Regional Incentives

Depending on their marginal costs, electricity distributors can choose to generate green electricity or purchase it on the market from independent power producers via Green Certificates. In 2006, the nominal price of a green credit was 125,28 €/MWh for the 4.3 TWh certified by Autorità per l'Energia Elettrica e il Gas (AEEG). The reference price was increased to 137,49 €/MWh in November, 2007.

A second flexible market mechanism allows the electricity and gas distributors either to implement energy efficiency projects themselves or to use the energy efficiency credit trading system of White Certificates to purchase energy savings resulting from third party (such as Energy Service Companies - ESCOs) projects. The nominal price of a white certificate in 2006 was 100 €/TOE2 for efficiency savings certified by AEEG. In both cases, the prices are a function of demand resulting from gradually increasing government mandates and the certified supply offered by independent producers.

The third major national incentive is the conto energia, a feed-in tariff premium for solar electricity up to a ceiling of 1300 MW of new capacity installed. The 2008 tariff of 36 to 49 eurocents/kWh (depending on the size of the PV system and the level of integration into buildings) is paid on the kWh produced (thus there are additional gains from sale and/or savings for self consumption) and is fixed through a PPA contract for a period of 20 years.

At the regional level, Tuscany offers subsidies (up to €50,000 as a percentage of investment), financing (up to €500,000) and guarantees (80% of financing, up to €1,500,000) for relatively small grid-connected renewable energy systems. Such financial instruments are generally offered to public and private end-users and to small & medium enterprises.