Italy energy update — January 2014

On 24 December 2013, the Decree n. 145 (published on the Official Gazette of the Republic of Italy on 23 December 2013), which provides for a package of measures aimed at the economic development known as ‘Destination Italy Plan’ (Piano Destinazione Italia), entered into force. Such decree provides, inter alia, for the introduction of an optional incentive system offered to renewable electricity producers and for the reduction of guaranteed minimum prices granted to plants with a power capacity of less than 1MW. The conversion process of the decree into law has not yet started and therefore it may be amended through this conversion process; a new version of this alert will be issued in order to reflect changes, if any.

In order to ‘contain the annual charge on electricity prices and tariffs of the incentives for renewable energies and to maximise the production of the existing plants in the medium and long term’, the producers of electricity from renewable sources, who own power plants admitted to incentives in the form of green certificates, feed-in tariffs or premium tariffs, in connection with such power plants, can opt for a reduction of the incentive and for a simultaneous extension of the incentive period…

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