FerX: applications for incentives covering up to 27 GW of renewable energy open on 25 August
The operational rules drawn up by the GSE for accessing the auctions have been published by a MASE directorate decree
Key points
The procedures leading up to a new round of auctions for financial support for renewables are now in full swing. The operational rules drawn up by the GSE for participation in the FerX auctions – covering a total of 27.15 GW of renewable energy projects with a capacity exceeding 1 MW – were published yesterday by a MASE directorate decree. Plants with a capacity below this threshold, up to a maximum of 10 GW, can access the incentives directly without going through the auctions.
Preliminary qualifying round from 25 August
The ministerial decree, published in the Official Gazette last week, introduces stricter eligibility criteria than those previously in place. Applicants must now go through a preliminary qualification stage (in order to be able to subsequently submit an expression of interest for the auction), for which applications must be submitted from 25 August. The GSE undertakes to respond within 90 days, reduced to a maximum of 60 days for the first auction, which is to be held by autumn. Applications for preliminary qualification to take part in the first auction must be submitted by 30 September. This application can only be submitted via the dedicated function on the FER-X Definitivo portal.
New installations or refurbishments permitted
As well as introducing new objective requirements, the final FerX regulations provide for various types of works: new construction, complete refurbishment, upgrading and partial refurbishment. New construction projects are eligible for all types of plant; complete refurbishment is permitted for all types of plant, with the exception of hydroelectric plants installed on aqueducts; upgrading is permitted for all types of plant, with the exception of hydroelectric plants; partial refurbishment is not permitted for wind and photovoltaic plants.
Auctions dedicated to non-Chinese components
As was the case with the provisional FerX scheme, this new round of auctions also includes a section dedicated to installations that do not use components manufactured in third countries on which the EU wishes to reduce its dependence. Such as China, for example. Installations that do not use or assemble products originating from those countries are eligible to participate in these auctions. In the case of photovoltaics, for example, this includes products based on solar-grade polycrystalline silicon; solar-grade silicon ingots or equivalents; photovoltaic wafers or equivalents; solar glass; photovoltaic trackers and their specific mounting structures. Provision is also made for cases where priority may be granted in the ranking: in particular, projects involving existing photovoltaic installations in agricultural areas, provided that they do not result in an increase in land use following the project’s completion. Furthermore: where the project is located in eligible areas or in ‘acceleration’ areas. Or where the owner or operator of the system has entered into long-term power purchase agreements (PPAs) with a duration of at least 10 years. ‘With the publication of the final operational rules for Fer X, we are taking an important step towards the full implementation of a strategic measure for the country’s energy future – said Vinicio Mosè Vigilante, CEO of GSE – the rules provide operators with a clear and well-defined framework for accessing incentives and the procedures required to participate in the mechanisms set out in the decree, facilitating the rapid mobilisation of investment.”
Access is restricted to authorised users connected to the network
The requirements set out in the decree stipulate that renewable energy plants with a capacity of 1 MW or less, which commenced construction after the decree came into force and which meet the necessary environmental protection requirements – including compliance with the ‘Do No Significant Harm’ (DNSH) (a requirement also applicable to plants with a higher capacity). As regards the auctions, eligible plants (with a capacity exceeding 1 MW) must, at the preliminary stage, already hold the necessary authorisation for the construction and operation of the plant, as well as a definitively approved grid connection proposal and registration of the plant on Terna’s Gaudi system – the portal that uniquely identifies all green energy projects – and validated by the grid operator. In order to participate in the auctions, plants must first be pre-qualified and have submitted an expression of interest, indicating, in their application to participate, a percentage reduction on the higher operating price. Furthermore, they must comply with national and EU regulations on environmental protection and must fulfil the obligation to participate in the Balancing and Redispatching markets.
