RE Italy

Italy (excerpt from EPIA publication download below)

Besides high sun irradiation, Italy offers a very attractive support scheme, mixing net-metering and a well segmented premium FiT. In January 2009, the Italian government extended the net-metering  ‘Scambio sul posto’) to PV systems up to 200 kW. This means the PV system owner can valorise the electricity he produces himself at the same price as the electricity he consumes traditionally from the grid. If, over a time period, there is an excess of electricity fed into the grid, the PV system owner gets a credit (unlimited in time) for the value of the excess of electricity. This measure is very attractive for the residential, public and commercial sectors. On top of the valorisation of the electricity itself, the PV system owner also gets a premium FiT on the total electricity produced by the PV system. Under the present FiT scheme valid until the end of 2010, EPIA expects continuous growth of the Italian PV market. In the Policy-Driven scenario, EPIA expects the Italian PV market to reach the
GW scale by 2011, assuming that the administrative procedures will be harmonised at regional level, that the net-metering will have a strong impact on the demand for PV systems and that the new FiT will have no cap limitation and will remain consistent with the existing one.

Renewable Energy Policy in Italy

 Most important Renewable Energy Source (RES) in Italy is hydropower, contributing to 16.6% of total gross electricity production of the country. Italy has also large geothermal resources, both high and low temperature: it is the most important producer of geothermal electricity in Europe. Despite strong growth in sectors such as onshore wind, biogas and biodiesel, Italy is far from the targets. Firstly, there is a large element of uncertainty due to political changes and ambiguities in current policy design. Secondly, there are administrative constraints such as complex authorization procedures at local level. Thirdly, there are financial barriers such as high grid connection costs. The Italian government is working out the details of more ambitious support mechanisms for the development and use of RES. Italy may be on the verge of moving towards a feed-in tariff-based renewable energy rebate scheme, similar to successful models implemented in Germany and Spain.

Italian Government is developing a national building law that will ensure that solar thermal installations are installed in new and refurbished buildings and will assist in increasing the market penetration for RES-H&C technologies. The Italian nuclear power referendum of November 1987 rejected the expansion of the country's nuclear power industry by the construction of new nuclear power plants. Subsequently, the Italian government decided in 1988 to phase out existing plants.

Key Figures

• The share of RES in total primary energy consumption was of 6.82% in 2006.
• The share of RES in the gross final energy consumption was 5.2 % in 2005.
• The share of RES in the gross electricity production was 16.6% in 2006 with 52.272 GW/h, conventional energy produced 261.851 GW/h.
• The share of biofuels in the transport sector in 2006 was 0.52%.
• Italy energy dependence on imports amounts to 86.8% in 2005

Technology specific figures Hydropower represents one of the most important energy resources in the country. It represents 24% of the total installed capacity in Italy supplying 16% of gross electricity production.

Biomass energy accounts for 25% of all primary energy from RES (excluding plants fuelled also from waste), in 2006 they were 2.565 plants in operation producing 4.786 (GWh), with an installed capacity of 2.469, 881 MW.

Geothermal energy is also important in Italy, representing 2% of the total gross electricity production.
Wind energy reached 2.100 MW of installed capacity at the end of 2006.

Tradable Green Certificates and FIT

Tradable Green Certificates (which are tradable commodities proving that certain electricity is generated using RES) are used to fulfil the RES-e obligation. The cumulated average price of the green certificates for 2006, updated as of 03/01/2007, is of 13,91 EUR cent/kWh.

A new Feed in Tariff System, The Financial law 2008 (LEGGE 24 December 2007, n. 244.) changed the green certificate system in many parts and, and together with the green certificate system, it has established a new feed-in tariff system for small (P <1 MW) renewable plants (except PV- have their own feed in tariff explained before) but these feed in tariff only applies for plants that will start producing from the 1st January 2008.

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