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Gradual fall in tariffs but cap for Italian PV

24 March 2011

The Italian Ministry of Economic Development has given its informal approval to proposals on changes to the Italian photovoltaic incentive regime submitted by the trade association representing heavy industry in Italy, Confindustria. Contrary to market speculation, a 30% tariff drop on 31 May is highly unlikely, but rather a 30% drop will be phased in gradually until the end of 2016. More worryingly for developers and sponsors is the likely introduction of a Eu6 billion ($8.5 billion) money-value cap on the total amount of tariffs paid to PV projects.

The Italian government passed a decree on 4 March halting the third energy bill (Conto Energia III) tariff regime on 31 May 2011, which shocked the market and puts at risk projects in construction whose sponsors had expected a gradual step down in tariffs through 2011.

The Confindustria proposals, which were presented to the Ministry of Economic Development on 18...


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