On 3 March 2011 the Italian Government passed the Legislative Decree (the "Decree") implementing the Renewable Energy Directive 2009/28/EC on the promotion of the use of energy from renewable sources. The Decree will come into force once published in the Official Gazette (the "Effective Date").

The Decree deals with a broad range of matters (i.e. administrative permits, grid improvements, incentives, statistical transfers, control and fines).
A focus on clean-energy incentives follows:

Photovoltaic (PV):

  • incentive tariffs set out in the third Conto Energia (ministerial Decree, 6 August 2010) will be granted to PV plants starting operations by 31 May 2011
     
  • the Minister of Economic Development in agreement with the Minister of the Environment shall adopt, by 30 April 2011, a further decree setting out new incentives - presumably lower than those currently applicable - for PV plants starting operations after 31 May 2011
     
  • with effect from the Effective Date, ground based plants will be eligible for incentive tariffs provided that:

    a. the capacity of the plant shall not exceed 1MW and, in the event that more than one plant is installed on the same owner's land, each plant has to be installed at a distance of 2KM one another and

    b. the concerned plant(s) shall not cover more than 10% of the land surface available.

    The limits under (a) and (b) above shall not apply if:
     
  • the land has been abandoned for 5 years or
     
  • the individual plant has been authorised prior to, or on, the Effective Date or
     
  • the relevant authorisation has been filed with the competent authorities by 1 January 2011, provided the plant becomes operational within 1 year following the Effective Date.

Renewable energy sources other than solar:

  • Starting from 1 January 2013 the renewable obligation (i.e. the obligation to provide the competent authorities with green certificates pursuant to article 11 of Legislative Decree no. 79/1999) will be gradually reduced to zero in 2015. Until 2015 the State Energy Management Agency, known as GSE, is still required to purchase excess green certificates on the market at a price 22% lower than the one set out under article 2, para. 148 of Law No. 24, 24 December 2007.
     
  • with effect from 1 January 2013, renewable energy (other than solar) production will benefit from:

c. fixed incentive tariffs, if plant capacity is lower than 5MW or

d. incentives awarded through reverse auctions (managed by GSE), if plant capacity exceeds 5MW. In any event, the bidding procedure shall provide for a minimum incentive amount which is determined on the basis of investment costs.

Within 6 months following the Effective Date, the Minister of the Economic Development in agreement with the Minister of the Environment shall adopt a decree aimed at regulating all the aspects concerning the granting of the incentives stated at (c) and (d) above.
 For further information or advice, please contact:

Michelle Thomas
Partner, Head of clean energy and sustainability
Tel: 0845 498 7553
michellethomas@eversheds.com

Guido Galeotti
Counsel in renewable energy and environmental law
Tel: +39 02 89 287 706
 guidogaleotti@eversheds.it

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.