Italy aims to raise €1.5 billion from green energy clawback


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.


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.


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.

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