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New Italian renewable subsidies awarded

Tom Andrews Senior Analyst

Results of the first auction under the new Italian renewables subsidy were announced on 28 January by GSE, the country’s energy agency. The format of the auction provides top-up premia for generators, with developers bidding reductions of between 2% to 70% against a reference price of €70/MWh (£59.40/MWh). This was the first in a series of seven auctions planned over the period to end-2021, with the next to be held this month. Up to 4.7GW of capacity will be supported in total. Of the 500MW of new-build capacity available in the auction, 495MW was awarded to onshore wind generation, with a single 5MW solar PV installation also securing a subsidy. This Group A is restricted to onshore wind and solar, with a sub-auction for rooftop solar where construction includes the removal of asbestos. Prices in this auction ranged from €66.50/MWh down to €48.65/MWh, with a weighted average of £57/MWh (£48.40/MWh). 19 sites were successful in total. Group B consists of new hydroelectric or biogas plants. No capacity was awarded in Group B, which had a 5MW target in the auction. Group C will provide subsidy to plants being partially or totally renovated, including the re-powering of onshore wind, refurbishment of hydro, and renovation of biogas. Five additional sites, with 21.5MW of capacity, were awarded a renovation or repowering subsidy. This was far below the 60MW cap for renovating plant. Successful plants were a pumped hydro unit, two run-of-river hydro units and two more onshore wind farms. ...

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