Italy

Support Schemes

Only for Biogas

"New” Green Certificates

Italian Law No. 222/07, Italian Law No. 244/07 ("2008 Finance Act") and Italian Regulatory Authority for Electricity and Gas Resolution No. 280/07 introduced new incentive mechanisms for plants using renewable sources that came into operation after 31 December 2007. These plants may either be newly built, renovated or upgraded.



The following plants of agricultural interest with rated annual average output of more than 1 MWh are eligible for Green Certificates for a period of fifteen years: wind energy (for systems larger than 200 kW); hydraulic power; biomass and biogas from agricultural, livestock and forestry (short rotation coppice) businesses.

Since 1 January 2008, Green Certificates have had a unit value of 1 MWh. The number of certificates issued by the GSE is equal to the electricity production multiplied by a specific coefficient according to the source (1.8 for biogas).

Since 2008, the Green Certificates issued by the GSE have been placed on the market at a price (referring to electric MWh) equal to the difference between the reference value, fixed upon first application of the laws as 180 euro per MWh, and the average annual sale price of electricity recorded for the previous year, as defined by the Regulatory Authority for Electricity and Gas. This annual sale price has been published by the Authority itself by 31 January each year since 2008.

The reference value and coefficients may be updated every three years in order to ensure adequate remuneration for the purpose of promoting the development of renewable energy sources.

All-inclusive flat rate
As an alternative to Green Certificates, upon the producer's request, the production of electricity from renewable sources with a rated annual average of no greater than 1 MWh, fed into the electrical system, is entitled to an all-inclusive flat rate of 30 €c/kWh for a period of 15 years in the case of biomass and biogas from short-production-chain agricultural, livestock and forestry businesses (this rate may be adjusted every three years by Ministry of Economic Development Decree to ensure the adequacy of the remuneration in order to promote the development of renewable energy sources).

After the fifteen-year incentive period, the electricity is paid for at the price defined in Italian Legislative Decree No. 387/03.

“New” all-inclusive flat rate

Italian Law No. 99 of 23 July 2009 introduces a new all-inclusive price of 28 €c/kWh valid for plants fuelled by “biogas and biomass, excluding liquid biofuels with the exception of pure vegetable oils traceable through the integrated administration and control system laid down in European Council Regulation (EC) No. 73/2009 of 19 January 2009”.

The law also stipulates the possibility of combining incentives, without any obligation of proving the origin of the biomass. In other words, a biomass-fuelled plant owned by a farm, or operated in connection with an agricultural, food, farming or forestry company may combine the all-inclusive fixed price, after it comes into commercial operation, with other public incentives with advance capitalization not exceeding 40% of the cost of investment.

New incentives for generating electricity from biogas

From January 1, 2013 will come into force a new incentive mechanism.

Table "high-efficiency cogeneration supplementari incentive"

Direct Subsidies

Level of incentives in the D,M. 6 July 2012. For biogas plants that became operational from 1 January 2013

Indirect subsidies
N/A