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Policy on solid biomass in Italy

General
The European Directive 2001/77/EC (27 September 2001) demands Italy to aim for a RES-E share of 25% of gross electricity consumption by 2010. No  target exists for renewable heat in Italy. For biofuels, Italy’s Decree 128/2005 set a reference value of 1% by 2005, which is lower than the 2% reference value in the EU Directive. Main support mechanism for renewable electricity in Italy is the obligation on electricity generators to produce a certain amount of RES-E, based on Tradable Green Certificates. In 2006, the target percentage was 3.05%. In case of non-compliance, sanctions are foreseen, but enforcement in practice is considered difficult because of ambiguities in the legislation. Regional and local governments have introduced some measures to promote RES. These have taken the form of incentives for solar thermal heating and compulsory installation of solar panels in new or renovated buildings. On January the 1st of 2008, the law no. 244/2007, also known as the 2008 Budget Law (Budget Law), came into force. The Budget Law introduces many important changes affecting the renewables sector.

According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for Italy is 17% (in the year 2005 the share was 5.2%). The Directive has a mandatory 10 % target for transport to be achieved by all Member States, which refers to renewable sources as a whole, not biofuels alone.

Renewable energy projections according to the National Renewable Energy Action Plan for Italy
The National Renewable Energy Action Plan (NREAP) for Italy was submitted in August 2010. The target according to Annex I of Directive 2009/28/EC is 17% for the year 2020 and the projected NREAP share in that year exactly matches the target.  According to the projection, the most important contribution in the year 2020 is expected from biomass (renewable heating and cooling) (5670 ktoe, 25% of all renewable energy). Second important contribution is expected from hydropower (42.0 TWh or 3611 ktoe, 16% of all renewable energy). The third largest contribution is from renewable energy from heat pumps (2900 ktoe, 13% of all renewable energy). Wind power contributes with 12.7 GW (20.0 TWh) in the year 2020 (onshore wind 12.0 GW and 18.0 TWh, offshore wind 0.7 GW and 2.0 TWh). For solar photovoltaic the 2020 contribution is projected to be 8.0 GW (9.7 TWh). For solar thermal the 2020 contribution is projected to be 1586 ktoe. The two most important biofuels are projected to contribute 1880 ktoe (biodiesel) and 600 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 7.9 TWh (679 ktoe) and for biogas it is expected to be 6.0 TWh (518 ktoe). The consumption of renewable heat is expected to amount to 5254 ktoe for solid biomass and 266 ktoe for biogas.

Renewable electricity and heating: solid biomass
Various programmes have been launched in Italy nationally and regionally to promote the use of biomass as a renewable energy source. The Programma Nazionale Energia Rionnovabile da Biomasse was the first document to set guidelines for developing the energetic valorization of biomass in Italy. Other programmes such as the Programma Nazionale per la Valorizzazione della Biomasse Agricole e Forestali were later adopted. Those programmes aimed at reducing the use of fossil use by 2012 and to stimulate public and private initiatives for organizing the agro-energetic industries within a context of sustainable development.

The Finance Act 2008 includes new measures relating to the production of electricity from renewable energy sources, in two areas: a review of the green certificates system, applying to power plants producing 1MW or more, and the introduction of feed-in tariffs for small plants with a capacity under 1MW. The revisions concerning green certificates are twofold. First, the incentive period is raised to 15 years. Second, the number of certificates issued varies depending on the type of renewable source, according to a coefficient multiplicative energy produced. This coefficient is: 1 for wind plants, 1.1 for offshore wind, 0.9 for geothermal, 1.8 for tidal and wave, 1 for hydroelectric, 1.8 for biomass from short chain, 1.1 for other biomass, 0.8 for biogas. Small renewable energy power plants, producing up to 1 MW, can choose feed-in tariffs (that include the selling value) differentiated by source and supported for 15 years. The feed-in tariffs are: eurocents 20/kWh for geothermal plants, eurocents 34/kWh for tidal and wave, eurocents 22/kWh for hydroelectric, eurocents 30/kWh for biomass from short chain, eurocents 22/kWh for other biomass, eurocents18/kWh for biogas, eurocents 30/kWh for wind plants (up to 200 kW).

Tax cuts destined for biomass for household heating: The 2004 Budget law has extended for all of 2004 and 2005 the possibility to deduct, in ten years from one’s personal income tax, 36% of the amount spent on building renovation and the use of RES. 
 
Future programme changes expected
No information on future policy.

Sources

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources, http://ec.europa.eu/energy/renewables/transparency_platform_en.htm

International Energy Agency, Global Renewable Energy Policies and Measures Database, http://www.iea.org/Textbase/pm/grindex.aspx (sourced October 2009)

The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)

Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: December 2010


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