Italy Allocates 7.69 GW Solar Across 474 Projects In Auction

With a combined capacity of 7.69 GW, 474 new solar projects have been selected by the Italian government under their new Fonti di Energia Rinnovabile (FER) X programme, as part of their first auction. The auction also approved 940 MW of wind capacity across 29 projects, showcasing the dominance of solar as the lowest cost renewable now.

About the Auction

Italy’s management agency Gestore dei Servizi Energetici (GSE) organized the auction, where the country successfully allocated almost all of the available solar capacity, with winning solar bids averaging €56.825/MWh, with the top accepted bid at €62.675/MWh. Nearly the entire 8GW of solar capacity offered got subscribed – reflecting strong demand and confidence in Italy’s renewable – energy push and stepping up Italy’s 131 GW renewable energy target for 2030.

47 of the projects are larger than 50 MW, with the majority of solar projects of smaller capacities, 353 of them of 10MW or less, accounting for 74.5% of the solar projects approved.

Interestingly, in the wind sector 75.9% of projects are 10-50 MW in scale. Further over one-third involve renovation or repowering, to  deliver over half of 940 MW, while solar sees only one revamp case.

The biggest solar project is a 300 MW solar plant planned in Castel di ludica, Catana, Sicily. The auction’s completion means most bidders won awards, following September’s 12 GW renewable and 10 GW solar bids submitted to secure government CfDs (Contracts for Difference).

GSE Preference For EU Made Modules

GSE president Paolo Arrigoni says the agency is evolving into an enabler of Italy’s energy transition, yet the country has only 80GW of renewables operating against a 131 GW 2030 target. The second FER X auction aims to narrow this 51GW gap by awarding up to 1.6 GW   in the next option, with a minimum award of 200 MW. The agency has also offered premiums for high-efficiency EU-made modules. Elaborating on the benefits being provided to EU made cells and modules, GSE has shared that modules produced in the EU with a cell efficiency of 21.5% can receive a 2% premium in the next round of the auction, while modules with cells operating at a 23.5% efficiency can receive a 5% premium. Modules produced in the EU that use bifacial cells with HJT silicon or tandem cells of an efficiency at least 40% can receive a further 5% premium.