New measures and incentives to support private investment on Green Policies

Lawyer Andrea Bernasconi

On March 2018 a set of decrees for the promotion of alternative energy policies has been signed by the Italian Ministry of the Economic Development. Meanwhile, the Ministry engaged in a number of procedures, along with the Ministry of the Environment, in order to promote new guidelines on renewables.

Among the most significant measures, the decree for the promotion of the use of biomethane and other advanced biofuels in the transport sector should be remarked. Italy, which is already a leader country in the European biomethane market, sets the target for the consumption of renewable energy in the transport sector out to 10% to be fulfilled by 2020. None of the provisions will adversely affect the gas or electricity bills of the final consumers, since the project is financed exclusively by “obligated entities”, namely economic operators that sell petrol and diesel fuel, who have long been obliged to replacepart of them with biofuel.

It is also worth mentioning the decree on the implementation of the current taxes and fees system for the industrial companies subject to a high consumption of natural gas. It has been drafted in  accordance with EU guidelines, in order to establish a system of facilities similar to the one involving energy-intensive companies and finance decarbonisation measures. The decree is particularly designed both for companies that use natural gas as raw material for a non-combustible use (including chemistry and fertilizers) and for companies with a gas consumption above a certain threshold. Such companies will take advantages of tariff exemptions in return for decarbonisation charges.

Furthermore the Minister has issued a decree scheme (so-called FER1), to be discussed with the Ministry of the Environment, which aims at developing a three-year incentive plan (2018-20) on onshore wind, solar photovoltaic, hydroelectric, traditional geothermal, landfill and sewage gas. Maximising the amount of renewable energy produced, relying on the greater competitiveness for these sources is the final goal. The access to incentives would be granted through competitive procedures based on economic criteria, in order to stimulate the reduction of costs on bills as well as efficiency in the supply chain of the components.