- Italy allocates EUR 1.7 billion for solar PV projects integrated with agriculture.
- Incentives aim to diversify energy production and promote sustainable farming.
Italy’s government decreed on Tuesday an allocation of EUR 1.7 billion (USD 1.82bn) for solar photovoltaic (PV) projects integrated with agriculture, which will be targeting 1.04 GW capacity.
The aim is to diversify energy production and promote sustainable farming practices, with an operational target set for June 2026. Under the new regulations, direct grants from Italy’s Recovery and Resilience Facility (RRF) will cover up to 40% of investment costs.
Tariff incentives will be available based on electricity injected into the grid. This will be through two-way 20-year contracts for difference (CFDs) to bridge the gap between incentive tariffs and energy prices. Competitive bidding determines the allocation of these contracts.
The Ministry of Environment and Energy Security (MASE) will approve funding mechanisms and timelines, expected within 15 days. Followed by a tender for CFD contracts within 30 days.
Projects up to 1MW in size will receive an allocation of around 300MW. Proposed by agricultural entrepreneurs, the remaining 740 MW is reserved for solar PV systems of various scales.
The European Commission (EC) endorsed Italy’s state aid scheme in November, approving this initiative. The convergence of renewable energy with agriculture signifies a progressive step towards energy independence and sustainable growth, underlining Italy’s commitment to a greener future.