A group of renewable energy associations, including WindEurope, have criticised Italy’s so-called clawback measures as posing a threat to the country’s energy transition.
Article 16 of the Italian Law Decree 04/2022 (“DL Sostegni ter”) “introduces discriminatory measures” between producers of electricity based on generation technology, creates market distortions undermining investor confidence and risks slowing down the energy transition process, the associations stated in an open letter to the Italian government.
They are calling on the Italian government to withdraw Article 16 and to “initiate a constructive dialogue to define effective and balanced solutions to tackle high energy prices”.
Article 16 introduces clawback measures against photovoltaic plants under Feed-in-Premium tariffs as well as for geothermal, hydro, photovoltaic and wind merchant power plants with capacity above 20kW.
The vast majority of such plants will receive a fixed reference price until the 31st December 2022, based on historical average zonal electricity prices in Italy.
Measures included in Article 16 will lead to significant wholesale energy markets distortions and on the behaviour of buyers and sellers in the market, highlighted the open letter.
“It might affect the free formation of prices as required by the Electricity Regulation (2019/943) setting a de facto unavoidable and administratively determined strike price for any possible future Power Purchase Agreements (PPAs) in contradiction with the Government’s stated goal to promote the conclusion of such contracts in the Italian power market.”
These complex and discriminatory measures will “jeopardise the Fit-for-55 targets”, stated the associations adding that Article 16 of the “DL Sostegni ter” is inconsistent with the proposals in the “European Commission toolbox for action and support” that the EU and its Member States can use to address the immediate impact of current prices increases, and further strengthen resilience against future shocks.