The European Commission has approved a €1.7 billion Italian scheme made available in part through the Recovery and Resilience Facility (‘RRF') to support agrivoltaic installations.
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The scheme supports the construction and operation in Italy of new agrivoltaic plants for a total capacity of 1.04 GW and an electricity production of at least 1300 GWh/year.
Agrivoltaic systems allow for the simultaneous use of land both to produce photovoltaic energy through the installation of solar panels and to carry out agricultural activities.
Under the scheme, the aid will be granted to agricultural producers, cumulatively, in the form of:
Investment grants, with a total budget of €1.1 billion, covering up to 40% of the eligible investment costs;
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Incentive tariffs, with an estimated budget of €560 million, to be paid during the operational phase of the projects, for a 20 year period.
These tariffs will be determined through a competitive bidding process on a pay-as-bid rule and will take the form of two way contracts for difference. The support will cover the difference between the incentive tariffs and the energy prices.
In case of high energy prices, a claw back mechanism is in place so that any amount exceeding the incentive tariffs will be paid back.
The projects will be selected through a transparent and non-discriminatory competitive bidding process, where beneficiaries will compete for the lowest amount of the incentive tariff needed for an individual project to go ahead.
In order to benefit from the scheme, beneficiaries must become operational before 30 June 2026.
The Commission found that:
The scheme facilitates the development of an economic activity, in particular the production of renewable electricity from agrivoltaic installations.
The measure is necessary and appropriate for Italy to meet the European and national environmental targets. Moreover, it is proportionate as the aid is limited to the minimum necessary to trigger the investments. In addition, necessary safeguards are in place, including a competitive bidding process for awarding the aid and a claw-back mechanism in case of energy price increases.
The measure has an incentive effect, as the beneficiaries would not carry out the relevant investments without the aid.
The aid brings about positive effects, in particular on the environment, in line with the European Green Deal, that outweigh any possible negative effects in terms of distortions to competition. On this basis, the Commission approved the Italian scheme under EU State aid rules. ■