A draft decree covering incentives for wind, hydroelectric and biomass power — that could be finalised in February — foresees even worse conditions for the industry than those planned by Italy’s previous government.
The draft decree sets maximum annual spending for supporting non-solar renewable energy sources at €5-€5.5 billion compared to €6-€7 billion in an earlier draft, wind energy association ANEV and renewable associations APER and ANIE said in a joint letter.
The cash-strapped government has also set at 6MW the capacity threshold at which wind and other renewable plants would have to participate in competitive auctions for tariffs, ignoring renewable energy requests to raise the threshold to a minimum 50MW.
The latest legislation also sets a floor price equivalent to 50% of a base auction price, down from the 70% multiple previously foreseen. "The base price is already too low and then if you add this measure, you put the IRR at risk," said APER director Marco Pigni. "We are a bit worried."