Clifford Chance

The new incentive scheme for renewable energy sources other than photovoltaic

4 July 2016

Following clearance from the EU Commission, on 30 June 2016 the new decree for allocation of incentives to wind farms (on-shore and off-shore), hydro, biomass, biogas, CSP plants and other non-photovoltaic renewable energy sources for the year 2016 has been published on the Italian Official Gazette (the "RES Decree").

The RES Decree has maintained the overall structure for allocation of the incentives of the Ministerial Decree of 6 July 2012 ("Decree 2012"), which has allocated incentives to renewable source plants until 2015.

Competitive reverse auctions will allocate incentives to renewable plants of capacity higher than 5 MW, while registration procedure mechanisms will allocate incentives for plant below the 5 MW threshold.

The 5.8 billion cap on yearly costs for incentives has been confirmed, although new calculation procedures of the cap are likely to reduce the risk of this cap being reached.

The RES Decree has set one sole tender for auction and registration procedure, to be published by the GSE within the final term of 20 August 2016.

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