Decarbonisation

Energy: the FerX decree on incentives and mature renewable energy sources comes into force today – what’s changing?

The measure applies to photovoltaic, wind and hydroelectric power stations, as well as facilities for treating waste gas from wastewater treatment processes

 (Adobe Stock)

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

The FerX decree formally comes into force today. The text of the decree, signed by Minister Gilberto Pichetto Fratin, has been published on the website of the Ministry of the Environment and Energy Security following approval by the Court of Auditors. On 8 June, the European Commission decided not to raise any objections to the measure, deeming it compatible with the internal market. The final FerX decree contains numerous new provisions, ranging from a maximum quota of 37.15 GW of new renewable capacity to the criteria for accessing financial support.

Scope of application

The decree aims to support electricity generation from renewable energy sources with generation costs close to market competitiveness ‘by establishing a support mechanism that promotes their effectiveness, efficiency and sustainability’, taking into account the 2030 decarbonisation targets.

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Photovoltaic, wind and hydroelectric power plants, as well as plants treating waste gas from wastewater treatment processes, will be eligible for the FerX support scheme. The decree also allows plants located in other EU countries or in third countries bordering Italia – with which the EU has free trade agreements – to receive aid, provided they physically export their output to Italia.

The decree remains in force until 31 December 2030 and, for plants with a capacity of 1 MW or less, for up to sixty days from the date on which a total capacity of 10 GW is reached, if this is achieved before the end of 2030.

Direct access to support

Plants with a capacity of 1 MW or less that have commenced construction following the entry into force of the decree, and which meet the performance and environmental protection requirements necessary to comply with the ‘Do no significant harm’ (DNSH) – a principle designed to reconcile economic growth with the protection of the ecosystem, ensuring that investments are carried out without compromising environmental resources – and which comply with the requirements of the relevant technical regulations on quality and safety.

Registration on Terna’s Gaudi portal is also required. ARERA will set the award prices for these plants, within 90 days of the decree coming into force, in proportion to the cost of the works.

Competitive procedures

Renewable energy plants with a capacity exceeding 1 MW will, however, be required to take part in tenders in order to qualify for support, whilst still complying with certain requirements, including holding the necessary authorisations for construction and operation – including any required licences where applicable – and adhering to the DnSH principle.

The tenders are open to the public and are organised by the Energy Services Operator (GSE). To participate in the auction, power plants must have received preliminary qualification from the GSE and submitted an expression of interest. Mase has announced that the operational rules for the launch of the preliminary qualification phase for plants participating in the first tenders will be published shortly.

The decree also stipulates that at least 30 per cent of the maximum procurement quota for the year in which the tender is launched must be allocated taking into account non-price criteria, in line with the European Net Zero Industry Act. These criteria include responsible corporate conduct in relation to sustainability, the ability to complete the project in full and on schedule, and the auction’s contribution to resilience based on the origin of the final products and the plant’s main components.

The available quota

The decree sets a maximum quota of 37.15 GW of new renewable capacity, divided between new photovoltaic, wind and hydroelectric power stations, and plants for treating waste gas from wastewater treatment processes.

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Ten of these are allocated to plants that receive support directly, with the remainder going to those that receive it via auction, broken down as follows: 10 GW for solar power, 16.5 for wind power, 0.63 for hydroelectric power and 0.02 for plants treating waste gas from wastewater treatment processes.

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