The experience of feed in tariff in Italy. Results so far and middle term forecasts.

Transcription

1 The experience of feed in tariff in Italy. Results so far and middle term forecasts. Gerardo Montanino Director of Operations Department 23rd European Photovoltaic Solar Energy Conference and Exhibition Valencia, September 2nd,

2 2 Agenda GSE Gestore dei Servizi Elettrici Forecasts Conclusions

3 3 GSE Gestore dei Servizi Elettrici Ministry of Economic Development, also in consultation with Ministry of Environment MINISTRY OF ECONOMY AEEG Italian Regulatory Authority for Electricity and Gas Guidelines Ownership 100% Decisions SINGLE BUYER (AU) 100% Gestore dei Servizi Elettrici (GSE) 100% ELECTRICITY MARKET OPERATOR (GME) Purchase of electricity for small customers Promotion and incentives to Renewable Energy Sources Electricity Market Environmental Markets ( Green Certificates - White Certificates - CO2 Allowances)

4 4 GSE Gestore dei Servizi Elettrici Certifies and issues Green Certificates to power plants fed by Renewable Energy Sources (RES) Incentives photovoltaic (PV) plants through the conto energia (Feed-in Tariff) Incentivates Concentrating Solar Power Plants (CSP) through a specific Feed-in Tariff Manages net-metering and dedicated withdrawal of electric power from RES Incentives plants fed by RES and so-called assimilated sources as per Decree no. 6/92 of Interministerial Committee on Prices Releases Guarantee of Origin (GO) and RECS (Renewable Energy Certificate System) certificates to plants fed by RES Certifies co-generation plants GSE s Activities

5 5 The key elements of mechanism The PV support mechanism, foreseen by the Legislative Decree n. 387/2003, became operational in 2005; with the decision of The Regulatory Authority for Electricity and gas (AEEG), GSE is the implementing body for allocating the incentives. The New Decree of 2007 changed the criteria of the admission to tariff system, eliminated yearly power capacity caps and increased the power plants capacity eligible for incentives. The mechanism is based on an incentive proportional to the electricity produced by the PV plant. The cost of the incentive is covered by a component of the present electricity tariff structure. The tariffs, ranging between 36 and 49 cents/kwh, promote the small plants (distributed generation) and the architectural integration.

6 6 PV feed-in tariffs in euro cents per kwh for plants commissioned no later than the end of December 2008 PV PLANTS IMPIANTI FOTOVOLTAICI Potenza Capacity nominale dell impianto P (kw) 1 Not Non integrated integrato 2 Parzialmente Partially integrated Integrato 3 Integrated Integrato A 1 P < 3 0,40 0,44 0,49 B 3 < P 20 0,38 0,42 0,46 C P > 20 0,36 0,40 0,44 In addition, a further increase is granted for specific kind of plants (5%) and for plants with a capacity up to 20 kw, operating in net-metering system, in case of improving the energy efficiency of the annexed building (with a limit of 30%).

7 7 The minimum requested size of plant is 1 kw connected to the grid and commissioned after September 30 th 2005, following new installation, enhancement or complete plant substitution. The tariffs, fixed for 20 years, are added to: - revenues of energy fed into the grid if the system operator chooses the sale - saving on the bill in case of net-metering system (for the plants up to 20 kw). The tariffs will decrease in 2009 and 2010 by 2% each year for new applications and subsequent decrees will redefine the rates for the PV plants commissioned after 2010 The goal of cumulative power installed plants is 3000 MW within 2016

8 8 Latest regulation changes (Budget Law 2008) If system operators are local authorities, PV plants are automatically considered fully integrated notwithstanding their actual architectural characteristic. The capacity limit in order to operate within the net-metering system was raised from 20 up to 200 kw. The Minister of Economic Development and the Authority for Electricity and Gas (AEEG) have to update their Resolutions.

9 9 Additional changes for electricity sale to the grid introduced by Resolution n 280/07 of AEEG From the 1st of January 2008 GSE purchases the electricity produced by PV plants (paying the zonal hourly price) if the system operator doesn t operate through IPEX. For PV plants up to 1 MW there is a minimum guaranteed price for the first 2 million kwh/year: euro/mwh for the first 500 MWh/year euro/mwh from 500 to 1000 MWh/year euro/mwh from 1000 to 2000 MWh/year

10 10 FIRST DECREE - Level of implementation as of August 1st, 2008 NUMBER Capacity range Applications Under Of which Of which admitted construction completed commissioned 1 <= P < 20 7,176 4,986 4,009 3, < P <= 50 5,105 3,062 1, < P <= TOTAL 12,433 8,179 5,150 4,730 CAPACITY (MW) Capacity range Applications Under Of which Of which admitted construction completed commissioned 1 <= P < < P <= < P <= TOTAL

11 11 NEW DECREE - Level of implementation as of August 1st, 2008 APPLICATIONS Capacity range (kw) Number Capacity (MW) 1 <= P <= 3 5, < P <= 20 3, P > TOTALE 9,

12 12 NEW DECREE - Level of architectural integration of applications received by August 1st, % of capacity 9 MW; 18% 26% of capacity 13,6 MW; 27% Integrati Integrated Parz. Partially Integrati integrated Non Not integrati integrated 26,9 MW; 55% 56% of capacity Type of plant Number Capacity (kw) Integrated 2, Partially integrated 6, Not integrated Total 9,

13 13 Total results by August 1st, MW capacity for 13,942 commissioned plants N Totale Primo DM Nuovo DM 12/31/2007 6,057 4,003 2,054 13,942 9,214 4,728 MW 160,0 150,0 140,0 130,0 120,0 110,0 100,0 90,0 80,0 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0 feb-06 mar-06 apr-06 mag-06 giu-06 lug-06 ago-06 set-06 ott-06 nov-06 dic-06 gen-07 feb-07 mar-07 apr-07 mag-07 giu-07 lug-07 ago-07 set-07 ott-07 nov-07 dic-07 gen-08 feb-08 mar-08 apr-08 mag-08 giu-08 lug-08 ago-08 feb-06 mar-06 apr-06 mag-06 giu-06 lug-06 ago-06 set-06 ott-06 nov-06 dic-06 gen-07 feb-07 mar-07 apr-07 mag-07 giu-07 lug-07 ago-07 set-07 ott-07 nov-07 dic-07 gen-08 feb-08 mar-08 apr-08 mag-08 giu-08 lug-08 ago-08 Numbers Totale Primo DM Nuovo DM Capacity (MW) 12/31/ Total First Decree New Decree Total incentives distributed 48 million Euro ,0

14 14 Total plants commissioned by August 1st, 2008 Plants N 13,942 Capacity kw Average size 11,327 kw MW VALLE D'AOSTA PIEMONTE LOMBARDIA TRENTINO ALTO ADIGE VENETO FRIULI VENEZIA GIULIA LIGURIA EMILIA ROMAGNA TOSCANA MARCHE UMBRIA LAZIO ABRUZZO MOLISE CAMPANIA BASILICATA Capcity (kw) PUGLIA CALABRIA Numbe r SICILIA SARDEGNA N

15 15 Forecasts Estimates of total PV power plants commissioned by 2009 with PV feed-in tariff MW New Decree First Decree Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 GSE short term projections are based on the following principal assumptions: First Decree: around 55% of admitted applications will be carried out within 2008 and mid New Decree: we expect an average monthly commissioned capacity of 5 MW for 2008 and 15 MW for 2009.

16 16 Forecasts PV power installed in Italy New Feed-in First Feed-in No Feed-in cagr + 114% MW * 2009* *Best estimates The Compound Annual Growth Rate between 2006 and 2009 is expected to be around 114% due to the introduction of feed-in tariff programme.

17 17 Forecasts Incentives to be distributed with PV feed-in tariff by 2013 MW 1,800 Cumulative commissioned plants (MW) Annual incentives distributed (M ) M 1,200 1,500 1,500 1,000 1,200 1,

18 18 Forecasts Installed PV power under different scenarios Cumulative installed PV power under different scenarios Moderate Reference Advanced cagr +35% cagr +29% MW cagr +20% GSE forecast to 2016 are based on the following principal assumptions: Reference Scenario: 3000 MW official target at 2016 (New Decree) Moderate and Advanced Scenario: yearly market growth rate in line with similar support schemes in European Countries.

19 19 Conclusions General observations Italian incentives are among the highest in the world. Besides, thanks to good geographical position, especially in the South of Italy, plants achieve a high level of utilization (over 1500 hours/year). The authorization process is very long, with huge differences among regions (national guidelines will be issued soon). The private investors are concerned with long lag time for the connection to the grid and about difficulties for financing (collateral guarantee). The current cost of the turnkey plants are still higher than the European average.