Commission approves Italian State aid scheme to support electricity production from renewable energy sources
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Italy notified the Commission of its intention to introduce a scheme to support the production of electricity from renewable energy sources.
The plants are expected to add a total of 4590 MW of renewable electricity capacity to the Italian electricity system
The scheme will support the construction of new plants running on innovative and not yet mature technologies, namely geothermal energy, offshore wind power floating or fixed, thermodynamic solar, floating solar, tidal, wave and other marine energy as well as on biogas and biomass.
The plants are expected to add a total of 4590 MW of renewable electricity capacity to the Italian electricity system.
Depending on the technology, the deadline for successful plants to enter into operation varies between 31 to 60 months.
The reference price for electricity will be calculated as the hourly zonal price
The projects will be selected through a transparent and non-discriminatory bidding process, where beneficiaries will bid on the incentive tariff (the strike price) needed to carry out each individual project.
The reference price for electricity will be calculated as the hourly zonal price, which is the electricity price at the time the energy is fed into the grid and in the market area where the plant is located.
The scheme will ensure long-term price stability for the renewable energy
However, when the reference price is above the strike price, the beneficiaries will have to pay the difference to the Italian authorities.
The scheme will ensure long-term price stability for the renewable energy producers by guaranteeing a minimum level of return, while at the same time ensuring that the beneficiaries will not be overcompensated for periods when the reference price is higher than the strike price. ■