Italian solar incentives coming
The government, which has decided to scrap the existing generous production incentives for solar sector from June, has been drafting a new support scheme amid heated debate in the industry and investor concerns about the sustainability of their business.
The decree will outline a transitional period lasting until the end of this year while the new rules, modeled on Germany's support scheme, will come in force from 2012, Saglia told reporters on the sidelines of a parliamentary hearing.
Italy's biggest solar industry body GIFI and the country's largest renewable energy lobby APER have been favorable to the so-called German model, under which incentives are automatically reduced once installed capacity reaches a certain amount.
Italy, one of the world's fastest growing solar markets, has attracted investors ranging from families to major banks and investment funds with generous incentives that, the government says, have become too heavy a burden for consumers.
Italy has drawn the world's biggest makers of photovoltaic panels that turn sunlight into power, such as China's Suntech Power Holdings Co, Trina, Yingli Green Energy and U.S. firm First Solar.
Italy can install more than 20,000 megawatts of photovoltaic capacity by 2016 — enough to cover 10 percent of national power needs — if it adopts a German-style support scheme, GIFI said in a statement.
GIFI, a key party in talks with the government on new incentives, said it has proposed a transitional regime for the rest of 2011 with monthly cuts in feed-in-tariffs — a key incentive — starting from October.
In a sign of an alignment of the industry position with the government plans, GIFI has also proposed the tariffs be reduced on an annual basis, under a German model, from 2012.
Related News
California Legislators Prepare Vote to Crack Down on Utility Spending
LOS ANGELES - California's legislators are about to vote on a bill that would impose stricter regulations on how utility companies spend the money they collect from ratepayers. This legislation directly responds to the growing discontent among Californians who are already grappling with high electricity bills, which can be partly attributed to wildfire prevention efforts.
Consumer rights groups have been vehemently critical of how utilities have been allocating customer funds. They allege that a substantial portion of this money is being funnelled into lobbying efforts and advertising campaigns that yield no direct benefits for the customers themselves.
The proposed bill…
