Renewables
New renewable energy incentive framework launched in Italy
Italy has introduced a comprehensive incentive framework managed by the GSE to support renewable energy deployment through auctions and grants until 2030.
Key points
- Operators can submit expressions of interest for the first Fer X auctions starting 22 October 2026.
- The scheme allocates 27.15 GW through competitive auctions and 10 GW for direct access in plants up to 1 MW.
- Subsidies are paid over 20 years via a two-way contract for difference mechanism.
What happened
According to Il Sole 24 ORE, Italy has officially launched a new support scheme for electricity generation from renewable sources under the final Fer X decree. Managed by the Gestore dei Servizi Energetici (GSE) and led by Vinicio Mosè Vigilante, the framework runs until 31 December 2030 and covers photovoltaic, wind, hydroelectric, and wastewater treatment gas installations.
The application window for the first competitive procedure opens on 22 October and closes on 6 November 2026. Eligible technologies include new installations as well as refurbishments and capacity expansions, with specific procedures under the European Net Zero Industry Act (NZIA) for solar and wind projects.
Auction structure and quotas
Auctions apply to projects exceeding 1 MW in capacity. Applicants must complete a preliminary qualification process and submit financial guarantees via the Centralised Guarantees Portal. In total, the framework allocates 27.15 GW through auctions, divided into 16.50 GW for wind power, 10 GW for photovoltaic systems, 0.63 GW for hydroelectric generation, and 0.02 GW for sewage gas.
A separate allocation of 10 GW is designated for direct access by plants up to 1 MW. Projects under 200 kW may also request an all-inclusive tariff where the GSE purchases the generated energy directly.
Financial mechanisms
Successful operators receive support through a two-way contract for difference spanning 20 years. Producers sell power on the market, receiving the difference from the GSE if the reference market price falls below the awarded bid, or reimbursing the GSE if market prices exceed it.
For solar power, feed-in tariffs stand at 80 euros per megawatt-hour with an upper limit of 95 €/MWh. Wind power prices are set at 85 €/MWh and 95 €/MWh, while hydroelectric tariffs range from 90 €/MWh to 105 €/MWh. Location coefficients are also applied in solar auctions to balance regional capacity targets.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
27.8% of electricity in the world was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
