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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 Heating and Cooling: solar thermal
The situation of public subsidies for solar thermal has improved a lot during the last few years. Especially, the role of the national Ministry of Environment has been decisive for this improvement. As per the Italian government law vide article 1 dated 27 December 2006, No. 296, good incentives are available to private individuals, home-owners and companies. The decree prescribes that at least 50% of the annual domestic hot water demand must be covered by renewable energy sources, whereas in the city centres with historical value the share is reduced to 20%.

Anyone, who decides on solar thermal systems for heating either sanitary water or to provide backup heating, not only, can drastically reduce their energy costs, but also deduct up to 55 percent of installation and initial costs for the system from taxes over a period of three years. It is, however, important that the future operator of a system chooses the right product at the very start, as the incentives are only accorded to systems whose manufacturers provide a five-year guarantee on their collectors and boilers certified according to EN 12975 and EN 12976, as well as provide a two-year guarantee for the incorporated electrical and electronic components. Furthermore, the system must be installed according to regulations.

Since the year 2000 a reduced VAT rate of 10% instead of 20% is applied by most suppliers for solar heating products. Besides the national programmes, several Italian regions have already granted subsidies for solar thermal plants. Since January 2002 a programme of the national Ministry of Environment, offered a 30% subsidy to public building owners and municipal gas distributors for investments in solar heating systems.

The Italian government decision to increase the tax deduction to 55% for private individuals (vs. 36% before this) will certainly give an additional boost to the solar thermal market growth in Italy. It is further to be noted that with reference to the Position paper of Italian government relevant to the document entitled, “Energy: themes and challenge for Europe and Italy” (September 10, 2007) annual installed capacity of solar thermal (nearly 3.8 x 106 m2) and an overall 17.4 x 106 m2 by the year 2020 (equivalent to 1.12 MTOE) could be expected. The strong growth of the Italian market will also influence the industrial growth of the country. According to new study financed by the Solarexpo research centre, sector turnover at €78 million in 2006 will be € 120 million for the year 2007.

Although the national law requiring the use of solar thermal has still not been implemented in most municipalities, Italy has seen a strong rise in the demand for solar thermal heating solutions. But with just 2.9 kWth per 1000 capita – exactly as France – Italy remains one of the most promising markets for strong growth in the coming years.

Decree 115/08 (30/05/2008) makes it easier to install modules as they now fall into the category of ordinary maintenance, only a communication to the municipality is needed. It is not clear if this is also valid for natural convection solar thermal or for installations on flat roofs, because these are not totally integrated into the building. The hope is that the local legislation will provide further clarification.

Further annex III of the decree should give application to the decrees 192 and 311. It gives technical and normative references to help determine primary energy needs and performances for winter climatisation and production of hot water when renewable energy is used. To consider the obligation normative on a national level, now only control and sanctioning mechanisms are still missing.

The new financial decree 185/08 (Decretto legge 185/08) that became law on January 27, 2009 has maintained the tax deductions of 55%. The tax reduction will be deductible over 5 years. Initial fears aroused by the new legislation  for the development of the solar thermal sector have been dispelled. Originally the act was meant to modify the 55% tax reduction rate and cap the tax reduction fund at 80-100 million euros. Finally the act was adopted by Parliament on 14 January 2009, after several adjustments had been made to the figures. The 55% tax reduction on the total cost of the solar system was finally retained and carries on from 1 January 2009, while the total tax reduction fund cap was abolished.  

According to ENEA (Italian National Agency for New Technologies, Energy and the Environment) of the requests for tax deductions in 2007 20% related to solar thermal heating (106,000) and in 2008 25% (130,000). This makes a total of approximately 220,000m2 for the year 2008-2009. In 2010 the 55% tax concession was uphold against the Governments plan to cancel this subsidy scheme.

Future programme changes expected
No information on future policy.

Sources


D’Alessandris, S., Verga, V., Obbligo Solare; Casa Energia 1/2009, http://assolterm.it/assolterm/index.php?option=com_docman&task=doc_download&gid=126&Itemid=198

Verga, V., Il solare termico in Italia: quadro normative e di mercato, ISES Italia, Ilsoleatrecentosessantagradi, num 11, Dicembre 2008, http://assolterm.it/assolterm/index.php?option=com_docman&task=doc_download&gid=162&Itemid=198

EurObserv'ER Solar Thermal barometer, June 2009, http://www.eurobserv-er.org/pdf/baro191.asp

EurObserv'ER Solar Thermal barometer, May 2010, http://www.eurobserv-er.org/pdf/baro197.asp

Interactive EurObserv’ER Database, http://www.eurobserv-er.org (status 2007)

ESTIF 2007: http://www.estif.org/solarkeymark/skii/results/countryreports/final/ITALY-FINAL.pdf, status Italy, December 2007

ESTIF 2008 : http://www.estif.org/fileadmin/downloads/Solar_thermal_markets_in_Europe_2007.pdf, June 2008

ESTIF 2010: Solar Thermal Markets in Europe, Trends and Market Statistics 2009, June 2010, http://www.estif.org/fileadmin/estif/content/market_data/downloads/2009%20solar_thermal_markets.pdf, (sourced December 2010)

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)

Sun and Wind Energy 4/2011, pages 52-55.

RES Legal http://www.res-legal.de

Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: April  2011



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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.