Italy's strategy to accelerate the deployment of renewable energy has taken another step forward with the signing of the final FER X decree by Environment and Energy Security Minister Gilberto Pichetto Fratin. The move comes just ten days after the European Commission approved the support scheme, valued at up to €23 billion, concluding that it complies with EU state aid rules.

With the ministerial signature, the mechanism enters the final stage of the approval process before its official publication and will support the deployment of up to 37.15 GW of new renewable capacity across solar photovoltaic, onshore wind, hydropower, and sewage gas recovery technologies.

27.15 GW to be allocated through competitive auctions

The decree establishes a maximum allocation of 37.15 GW of new renewable energy capacity. Of this total, 10 GW will be reserved for projects with a capacity of up to 1 MW, which will be able to access the support mechanism directly. The remaining 27.15 GW will be allocated to larger projects through competitive procedures organised by the Gestore dei Servizi Energetici (GSE).

According to the ministry, the capacity made available through the auction process will be distributed as follows:

• 16.5 GW of onshore wind
• 10 GW of solar photovoltaic
• 630 MW of hydropower
• 20 MW of sewage gas recovery projects

The European Commission estimates that the programme will enable the deployment of 37.15 GW of new renewable capacity, equivalent to nearly half of Italy’s current installed renewable energy base.

Contracts for Difference to support renewable deployment

The scheme approved by Brussels is based on two-way Contracts for Difference (CfDs) with a duration of 20 years. Under this mechanism, generators will receive payments when electricity market prices fall below the agreed strike price and will return revenues to the state when market prices exceed that level.

For projects above 1 MW, support will be awarded through competitive auctions, while smaller installations will be eligible for direct support with strike prices set administratively by Italy’s energy regulator.

The European Commission said the programme will help Italy achieve its target of sourcing 39.4% of gross final energy consumption from renewable sources by 2030, while strengthening energy security and reducing dependence on imported fossil fuels.

The Ministry of Environment and Energy Security stated that, once the decree enters into force, it will have 60 days to approve, following a proposal from GSE, the operational rules governing access to the support mechanism.

The European approval and subsequent signing of the decree provide continuity to Italy’s renewable energy support framework and advance the implementation of one of the largest renewable energy support programmes authorised by the European Union to date.