Italy is considering changes to its new incentive scheme for renewable energy production including a hike to the cap it previously placed on solar power support as it seeks to head off criticism from the solar industry and the European Union, according to a document seen by Reuters.
Earlier this year the government announced a plan to scale back production incentives to the photovoltaic and other renewable energy sources to ease the burden on consumers, who pay for support with their power bills.
But operators complained the decree threatened to impact investments and make them less competitive because of increased bureaucratic costs. Regulatory uncertainty has also led banks to review their funding of renewable projects.
According to a draft document discussed by the government and Italian local authorities, the annual cap for incentives for solar power production could be lifted to 759 million euros ($953.5 million) from a previous 500 million euros.
The document also said plants up to 100 kilowatts, and not 12 kilowatts as previously planned, could be exempted from having to log on to a register, which was introduced to keep a close check on the growth of the industry.
The government still needs to approve the changes.
On Tuesday, the European Union Commission welcomed Italy's plans to reform the incentives scheme for renewable energy but said bureaucratic procedures in the scheme needed to be looked at.
With generous incentives in place since 2007, Italy's solar market has become the world's second-biggest after Germany and was the fastest growing market in 2011.
But as solar installation demand slows some companies have started looking to new markets, especially in Asia, which is expected to overtake Europe as the growth leader in the next five years.
Enel Green Power, Italy's biggest renewable energy company, has swung its focus away from its home country to foreign markets.
A sharp fall in Italy's solar growth is bad news for major solar equipment makers such as Chinese group Suntech Power Holdings, Trina Solar, Yingli Green Energy Holding and U.S. firms First Solar and SunPower Corp.
Source: http://in.reuters.com/article/2012/06/07/italy-renewables-idINL5E8H783N20120607
Earlier this year the government announced a plan to scale back production incentives to the photovoltaic and other renewable energy sources to ease the burden on consumers, who pay for support with their power bills.
But operators complained the decree threatened to impact investments and make them less competitive because of increased bureaucratic costs. Regulatory uncertainty has also led banks to review their funding of renewable projects.
According to a draft document discussed by the government and Italian local authorities, the annual cap for incentives for solar power production could be lifted to 759 million euros ($953.5 million) from a previous 500 million euros.
The document also said plants up to 100 kilowatts, and not 12 kilowatts as previously planned, could be exempted from having to log on to a register, which was introduced to keep a close check on the growth of the industry.
The government still needs to approve the changes.
On Tuesday, the European Union Commission welcomed Italy's plans to reform the incentives scheme for renewable energy but said bureaucratic procedures in the scheme needed to be looked at.
With generous incentives in place since 2007, Italy's solar market has become the world's second-biggest after Germany and was the fastest growing market in 2011.
But as solar installation demand slows some companies have started looking to new markets, especially in Asia, which is expected to overtake Europe as the growth leader in the next five years.
Enel Green Power, Italy's biggest renewable energy company, has swung its focus away from its home country to foreign markets.
A sharp fall in Italy's solar growth is bad news for major solar equipment makers such as Chinese group Suntech Power Holdings, Trina Solar, Yingli Green Energy Holding and U.S. firms First Solar and SunPower Corp.
Source: http://in.reuters.com/article/2012/06/07/italy-renewables-idINL5E8H783N20120607
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