European Commission Encouraging Agrivoltaics In Italy

• Italy's plans to install 1.04 GW agrivoltaic capacity move forward after EU's approval 
• The European Commission has approved €1.7 billion in state aid scheme, to be partially funded under the RRF 
• Funding will be available for projects during their operational phase for 20 years, provided these become operational before June 30, 2026 

The European Commission has approved state financing for Italy to support the development of more than 1 GW solar PV capacity through agrivoltaics. It will enable the country to invest €1.7 billion, partially funded by the €191.5 billion Recovery and Resilience Facility (RRF). 

EU Commissioner Didier Reynders, in charge of competition policy, said, "It will contribute to the greening of the agricultural sector and to the transition to climate neutrality, in line with the EU Green Deal objectives." 

Under the approved measures, the country will support the construction and installation of 1.04 GW agrivoltaics capacity to generate a minimum of 1,300 GWh/year. 

The aid will be available for agricultural producers either as investment grants with a total budget of €1.1 billion covering up to 40% of the eligible investment costs, or as incentive tariffs with a budget of €560 million. 

Incentive tariffs for competitively selected projects will be paid on a pay-as-bid rule during the operational of the facilities for 20 years. These will take the form of 2-way contracts for difference (CfD) covering the difference between the incentive tariffs and energy prices. The commission explains that in case of high energy prices, there will be a claw-back mechanism to pay back any amount exceeding the incentive tariffs. 

The scheme will be in force till December 31, 2024 for projects that become operational before June 30, 2026. 

The commission found the scheme necessary and appropriate for Italy to meet the European and national environmental targets, facilitating economic activity by way of renewable energy production and agrivoltaic installations. 

"Moreover, it is proportionate as the aid is limited to the minimum necessary to trigger the investments," explained the commission. "The measure has an incentive effect, as the beneficiaries would not carry out the relevant investments without the aid." 

This approval from the EU follows €1.2 billion support scheme the commission cleared in July 2022 for Italy to back investments in agrivoltaics under a scheme that will run through June 30, 2026 (see Italy's €1.2 Billion Agrivoltaic Scheme Approved).