Italy aims to raise €1.5 billion from green energy clawback

Date:

A document showed that Italy is expected to raise about 1.5 billion euros ($1.7 billion) from a plan to withdraw profits from solar and clean power producers to curb rising energy prices.

The measure, part of an Italian government decree that went into effect last month, must be approved by parliament within 60 days or expire.

Advertisement

Since last July, Rome has set aside nearly 10 billion euros to ease the surge in retail energy bills that have left many homes and businesses gasping for air.

The government has said the move will affect solar power plants, benefiting from generous fixed-tariff subsidies on top of higher market prices because of the surge in the gas crisis. This subsidy costs consumers about 6 billion euros per year on their energy bills.

But many producers are not in favour of this move; lobby group Italia Solare claims it will pose a severe threat to the energy transition in Italy and Europe.

Italy is looking forward to installing at least 8 gigawatts of new renewable capacity each year by 2030 to meet climate goals for the betterment of the country, and developers worry the mechanism could slow progress.

In 2008, a scheme was launched by Rome in 2008 to recover profits from rising oil prices, but it was ruled unconstitutional in 2015.

The clawback scheme applies to solar power producers with a capacity of more than 20 kW, which receive incentives under the pre-subsidy scheme.

Advertisement

It would also be imposed on non-subsidized renewable energy plants, such as hydroelectric plants, which benefit from higher market prices but do not have to bear the costs of increased gas prices and carbon allowances.

In a recent report, Italian broker Equita said regional utilities A2A and Iren (IREE.MI) were among the companies most impacted, with about 3% of core earnings affected.

The broker said there was practically no impact for Enel, one of the world’s biggest green energy companies and wind player ERG (ERG.MI) since they had sold forward production.

Share post:

spot_img

Popular

More like this
Related

Total Energies halted its investments in the Adani Group

Total Energies said it would no longer invest $4 billion with the Adani Group in a green hydrogen project.

Dominica: Parliament discusses the growth of the country’s people

The House of Assembly conducted the first meeting of the 11th Parliament's first session on February 7, 2023.

British Banks received billions to cover COVID loan loss

British banks have received more than £4.4 billion from taxpayer money to cover defaults on the £77 billion of state-guaranteed loans.

Pakistan: Crimes against Ahmadiyya Muslims are increasing

In Pakistan, crimes are often committed against the Ahmadiyya Muslim community by Muslim community members, gangs, and even the police.