EurObserv'ER logo

Photovoltaic energy 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 2010 the share was 13,7%). 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: photovoltaic energy (PV)

The most important support mechanism is the Feed-in system regulated by the Conto Energia, which was upated and revised several times. Also numerous regional support schemes exist in Italy. A reduced VAT (10%) is applicable for PV plants and its components. The latest version (Conto Energia III) was adopted by decree by the Italian Government on 6 August 2010 and entered into force on 1 January 2011. Feed-in tariffs are valid for 20 years. An annual degression rate of 6% for rooftops ground mounted systems apply for 2012 and 2013. An annual degression rate of 2% applies for building integrated systems. Systems connected within a six month period until 30 June 2011 fall under the old feed-in tariff scheme.


Feed-in tariffs Conto Energia
 Grid connected between Jan -Apr 2011    
  roof-top-installation  ground mounted / other Building integrated
System size in kWp feed in tariff (in €/kWh) feed in tariff (in €/kWh) feed in tariff (in €/kWh)
1-3 kWp 0,402 0,362 0,44
3-20 kWp 0,377 0,339 0,44
20-200 kWp 0,358 0,321 0,40
200-1000 kWp 0,355 0,314 0,37
1000-5000 kWp 0,351 0,313 0,32
< 5000 kWp 0,333 0,297  








Feed-in tariffs Conto Energia
 Grid connected between May - Aug 2011
 
  roof-top-installation  ground mounted / other Building integrated
System size in kWp feed in tariff (in €/kWh) feed in tariff (in €/kWh) feed in tariff (in €/kWh)
1-3 kWp 0,391 0,347 0,44
3-20 kWp 0,360 0,322 0,44
20-200 kWp 0,341 0,303 0,40
200-1000 kWp 0,335 0,309 0,37
1000-5000 kWp 0,327 0,289 0,32
< 5000 kWp 0,311 0,275  

A registration template is available since 11 February 2011 from GSE.

Regarding the Green Certificate (GC) regime: plants becoming operational after 31 December 2007: electricity produced and fed into the grid by plants using renewable sources with an annual average capacity higher than 1MW are eligible for obtaining GCs for a period of 15 years. Starting from 1 January 2008 each GC represents 1 MWh (before this date, GCs were issued in units of 50 MWh). Electricity produced and fed into the grid by plants using renewable sources with an annual average capacity not higher than 1MW are eligible, as an alternative to the GCs regime indicated above and upon request of the producer, for a fixed incentive tariff which varies depending upon the renewable source used by the plant for a period of 15 years. The tariff for photovoltaic is subject to the incentive tariff provided for by the Solar Decree. Starting from 2008, producers will be entitled to receive a number of GCs equal to the amount of the power produced, multiplied by a coefficient which varies depending upon the renewable source used by the plant. For plants which became operational before December 31, 2007, the previous GCs regime will continue to be applied, except that each GC issued will be in respect of 1 MWh.

Future programme changes expected :

For photovoltaic energy, a new regulation will be issued on the 1st of June to ensure the sustainability of incentive costs and to grant a long-term development perspective. Next changes planned to the Conto Energia III in 2014. Intensive debates about the future feed-in tariffs and degressions. A cap on the PV market, as demanded by a government ministry, is apparently no longer on the agenda. The Environment Ministry, the Ministry for Economic Development and the sector association GIFI (Gruppo Imprese Fotovoltaiche Italiane) have postponed negotiations until April. The Green Certficate Regime is also under review.


Sources :

GSE http://www.gse.it

Conto Energia III : Incentivazione della produzione di energia elettrica mediante conversione fotovoltaica della fonte, DECRETO 6 agosto 2010  solare http://www.enerpoint.it/PDF/terzo-conto-energia.pdf (sourced March 2011)

 Conto Energia online http://www.conto-energia-online.it (sourced February 2011)

Guidelines for the authorization procedures of renewable power plants MD 10/9/2010 (sourced February 2011)

EurObserv'ER Photovoltaic Energy Barometers, April 2008, March 2009, April 2010, http://www.eurobserv-er.org

BSW-Solar 2011: Länderinfo Italien, Status 24 February 2011.

Photon International, January 2011, page 64-65 (Market Overview Italy)

PV Magazine 01/2011, page 42.

Sun and Wind Energy Magazine, 10. March 2011: http://www.sunwindenergy.com/swe/content/home/details.php?rub=solarstrom&id=310

Renewable Energy Fact Sheet Italy, http://ec.europa.eu/energy/energy_policy/facts_en.htm (sourced January 2008)

Decree on Solar Thermal Power in Italy, 30 April 2008, http://www.solarpaces.org/News/docs/Presentation%20STP%20%20Decree%20Italy.doc (sourced February 2009)

Ministry of Productive Activities, Report Of Italy Pursuant To Article 3, Paragraph 3, and Article 5, Paragraph 5, of Directive 2001/77/EC,  http://ec.europa.eu/energy/res/legislation/doc/electricity/member_states/it_2005_report_en.pdf (sourced February 2009)

Die Sorgen wachsen, Der italienische Einspeisetarif ist bedroht, außerdem macht eine neue Steuer Ärger, Photon, January 2009, http://www.photon.de/photon/pd-2009-01.pdf (sourced February 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: March 2011


This information canbe referenced without permission provided that the source is mentioned completely and correctly: 'Interactive EurObserv'ER Database, http://www.eurobserv-er.org (date of last update)'

Suggestions for improvements to the policy description can be sent to EurObserv'ER by e-mail: project@eurobserv-er.org

The EurObserv'ER barometer is a project supported by the European Commission within the DG ENER 'Intelligent Energy Europe' programme and by Ademe, the French Environment and Energy management Agency. The EurObserv'ER Barometer is the result of the investigation and research work of its authors. The European Commission is not responsible for any use that may be made of the information contained therein.