Italy assigns FiT to 365MW

ITALY: Italy has assigned a feed-in-tariff (FiT) to 365MW of onshore wind farm projects in a heavily competitive auction process, with selected projects offering discounts of 26.38% to 30% on a base auction price.

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State agency Gestore dei Servizi Energetici (GSE), which ran the recently completed auction, said some 900MW of projects offering discounts ranging from a modest 5.6% to a hefty 26.11% did not qualify for the tariff.

The base auction price for the auction was EUR 127/MWh, meaning that winning projects have agreed to accept FiT as low as EUR 88.9/MWh. The tariff is paid out for 20 years.

According to GSE, no projects competed in an auction for offshore wind. A total of 65MW of small-scale projects were assigned a FiT outside the auction process.

Market participants point to regulatory uncertainty following this auction, the third that has been held by GSE.

While the auction system is expected to continue, the Italian government must still approve legislation on the future market framework.

Meanwhile, the pace of growth in the Italian wind sector has slowed considerably. Only about 50MW of new capacity has been added this year, bringing the cumulative total to about 8.6GW.

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