Page 17 - Solar

Solar Power in Italy

Summary

I

n 2009, Italy became the second largest PV market in the world after Germany, installing 770MW

of new solar capacity in that year. In 2010 this exponential growth trend continued with 1,850MW

of new PV capacity being installed, substantially exceeding industry estimates. With substantial

Feed-in tariffs and incentives available, Italy is currently attracting major investment in the PV

market and Gestore dei Servizi Energetici, an agency that promotes, supports and develops

renewable energy in Italy estimates that installed capacity could rise to 7,000MW in 2011.

Italian PV market 2006-2011
electricity generated. For plants that will have entered into
operation between 1 January 2013 and 31 December 8000
PV Installed (MW) Cumulative Installations (MW)
2016, Conto Energia 4 provides for a Feed-in tariff 7000

regime for photovoltaic electricity injected into the grid 6000
(“Feed-in Tariffs”). For a comparison of the two regimes
5000
please refer to the paragraph “Premium Tariffs vs. Feed- 4000
in Tariffs” set forth below.
3000
The Premium Tariffs and the Feed-in Tariffs are paid per
2000
kWh for 20 years (plus the time periods when the plants 1000

are curtailed due to force majeure events or grid failure) 0
and the relevant level of Euro/kWh is fixed and not 2006 2007
2008 2009
2010 2011
WARNING: These figures are estimates only. They are
subject to indexation or any other revision of the price
not a reliable guide to future performance of your
during the entire 20 years period. The Premium Tariffs and investment.
the Feed-in Tariffs are granted by the Italian regulatory
Italian and EU Legislation
body, GSE – Gestore dei Servizi Energetici S.p.A. (“GSE”),

at the level applicable when a plant enters into operation Italy has defined its commitment to the development of
(the general rule is that the specific monetary level is fixed
the PV industry through four Governmental decrees. The
only upon entry into operation at the tariff level in force
first three emanated in July 2005, February 2006 and July

in that specific calendar period).
2010 and have defined the criteria for promoting the

This continuing support from the Italian Government to production of electricity from Photovoltaics and set out
the simplification of the process and to incentives makes attractive Feed-in tariffs and incentives which galvanised

the Italian market a very attractive prospect for investors.
the Italian PV market.

The Fourth Conto Energia was revealed in May 2011 A new edition of the decree was published in May 2011.

confirming intentions to reduce the Feed-in tariff for solar Conto Energia 4 provides for incentives for plants that will
farms connected to the grid after August 2011.
have entered into operation after 1 June 2011 which

Once Italy reaches its new national objective of 3GW it is generate electricity using photovoltaic technologies. For

expected that incentives for investment in solar energy plants that will have entered into operation between
1 June 2011 and 31 December 2012, Conto Energia 4
will be significantly reduced.
consists of premium prices (“Premium Tariffs”) for the

‘
We must probably say goodbye to the possibility of nuclear power
’
stations and we must strongly commit ourselves to renewable energy

June 14 2011, Silvio Berlusconi, Italian Prime Minister, reflects on a referendum where 94% of Italian voters

opposed the government's plans to resume nuclear power generation.
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