The so-called “FER1 Decree” enacted in 2019 provides to renewable energy plants incentives of about €1 billion per year and aims at supporting the development of approximately 4.8 GW of generating capacity until 2021. During the final three rounds in 2021, the contracted capacity will be 2,3 GW. Sources benefiting from the scheme include onshore wind, solar PV, hydroelectric and sewage gases. The government expects that it will allow for the construction of new plants with a total capacity of about 8,000 MW with investments estimated to be in the region of €10 billion.

This article has been updated in December 2020 to reflect the latest legislative updates implemented by the Italian authorities to address the consequences of the spread of the COVID-19.

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