Why Italian renewables snort against the Sostegni ter decree
According to Anev, Elettricità Futura, Utilitalia and the Italian electricity associations, the Sostegni ter decree "creates distortions" in the energy market. Here because
A group of trade associations in the Italian electricity sector from renewable sources – such as ANEV , Elettricità Futura, Italia Solare and Utilitalia – protested against article 16 of the so-called Sostegni ter decree which "introduces discriminatory measures between electricity producers based on generation technology, it creates market distortions that undermine investor confidence and risks slowing down the energy transition process ”.
WHAT IS IN THE TER SUPPORT DECREE
The associations, in a press release , say they appreciate "that the purpose of the Law Decree 04/2022 is to limit the negative impacts of the increase in energy prices, mainly due to the sharp rise in gas prices, on the Italian economy. and on energy consumers, and we support this intention. However, article 16 of Law Decree 04/2022 ("DL Sostegni ter"), published in the Italian Official Gazette on January 27, 2022, introduces recovery measures ('clawback') in relation to photovoltaic systems at the Feed- in tariff. Premium , as well as for geothermal, hydroelectric, photovoltaic and wind power plants merchant power with power exceeding 20 kW. The vast majority of these plants will receive a fixed reference price until 31 December 2022, based on the historical average of the zonal prices of electricity in Italy ".
DISTORTION OF ENERGY MARKETS
“The measures included in article 16 ″ they add,“ will lead to significant distortions of the wholesale energy markets and the behavior of buyers and sellers in the market. They could affect the free formation of prices as required by the Electricity Regulation (2019/943) by effectively establishing an unavoidable and administratively determined strike price for any possible future Power Purchase Agreements (PPAs) in contradiction with the declared objective of the government to promote the conclusion of these contracts in the Italian electricity market ".
OBJECTIVES ON RISKY EMISSIONS?
“These complex and discriminatory measures will jeopardize the Fit for 55 objectives, breaking investor confidence, with huge impacts on investments in RES and undermining the proper functioning of the EU internal electricity market. Furthermore ", they continue," Article 16 of the 'DL Sostegni ter' is inconsistent with the proposals contained in the European Commission's 'tool box for action and support' that the EU and its Member States can use to address the immediate impact of current price increases, and further strengthen resilience against future shocks ”.
ITALIAN NEEDS
Italy, the signatories of the statement write, “needs to speed up and simplify the authorization procedures to install at least 8 GW of new renewable capacity every year until 2030 to achieve the Fit-for-55 objectives. However, less than 1 GW / year has been installed in recent years, mainly due to long and complex permits. Going forward with the current version of article 16 of decree law 04/2022 risks further slowing down the energy transition process in Italy and Europe, putting vital investments at risk for the entire economy ”.
THE EXAMPLE OF SPAIN AND ROMANIA
“Similar interventions were proposed in other Member States in 2021 (Spain and Romania), resulting in significant regulatory instability and profound changes in contractual dynamics. Consequently, the scope of the original measures has been drastically revised or blocked ”.
THE REQUEST TO THE GOVERNMENT
"For all these reasons", the press release concludes, "the Italian and European electricity sector asks the Italian government to withdraw article 16 of decree law 04/2022 and to start a constructive dialogue to define effective and balanced solutions to address the rising energy prices. A well-functioning electricity market is one of the best tools to protect consumers from price volatility and to ensure a cost-effective transition to a neutral economy in Italy and Europe ".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/energia-elettrica-rinnovabili-decreto-sostegni-ter/ on Thu, 03 Feb 2022 14:35:44 +0000.