In a bid to stabilize the solar photovoltaics market,
the Italian government recently announced that it will
reinstate guaranteed purchases of green certificates
in Italy for 2010; it now plans to cut the feed-in tariff
payments for power from solar photovoltaic plants beginning
in 2011, reports Bloomberg.
The proposal, which still needs approval from the Italian
parliament, maintained the terms in a draft bill circulated
June 1 calling for the tariff to decline by 6% every
four months in 2011 and a further 6% in the two years
However, Francesco D'Avack, solar analyst at Bloomberg
New Energy Finance in London, predicts that by leaving
the FiT rate at a fairly attractive level, the country
may see a rush from developers to build solar plants
in Italy just as in Spain and Germany in recent years.
"The Italian market risks entering a dangerous
boom and bust cycle," D'Avack said. "All this
could lead to unsustainably fast growth and a belated
reaction by the government to keep costs in check. There
are a couple of fat years ahead for developers."
If passed, the new law will establish a 3GW cap on solar
capacity by the end of 2013 in addition to 200MW for
BIPV projects and 150MW for CPV projects.
The new solar energy bill is due to come into effect
on January 1, 2010 and substitute the 2007 version, which
led to approximately 1.13GW in PV capacity being installed
by the end of 2009, according to figures from grid regulator
GSE. The government now aims for solar capacity to reach
8GW by 2020.
"The Conto Energia and the new guidelines for renewable
projects, long-awaited by sector's players, provide a
decisive push to the government's renewable energy strategy," said
Stefano Saglia, under-secretary for energy at the ministry. "These
measures boost innovation in a key sector for growth
and competitiveness of the country and allow the harmonization
and simplification of national and regional procedures."
The new guidelines will be sent within 90 days of the
text's publication to regional and local authorities,
which are the entities that approve projects in the country.