No Change to FIT Expected in Italy

Concerns over possible revisions to the Italian PV feed-in tariff being aggressively adjusted downwards and even the imposition of a installation cap (following the recent reductions in Germany) are looking less likely, according to a research note from Barclays Captial analyst, Vishal Shah. Political posturing in recent days, indicates that Italian Government ministers are not supporting any FiT system that would include a cap.

It was suggested that an 8GW cap could be introduced after the massive increase in installations and requests for connection had been received by the GSE body. Trade groups had suggested a cap being introduced, targeted at 12GW.

However, according to Shah;

The Minister of Environment made a statement yesterday on the need for a gradual decrease of the incentive burden as opposed to a complete freeze of incentives. Even today, at Enel's carbon sequestration opening ceremony, the Environment Minister made a statement to the press that as far as she was concerned, there will be NO cap of 8GW, and that the language of the draft decree was still under discussion/negotiation.

A final draft of the expected FiT changes was said to be written tonight and will go to the council of ministers for a discussion tomorrow.

P.S.      The other day some Italcogim (French Energy Company) salespeople knocked on our door in Genova.   Turns out Italy only produces about 15 to 20% of its own electrical energy - buying what it needs from France and Switzerland ... and the gas it needs from Russia, Algeria, Libya, etc.   They were offering us the opportunity to buy direct from them -- at a nice discount.   The point is that Italy needs to produce it's own energy - therefore they are promoting solar energy with the FIT.