2023-11-10 16:51:49
The aid will finance 40 percent of the costs with 1.1 billion euros. The other 560 million euros. will be allocated by bidding for the lowest incentive tariff
The European Commission has approved a €1.7 billion Italian scheme, provided in part through the Recovery and Resilience Facility (“RRF”), to help build agrovoltaic installations. The measure is part of the strategy of Italy to reduce greenhouse gas emissions and to increase the share of renewable energy in line with the EU’s strategic objectives related to the EU Green Deal.
Photovoltaics on the roof of a Bulgarian greenhouse
The State aid scheme, which will run until 31 December 2024, will be partially financed through the RRF following the Commission’s positive assessment of Italy’s recovery and resilience plan and its adoption by the Council.
The scheme supports the construction and operation in Italy of new agrovoltaic plants with a total capacity of 1.04 GW and an electricity production of at least 1300 GWh/year.
Agrovoltaics allow the simultaneous use of the land both for the production of photovoltaic energy by installing solar panels and for carrying out agricultural activities.
Under the scheme, aid will be provided to agricultural producers cumulatively in the form of grants for investments with a total budget of 1.1 billion euros, covering up to 40% of eligible investment costs; and as incentive tariffs with an estimated budget of 560 million euros. They will be paid out during the operational phase of the projects over a period of 20 years. These rates will be determined through a competitive bidding process. The support will cover the difference between incentive tariffs and energy prices. In the event of high energy prices, a refund mechanism is in place so that any amount in excess of the incentive tariffs is repaid.
Projects will be selected through a transparent and non-discriminatory competitive bidding process where beneficiaries will compete for the lowest amount of the incentive tariff needed to implement an individual project. To benefit from the scheme, beneficiaries must start work before June 30, 2026.
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