Italy implements FER 2 Decree to boost innovative renewable energy projects
On August 13, 2024, Italy’s Ministry of the Environment and Energy Security (MASE) implemented the FER 2 Decree, aimed at supporting innovative renewable energy plants with high generation costs and low environmental impact. The decree targets specific types of plants, including biogas and biomass plants with capacities up to 300 KW and 1,000 KW, respectively, as well as thermodynamic solar, offshore floating wind, and floating photovoltaic installations. These plants must meet stringent eligibility criteria, such as obtaining the necessary permits and grid connection approvals and adhering to environmental standards.
The decree excludes companies facing financial difficulties or legal prohibitions, and plants that began construction before the publication of the official ranking list. Incentives are accessible through competitive tenders, which will run from 2024 to 2028, offering a total capacity of 4.59 GW. The reference incentive rates for 2024 vary depending on the type of plant, with biogas set at €233/MWh, traditional geothermal at €100/MWh, and offshore wind at €185/MWh, among others. These rates will decrease by 3% annually.
The incentives can be combined with specific financial aids, such as capital grants covering up to 40% of the investment cost, guarantee and revolving funds, and tax reliefs for investments in machinery and equipment.