Auctions (FER1 Decree)

• DI 04/07/2019
• MD 23/06/2016
• LD 76/20
• L 120/20

Plants with capacity above or equal to 1 MW can access incentives in form of sliding feed-in premium through the reverse auction system, which is opened seven times a year.
The renewable energy technologies have been grouped and compete in the following categories:
• Group A: onshore wind and PV
• Group A-2: PV plants installed on rooftops to replace asbestos coverages.
• Group B: hydroelectric plants and residual gas
• Group C: Renovated onshore, hydroelectric and residual gas plants.
In each of the seven auction procedures, different capacity quotas are assigned for each technological group.
If in the future, the market price was to move above the applicable tariff for each renewable technology, the selected installations would not only cease to receive a premium, but they would have to give back to the Italian authorities the additional revenue.
Apart from that, the support scheme will be terminated between the 30th of September 2021 and the date on which the “average annual indicative cost”,(the annual spending of the support scheme) will reach €5.8 billion.

Installed capacity
In each of the seven auction procedures, different capacity quotas are assigned for each technological group.

Sliding feed-in premium (also called Contracts for Difference – CfD)
In this auction scheme, participants must at least offer a reduction of 2% on the base tariff. This is equivalent to a ceiling price and depends on the technology and size of the project:
• Onshore and PV: base tariff €70/MWh for plants ≥ 1 MW (ceiling price: €68.60/MWh and floor price: €21/MWh)
• Hydro and sewage treatment gas: base tariff 80 €/MWh for plants ≥ 1 MW (ceiling price: 78.4 €/MWh and floor price: 24 €/MWh)
The maximum possible deduction amounts to 70% on the base tariff for all technologies.
Apart from that PV plants installed on rooftops to replace asbestos coverages are particularly favoured and receive a €12/MWh premium in addition to the base incentive. Such a premium is paid on the produced electricity, irrespective of whether it is fed in the grid or self-consumed.

Auctions apply to RES plants which are not already incentivised under previous feed-in tariff schemes, nor under the previous version of auctions under MD 23/06/2016 (applicable until end of 2017). Plants located in other EU member states (or in a third neighbouring state having a free trade agreement with the EU), which physically export electricity to Italy can also apply for incentives by participating in reverse auction system.

A two-stages bid bond is required. In order to participate, plant operators are obliged to deliver a provisional bank guarantee at the time of registration and a final bank guarantee following the communication of a positive outcome or alternatively the expected investment cost must be paid (all of these fees are expected to be reimbursed) (MD 23/06/2016). Moreover, a grid connection permit (Art. 3, DI 04/07/2019), a building permit, and a registration of the RE plant on the Management System of the Single Master Data of the Production Plants and related units (“Gaudi”) is required (Art. 3, DI 04/07/2019). These proceedings now take into account the simplifications decree for swifter administrative proceedings (art. 56 of LD 76/20).
The construction works must not have started at the time of the application.
The allowed time period for the realisation of “winning” projects is as follows:
• Wind onshore: 24 months
• Hydro-power: 31 months
• PV: 19 months
• All other types: 31 months

• GSE
• MiSE