Italy allocates 357.2MW of PV in the latest renewable energy auction

Recently, the Italian energy agency Gestore dei Servizi Energetici (GSE) allocated 1,001 MW of renewable energy capacity for projects above 1 MW in its 13th renewable energy auction, of which GSE awarded a total of 357.2 MW of photovoltaic (PV) capacity at 62 sites, with PV projects ranging in size from 1 MW to 37.4 MW, ranging in size from 1MW to 37.4MW.

Developers offered maximum discounts ranging from 2.1% to 6.39% on top of the auction cap price of €0.0775 ($0.0836)/kWh. One of the lowest bids was €0.0725/kWh for an 18.9MW PV project in the province of Vercelli in northern Italy.

In the 12th renewable energy auction, which ended at the beginning of October 2023, the GSE allocated a total of 48MW of installed PV capacity. Developers offered discounts ranging from 2% to 2.1% on top of the auction cap price of €0.065 ($0.068)/kWh. The lowest bid was €0.0636/kWh for a 9.7MW solar facility in the southern Italian province of Campobasso.

According to data from Italian transmission system operator Terna S.p.A. Power Statistics Report, Italy added 5.2GW of new PV capacity in 2023, up about 108% from 2.5GW of new PV capacity added in 2022, of which 724MW was added in December, a year-on-year increase of 153%.

Currently, the total number of projects waiting for grid approval in Italy has reached 315GW, with wind and solar projects accounting for more than 60% of the total. Most of these are concentrated in the southern region where wind and solar resources are better and land supply is abundant and cheap. The northern and central regions of Italy have more than half of the population and most of the industrial and commercial facilities, are the main load centers for electricity consumption. The transmission channel between the north and the south is very limited. The grid plans to build a 500kV ultra-high voltage line, which is expected to be put into operation in 2035, and it is difficult to alleviate the pressure of electricity consumption in the north in the short term.

The Italian PV market has shown strong growth in recent years, especially with a significant increase in PV capacity allocated in renewable energy auctions. Despite a highly competitive market, developers are offering varying degrees of discounts, demonstrating the market's dynamism and attractiveness. However, grid connection bottlenecks remain a challenge and require more time and investment to resolve. With continuous technological advances and policy support, the Italian PV market is expected to see even broader growth prospects.

Seraphim is a Tier 1 solar module manufacturer, listed by BNEF. We research, develop, produce, and sell solar PV products since 2011.

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