The new decree regulating the incentives for electric energy produced from renewable sources other than photovoltaic energy has been published in the Official Journal of Italy. The decree was signed by the Ministry for Economic Development in concert with the Ministry for the Environment and the Protection of the Territory, and by the Ministry of Agricultural, Food and Forestry Policies. (Decree dated 23 June 2016 - Incentives for electric energy produced from renewable sources other than photovoltaic energy)
Through the decree, Italy has transposed European Directive 28/2009 into its legislation and reorganised the entire sector by taking into account renewable energy targets (17% by 2020) established in the international agreements signed by Italy.
The provision will be in effect until 31 December 2016.
Biomass received the greatest incentive funding allocation, with 105 million euros set aside for waste-to-energy from scraps and agricultural residuals.
Plants below threshold values have direct access to incentives while those with greater power can access through either a register or auction process.
In addition to having direct access to the incentives without having to go through the register or auction process, biomass power plants up to 200kW will be able to request these incentives for all of 2017. For other types of plants and renewables, the provision will remain in effect only until 31 December 2016.
Incentive rates for new biomass plants are very favourable and are classified under two broad categories: derived materials (i.e. scraps) and natural materials.
For materials derived from agricultural, animal farming, green area management, and forest activities, as well as for by-products of food and agri-industrial activities, the rate is €0.246 kW/h.
For annual or perennial herbaceous plant species, or tree species, the rate is €0.210 kW/h.
Authorisations fall within the competence of the regions and are defined depending on the size of the plant in three different ways: a communication for smaller plants, a notice of commencement of work for medium-sized plants, and a single authorisation for larger plants. In this regard, the Ministry of the Environment issued the guidelines for the regions on the subject of single authorisations last September.