The FER X Decree, which is currently under discussion and debate, aims primarily to boost electricity production through renewable sources, supporting the energy transition toward full decarbonization by 2030. However, it has generated both expectations and uncertainty within the sector.
Francesco Passafiume, Product Manager at PowerSolutions EMEA, asserts that the decree will bring significant changes to the renewable energy market and that it «will improve the accessibility of solar energy prices and promote the accelerated growth of the sector.»
“The FER X decree reduces the investment costs of solar plants to encourage the construction of new infrastructure. It also eliminates market coefficients, but introduces differentiated tariffs for geographical areas in Italy, partly taking into account different solar radiation zones,” explains Passafiume.
Incentives and Simplification: The Sector Calls for Administrative Agility
One of the critical points that generates high expectations in the industry is the simplification of administrative procedures and greater regulatory clarity.
According to Passafiume, with the FER X decree, authorization times for projects are expected to be considerably reduced, allowing developers to move forward more quickly.
Bureaucratic slowness is a significant barrier for the sector. “This implies the adoption of several measures aimed at reducing regulatory obstacles and speeding up bureaucratic processes, thereby facilitating the launch of projects. This deep simplification is essential to support the rapid expansion of the market and meet the decarbonization targets set for 2030,” he emphasizes.
However, there are differing views on this matter, as industry associations point out that the legislative decree could “complicate” rather than simplify the process of obtaining project authorizations, mainly due to a lack of coordination between the authorization procedures and the grid connection processes. It is worth noting that there are more than 300 GW of connection requests awaiting updates.
FER X Auctions: Negative Impacts from Delays
On the other hand, the financial incentives proposed are a key component of the FER X decree, as it introduces grants and economic support mechanisms for renewable plants.
“The decree will create more attractive and competitive financial incentives, making investments in the renewable energy sector more appealing to companies and individuals,” says Passafiume, adding that it is expected to reduce investment costs in solar plants and support the adoption of new innovative solutions.
However, delays in the auctions could have harmful consequences for the renewable industry. A strict auction timetable is essential to maintain investment flow.
Passafiume warns that if the auctions are not held on time, investors could lose interest or face uncertainties regarding the economic viability of their projects. “A delay in the auctions would impact the renewable industry, leading to increased costs, inability to invest, market uncertainty, and a delay in achieving decarbonization targets,” he points out.
Regulatory Consistency with the Suitable Areas and Environmental Decrees
FER X is part of a broader regulatory framework, which also includes the Suitable Areas Decree and the Environmental Law Decree.
The Suitable Areas Decree establishes the areas where renewable plants can be developed, simplifying the licensing process for plant installations.
Meanwhile, the Environmental Law Decree ensures that the development of clean energy is compatible with environmental protection.
Passafiume maintains that this regulatory consistency is key to creating a favorable environment for renewables: “It must be applied in coordination with the other decrees to ensure the right balance. FER X is an important step in the development of renewables in Italy.”
“However, its implementation and enforcement will be crucial to its success: only by overcoming these challenges will it be possible to create a stable and favorable regulatory environment for investment,” he emphasizes.
MACSE Decree and the Push for Energy Storage
Another regulation that is generating expectations in the sector is the MACSE (Energy Storage Capacity Acquisition Mechanism).
MACSE complements FER X by promoting the necessary infrastructure for a flexible and stable energy system, especially relevant for the integration of intermittent renewable energies like solar and wind.
Through this mechanism, a significant expansion in storage capacity is expected, helping balance supply and demand on the grid, according to Passafiume, who notes: “It will help make the electrical system more flexible, facilitating its management. It is expected to open the energy storage sector to investment, providing long-term incentives through competitive contracts.”
Among the incentives offered by MACSE are capital grants, feed-in tariffs, tax breaks, and long-term contracts for storage projects, ensuring competitive profitability in the sector. According to Passafiume, these benefits are essential to attract investments and enable the introduction of new technologies: “Grants and tax breaks, combined with long-term contracts, will attract the interest of many companies and small investors, fostering business growth and innovation.
0 comentarios