News & Blog

Italian Energy Authority sets incentives for small, non-interconnected islands

News & Blog

Delibera Arera Isole Minori

The Italian Energy Authority (Arera) has published a new set of incentive tariffs under Resolution 558/2018/R/efr – “Definition of the remuneration of electricity and heat produced from renewable sources in non-interconnected islands.”

The document lays out two options for determining the “base rate”:

  • option 1: amount related to the industrial price of diesel, differentiated by island and included between predetermined minimum and maximum values, broken down by classes of power;
  • option 2: fixed amount, predetermined, distinct by groups of islands and by classes of power.

An assessment by The Green Consulting Group found that the base tariff, which will serve to remunerate energy fed into the grid and be correlated to the cost of diesel fuel net of excise taxes or fixed over time, is fairly modest; still it will be interesting for investors as they work to reduce construction and financing costs for renewable plants.

The incentive for rebuilding roofs which contain asbestos is particularly interesting: in these cases there would be an increase of € 14 / MWh.

“The Arera resolution finally defines remuneration of electricity and heat produced from renewable sources on non-interconnected islands,” said Gianni Chianetta, scientific director of Greening the Islands. “This is an important step in starting the development of green projects on the 20 small Italian islands covered by the resolution. Greening the Islands is proud to have contributed to the document by presenting its observations to Arera during the public consultation. Our input was the result of joint work with companies, industrial associations and other stakeholders within the Greening the Islands Observatory. We hope we can start working as soon as possible for the sustainability of our islands in order to be able to export best practices around the world.”

We take processes apart, rethink, rebuild, and deliver them back working smarter than ever before.