RES

Support schemes
in Italian market

Ing. Nicola Fergnani – nicola.fergnani@polimi.it

Targets: share for RES
Targets: share for RES
EU guideline 2019 n.1999 UE (2030 target)

Final Gross energy Consumption in Europe

32% from renewables by 2030
Power
Heat
Transportation
𝐹𝐺𝐶_𝑟𝑒𝑛
% 𝑇𝑎𝑟𝑔𝑒𝑡 =
𝐹𝐺𝐶_𝑡𝑜𝑡𝑎𝑙
Gross consumption of the Nation
(Industry, buildings, tertiary, transportation,
agriculture, forestry..), after deducting:
Italian Target = 30% - Energy converted into other energy vectors
- Grid transportation losses
Targets: share for RES
Reduction of FGC:
• constraints (e.g. thermal efficiency for new buildings)
• economic subsidy (e.g. 110% tax deduction for energy improvements, TEE)
• technology boost (e.g. increase of HP and boiler efficiency)
• user awareness (e.g. 2G smart meters)

2 Ways Increasing REN share

• constraints (e.g. PV for new buildings 1kW every 50m2 of footprint)
• economic subsidy (e.g. feed-in tariffs for RES, tax reduction)
• technology boost (national research projects)
• permitting simplification
PNIEC 2030
PNIEC 2030

The 32% target is shared among EU nations

ITALY 30%
PNIEC 2030 - Heat
Thermal energy
(heat and cooling)
ITALY 33%

• Heat pumps
• No increase in solid
biomass but
increase in avg.
efficiency and
emissions red.
• Increasing RES in
district heating
PNIEC 2030 – Energy efficiency

The 32% target is shared among EU nations ITALY 30%

PNIEC 2030 - RES
• Competitive bidding feed-in tariffs
• Support to PPA for big plants
• Support to self-consumption (energy communities 2020)
• Repowering and revamping promotion for existing FER (DM O&M for RES)
• Greening small islands
Rest of the world..
Power from REN

Italy peak power demand = 56 GW

Italy annual power consumption = 300 TWh

China = 4300 TWh

USA = 4000 TWh

EU 20-20-20 = 1.6% reduction in global

CO2 emissions
Support schemes in Italy since 1992
Support schemes Monthly installed power

Decreto
“Salva Alcoa”
Many ground-
mounted plants
Support schemes

Decree 04-07-2019
Wind, PV, Hydro, Biogas from water treatment
P > 1 KW (>20 kW for PV)
https://www.gse.it/servizi-per-te/fonti-rinnovabili/fer-
elettriche/incentivi-dm-04-07-2019
Feed-in system (Decree 04-07-2019)
Group C = rebuilding
and repowering
(lower tariff)

-5% > 2021

-36%

As compared
Asbestos removal to FIT < 2019

-43%

-2% > 2021

FIT - feed in tariff (Decree 04-07-2019)
P<250 kW ALL INCLUSIVE FIT
«TO = tariffa omnicomprensiva»
One tariff, all included
(feed-in + market value of energy)

P>250 kW STANDARD FIT

«I = incentivo»
One tariff (lower), as subsidy on production
I = TO – zonal price
The producer sells energy on the market:
• TRADING
• PPA
• RID (for small plants)
FIT - feed in tariff (Decree 04-07-2019)

ON-SITE CONSUMPTION

SELF CONSUMPTION
FIT - feed in tariff (Decree 04-07-2019)
Self-consumption minimum values evaluated by GSE

«K» E2
E1

EEpaid@FIT=min(E1*(1-K);E2)
FIT - feed in tariff (Decree 04-07-2019)
Feed-in cost for the system
Subsidy cost = TO – Zonal price
e.g. feed-in tariff = 110 €/MWh
Feed-in cost for the system
FIT - feed in tariff (Decree 04-07-2019)
How to obtain the support

Direct access to the feed-in tariff

Ranking-based access (P<1MW)

within admissible power

Access through a reverse auction (P>1MW)

(lower bidders wins within admissible power)
FIT - feed in tariff (Decree 04-07-2019)
Available power 2019 - 2021

Ranking-based access
P < 1MW

Reverse auction access

P > 1MW
FIT - feed in tariff (Decree 04-07-2019)
FIT - feed in tariff (Decree 04-07-2019)
Timeline to get the support
Targets
FER II law expected in …. H1 2020?
• Biogas (other than waste-water treatment)
• Biomass
• Geothermal
• CSP
• Waves and sea currents?
Fiscal deduction for residential PV plants
Roof-mounted plants for residential use (or other REN plants)

50% tax deduction in 10 years 
110% tax deduction in 5 years 
5% CAPEX deduced from IRPEF
every year (CAPEX <= 96’000€)
only if coupled with major
energy overhaul of the building
(CAPEX <= 48’000€)
SSP (net metering)
or
RID (ritiro dedicato)
RID (ritiro dedicato)
Energy communities PV plants < 200 kW
2020-09-15: Decree for a feed-in tariff mechanism aimed at supporting
production for nearby self-consumption

Tariff for self-consumed energy, granted by GSE for 20 years,

respectively equal to:
• 100 €/MWh for collective self-consumption configurations
in the same building
• 110 €/MWh for renewable energy communities within the same
MV-LV transformer
RID (ritiro dedicato)
• P < 10 MW
• Not compatible with “feed-in premium” mechanisms, except “conto energia I-III”
and fiscal deductions
SSP (net metering)
Features:
• Suitable with old “feed-in premium” mechanism, fiscal deductions (except superbonus 110%)
• most common: PV plants built with I~IV Conto Energia
• (no V Conto Energia or DM 2019)

REQUIREMENTS:
• P < 20 kW every RES plant
• 20 < P < 200 kW RES plant
not receiving feed-in subsidies

Possibility to use the Grid as

“energy storage”
Energy injected paid @ zonal price
Energy purchased discount
 60 €/MWh
SSP (net metering)

System cost

energy bought
@ market price + mark-up
SSP (net metering)
Targets Support mechanisms summary

P < 250 kW
DM 4/7/2019 ALL-INCLUSIVE FEED-IN TARIFF
PV > 20kW
WIND, HYDRO
BIOGAS
(and revamping) P>250kW
STANDARD FEED-IN (PPA or trading to sell excess)

RID
FISCAL DEDUCTION
PV and
SOLAR THERMAL

SSP
THANK YOU FOR YOUR ATTENTION

Ing. Nicola Fergnani – nicola.fergnani@polimi.it