Italy to allocate 10 GW of PV under new FerX incentive scheme

<p>Italy&#8217;s Ministry of Environment and Energy Security (MASE) has published Decree 194/2026, setting out the final version of the FerX mechanism. The measure, which follows the EU’s approval of the mechanism in June, entered into force on Aug. 7 and applies to solar, wind and hydropower plants, as well as facilities for treating residual gases.</p>

<p>For photovoltaic plants, the decree establishes a 10 GW capacity quota. The reference strike price is set at €80 ($92.4)/MWh. The decree provides two flexibility thresholds for plants participating in competitive bidding: the price may rise to €95/MWh (upper strike price) under particularly high-cost conditions, or fall to €65/MWh (lower strike price) under particularly low-cost conditions.</p>

<p>Two additional premiums are available: €27/MWh for photovoltaic systems installed to replace Eternit or asbestos roofing, and €10/MWh for systems installed on bodies of water.</p>

<p>A safeguard clause limits simplified access for small-scale systems. The mechanism for plants with a capacity of up to 1 MW will cease to apply on Dec. 31, 2030, or 60 days after the 10 GW capacity quota is reached, whichever comes first.</p>

<p>Plants of up to 1 MW that begin construction after the decree enters into force will have direct access to the support mechanism without having to participate in competitive bidding. For this capacity segment, the Regulatory Authority for Energy, Networks and Environment (ARERA) must define the award prices within 90 days of the decree entering into force.</p>

<p>For plants larger than 1 MW, participation in competitive procedures is mandatory. The mechanism is not available to projects for which construction work began before the application was submitted.</p>

<p>For plants larger than 10 MW subject to a single authorization (AU), the decree introduces an expedited project assessment procedure. Within 30 days of the authorization being issued, Italian energy agency Gestore dei servizi energetici (GSE) must issue an opinion to the project proponent confirming whether the project is eligible to apply for the mechanism.</p>

<p>The decree requires MASE, based on data provided by Terna and the GSE, to periodically update the quotas and coefficients specified in the tender notices, at least once every two years.</p>

<p>PV plants that secure a successful ranking must enter into operation within 36 months. The decree specifies that this deadline excludes any periods of downtime caused by <em>force majeure</em> during construction of the plant and its associated infrastructure.</p>

<p>In the event of a delay, the awarded price will be reduced by 0.2% per month for the first nine months and by 0.5% per month for the following six months, for a maximum total delay of 15 months. If the delay exceeds this limit, the GSE will revoke the plant’s ranking and call in the final performance bond. If the plant is subsequently admitted to a support mechanism, the awarded price will be reduced by a further 5%.</p>

<p>Within 60 days of the decree entering into force, MASE must approve, based on a proposal from the GSE, the operational rules for accessing the mechanism. Within the following 30 days, the GSE must publish the public notice for the submission of preliminary qualification applications.</p>

<p>The decree also allows plants located in neighboring countries to participate, provided an agreement is in place between the relevant country and Italy.</p>

<p>Access to the FerX mechanism may be combined exclusively with one of the following measures: capital grants of up to 40% of the investment cost for newly constructed plants; guarantee and revolving funds; or tax incentives in the form of tax credits or deductions from business income for investments in machinery and equipment.</p>
<p>The post <a href="https://www.pv-magazine.com/2026/08/10/italy-to-allocate-10-gw-of-pv-under-new-ferx-incentive-scheme/">Italy to allocate 10 GW of PV under new FerX incentive scheme</a> appeared first on <a href="https://www.pv-magazine.com">pv magazine Global</a>.</p>