CHP plant in Germany

GE and general contractor Kraftanlagen München  are set to build a 190 MWe/192 MWth gas-fired combined heat and power plant for German municipal utility Stadtwerke Kiel.  


Editor's Picks

EU flag

Luxembourg government working on Hinkley Point C legal objection

As promised earlier this year, the Luxembourg government intends to file a lawsuit against the European Commission decisio...
David Cameron and Werner Faymann

Nuclear chief says Austrian legal action ‘damaging to efforts to address climate change’

The Austrian government has finally filed its legal challenge against the deal that facilitates subsidies for a nuclear po...
 Schleswig-Holstein Climate Minister Robert Habeck

Federal states applying pressure on Merkel government over subsidies to nuclear

States with green party representation in Germany are calling on the German government to take action against the prospect...
Mike Baston of Euracoal

Future global power generation mix – the coal-fired power perspective

In our inaugural PEi Google Hangout, Mike Bostan, Policy Officer at Euracoal tells Power Engineering International's Diarm...
Faymann

Austrian PM confirms lawsuit against Hinkley decision ready in weeks

Austrian Chancellor Werner Faymann has confirmed that his country will be registering its lawsuit against the European Com...

Editorial Guides

Lubrication Challenges for the Biogas Industry in 2015

The biogas industry is growing in importance as the world continues to look for alternative, clean energy sources. However...

Maximising Power Plant Efficiency

The need for power plants to operate at maximum efficiency and flexibility while cutting emissions is greater than ever be...

How to cut your OPEX

How to cut your OPEX In a constantly evolving electricity market, factors such as over capacity and low coal costs can pu...

Buyers Guide Companies

ComRent International LLC

Offers rentals, sales, and services of load banks for testing generators...

Advanced Energy

Advanced Energy is a global leader in innovative power and control techn...

Fluid Energy Controls Inc

ACOEM AB

ACOEM is a supplier of Fixturlaser's innovative and user-friendly equipm...

CCI Thermal Technologies Inc

A leader in the development and manufacturing of industrial heating and ...

Buyers Guide Products

Bore Measurement

Typical applications are full bore measure...

Fixturlaser NXA Pro

This laser alignment system features many ...

Air Filtration

Braden filtration offers a wide range of f...

Exhaust Systems

Leader in Exhaust Bypass, Simple Cycle, Ex...

RETROFIT

Braden's retrofit strengths are divided in...

Power Engineering International

Whitepapers

Bridging the Power Gap in Africa: Testing options to manage constrained short to medium term system operations

Around the world, existing power systems face increasingly constrained operations in the short to medium term with available ageing generation capacity.  In this paper, PLEXOS® has been used t...

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New challenges and opportunities are continually appearing thanks to dramatic developments in technology...

The bottom line: engine oil impact on engine reliability

A reliable and well-maintained gas-powered engine performs consistently and continuously, which can lead to a healthier bottom line for plant operators. There is a raised awareness around the need ...

Understanding Moisture Dynamics in Power Transformers

In this webinar recording "Moisture Dynamics in Power Transformers" (held originally in September 23, 2014) you will have a chance to learn about the phenomena and its importance to your ...

Latest Digital Edition

  Power
  Engineering
  International
Look Inside >
Cover
Current Issue

Article Archives for Power Engineering International Magazine