Redefinition of the guaranteed minimum prices for electricity production plants up to 1MW powered by renewables sources
The Italian Electricity and Gas Authority (AEEG) issued on 31 October 2013 the new consultation document No. 486/2013/R/efr1 containing guidelines and proposals for the redefinition of the guaranteed minimum prices for electricity production plants up to 1MW powered by renewables sources.
The guaranteed minimum prices were introduced by AEEG with resolution No. 34/05 with the purpose of ensuring coverage of the production costs of the power plants up to 1MW powered by renewable sources, within the limits of the first two million kilowatt-hours annually produced by each plant and injected into the grid. It was deemed essential, in encouraging the production of electricity from renewable sources, to provide an additional incentive for small plants, whose production costs are particularly high, in order to ensure their economic survival even in case the market prices were to fall significantly.
Such guaranteed minimum prices are actually recognised and paid by the GSE (an Italian energy services operator) only to those power plants that have chosen the dedicated withdrawal (‘ritiro dedicato’). The dedicated withdrawal is the simplified instrument for the sale of electricity as an alternative to bilateral agreements or direct sale on the market that consists in transferring the electricity to the GSE, which remunerates the producers by paying a price for each produced kilowatt-hour. The GSE values the electricity fed into the grid by the producers in the context of the dedicated withdrawal system at the average hourly market price for the zone in which the plant is connected to the grid. The guaranteed minimum prices are, in the context of the dedicated withdrawal, an additional incentive for the small plants up to 1MW powered by renewables sources, without prejudice to the possibility of being paid more if the remuneration at hourly local prices is higher…
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The Australian Taxation Office released a draft ruling on the Goods and Services Tax treatment of bitcoin transactions on 20 August 2014.
DLA Piper’s ‘Life sciences: patent extension strategies and antitrust global update’ video covers global antitrust and competition issues including product hopping and reverse payment patents.
Analysis from The Lawyer
Cross-border work and political tensions are dominating this year’s entries for Finance Team of the Year at The Lawyer Awards.
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work