Renewables: Brussels approves Fer2 decree

Brussels' green light for the Fer2 decree scheme promoting the construction of production plants from renewable sources that are not fully mature or have high operating costs, from offshore wind to biomass, from traditional geothermal to tidal energy. The imminent arrival of the European green disk had been anticipated in recent days by the Minister for the Environment and Energy Security, Gilberto Pichetto Fratin, from the stage of the Trento Festival dell'Economia organised by Il Sole 24 Ore: 'The decree is now at the end of its run at European level, it should be dismissed quickly and I expect a return very soon,' the Mase owner had explained. Who on 4 June, following the OK, stressed that this step was 'an important step towards our energy objectives, which comes after a long and constructive discussion with the European institutions'.

The intervention will now reach the table of the concerting ministers (read Agriculture) for signature and then be forwarded to the Court of Auditors for registration and subsequent publication. The decree aims to incentivise the construction of a capacity of 4.6 GW of plants by 31 December 2028, of which 3.800 GW only from offshore wind - which has recorded a significant acceleration as documented by the increase in connection requests received by Terna - by including in the mechanism also plants on fixed foundations beyond 12 nautical miles, as urged by the Unified Conference. Which had asked for further corrections during the course of the project, including an increase in the quota for both zero-emission geothermal energy for a total of 60 MW and an increase in the quota for offshore wind plants for a total of precisely 3.8 GW.

Access to the incentives will be through auctions to be announced by the GSE. As for the tariffs on which the competitive procedures will be based, they range from 100 euros per MWh insured for traditional geothermal with innovations for 25 years to 185 euros per MWh for offshore wind (regardless of power), again over the same time frame.

Turning then to photovoltaics, the bar is set at 105 euros per MWh over 20 years for floating systems (floating), while for floating on inland waters the range goes from 90 euros per MWh, guaranteed for powers between 1 and 1,000 kW, to 75 euros per MWh if you go beyond 1,000 kW. On thermodynamic solar, on the other hand, there are three levels: 300 euros per MWh for power between 1 and 300 kW; 240 euros per MWh between 300 and 5,000 kW; and, finally, 200 euros per MWh if you go over 5,000 kW. The decree also incentivises, as mentioned, installations from tidal, wave and other forms of marine energy, setting an incentive, for all powers and over 20 years, of 180 euros per MWh.

The method of remuneration envisages a full tariff for 2024, while for the following years (2025 to 2028), that bar will be lowered by 3% per year for all plants except those with a capacity of up to 300 kilowatts (for these, the decree clarifies, the cut will only come into effect from 2026).