Sunday, June 23, 2024

Support scheme for Italian floating offshore windfarms approved by EU

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The European Commission has given the green light to Italy’s plans to add 4,590 MW of new renewable energy capacity, with a focus on offshore wind and floating wind projects. Commission executive vice president for competition policy, Margrethe Vestager, expressed that this scheme will enable Italy to support the production of renewable electricity from various technologies, including innovative ones.

Vestager emphasized that the initiative will assist Italy in reaching its emissions-reduction and electricity production targets while contributing to the objectives of the European Green Deal. These efforts are aimed at reducing dependency on Russian fossil fuels and accelerating the green transition. The support scheme, approved under EU State aid rules, aligns with the strategic goals of the European Green Deal, all while ensuring fair competition.

Italy informed the Commission of its plans to implement a scheme supporting electricity production from renewable sources until December 2028. The financing for this scheme will come from a levy included in the electricity bills of final consumers. The program will facilitate the construction of emerging technologies, such as floating offshore wind, geothermal energy, new solar forms, tidal, and other marine energies, along with biogas and biomass.

To incentivize renewable energy producers, the scheme will utilize a two-way contract for difference for each kWh of electricity fed into the grid. This structure aims to provide stability in pricing for renewable energy producers while preventing overcompensation during periods of high reference prices. The goal is for the new power generation facilities to become operational within the next 31 to 60 months.

This initiative showcases Italy’s commitment to sustainable energy production and aligns with the broader European effort to transition towards cleaner energy sources.

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