The Italian Ministry of Environment and Energy Security has finalized the FER X decree, authorizing a 10GW allocation specifically for solar PV. Signed by Minister Gilberto Pichetto on August 7, the broader initiative targets a total of 37.15GW of new renewable capacity, encompassing wind, hydropower, and purified residual gas. This strategic framework is designed to fast-track Italy’s transition toward its 2030 renewable energy objectives. By providing long-term price security through contracts for difference, the government aims to stimulate significant investment and infrastructure development across the country’s energy sector while addressing specific regional deployment challenges.
Under the new rules, power plants with a capacity of up to 1MW can access support mechanisms directly through 2030, utilizing the 10GW solar allocation. The remaining 27.15GW will be distributed via seven competitive auctions scheduled between 2026 and 2028. Four of these auctions will be exclusive to solar PV and wind power, requiring developers to adhere to pre-qualification criteria aligned with the EU’s Net-Zero Industry Act. These specific requirements mandate the procurement of non-Chinese components for solar systems, building on standards established during previous successful tenders that awarded 1.1GW of solar capacity.
Financial parameters for solar PV projects have been set with a strike price of €80/MWh, capped by a superior threshold of €95/MWh and an inferior floor of €65/MWh. These figures represent an increase over the average price seen in last year’s initial tender, where nearly 7.7GW of solar PV was awarded at an average of €56.825/MWh. To account for varying project complexities, the scheme includes price adjustments, offering an additional €27/MWh for rooftop solar installations that replace asbestos or eternit, and a €10/MWh premium for projects constructed on bodies of water.
Managed by the Gestore dei Servizi Energetici, the support scheme grants successful applicants a 20-year contract for difference. Once awarded, developers are required to complete their solar PV projects within a 36-month timeframe. Having received European Commission approval in June, the FER X decree serves as a critical policy instrument for the Italian market. While the scheme provides much-needed financial stability for independent power producers, industry participants note that ongoing hurdles, particularly regarding the national permitting process, remain a significant factor for the future of renewable energy deployment in Italy.