Energy Decree converted into law: highlights for RES.

The conversion law (Law 2 February 2024 no. 11, published in the Official Journal no. 31 of 7 February) of the Energy Safety Decree - Law Decree 9 December 2023 no. 181 (the "Decree") is entered into force today (8 Feb.). Gazzetta Ufficiale

Chapter I of the Decree, concerning "Measures about Energy", has been significantly modified and integrated by the conversion law and provides for measures regarding renewable energy sources (RES).

The provision of a contribution to be paid by owners of RES plants with a power capacity exceeding 20 kW (who acquire the authorization for the construction of a RES plant from 1 January 2024 to 31 December 2030) has been finally deleted.

In addition, at a glance we note the introduction of additional articles after article 4 of the Decree (till art. 4-octies), which provide significant innovations and amend also the provisions of Legislative Decree no. 199/2021 (implementing in Italy RED II Directive). Specifically, with regard to RES plants we can highlight:

1. the establishment of a new mechanism, alternative to reverse auctions and direct access for small plants for the access to future incentives, aimed at promoting investments for the production of electricity from RES. This mechanism provides, after competitive procedures coordinated with the storage capacity allocation procedures, for the execution of multi-year two-way contracts for difference between the GSE and the selected operators. The conversion law introduced art. 7-bis in Legislative Decree no. 199/2021 for this matter;
2. a priority criteria set for the participation in incentives mechanisms (whose decrees we are waiting for) for operators who carry out renovation works on existing photovoltaic plants built on agricultural areas which involve the construction of new plants or new sections of plant, measurable separately, on the same area and for the same surface of agricultural land originally occupied, with an increase of the overall power capacity. The conversion law of the Decree introduced letter e) bis) in art. 5, paragraph 5 Legislative Decree. 199/2021 for this matter. This refers to repowering interventions of PV plants on agricultural areas that accordingly will have the chance (priority) to access incentives.

Finally, it is worth noting the important amendments introduced in the Decree (paragraphs 9 sexies, sexties and octies, added in Article 9 of the Decree), concerning the authorization procedures for photovoltaic plants in "suitable" areas (pursuant to Article 20 of Legislative Decree no. 199/2021). Specifically, among other:

1. amendments to the PNRR Decree (Law Decree no. 41/2023 as converted into law): the threshold from which such projects are subject to national EIA has been increased from 20 MW to 25 MW and the threshold from which projects are subject to regional screening EIA has been increased from 10 MW to 12 MW;
2. amendments to Romani Decree (Legislative Decree no. 28/2011): article 4, paragraph 2 bis of Romani Decree has been modified, providing for an increase until 12 MW of the maximum threshold, equal to 10 MW till now, for the use of the PAS procedure (as per art. 6 Romani Decree) . The threshold of 10MW for the use of the PAS as provided under Article 6, paragraph 9 bis of the Romani Decree has been increased to 12 MW accordingly. From 12 MW ahead, the single authorization (AU) procedure will apply.Point 1 and 2 regard only PV plants in suitable area.

The news above are preliminary highlights of the Decree which has also the purpose to simplify procedures and promote RES investments. The conversion law of the Decree indeed sets for measures to be fully analyzed since it impacts on the main legislative acts regulating the RES and energy sector in Italy.

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