- Italian wind and solar auction was a surprise for the solar power industry here as solar won only one project out of 500 MW tendered
- Wind power laid claim to 495 MW while solar PV had to rest with 5 MW capacity
- The solar PV winner will set up the 5 MW project in Nuoro province of Sardinia island
- Tender itself was oversubscribed though as GSE received bids for 595 MW in the form of 26 projects
The results of Italy’s renewable energy auction launched by its energy agency Gestore dei Servizi Energetici (GSE) in September 2019 are out – and they won’t make the solar sector happy at all. Solar PV technology has secured only one project of 5 MW, while wind power won 495 MW out of 500 MW tendered.
The entire 500 MW capacity attracted the lowest winning bid at €48.65 per MWh and the highest winning bid reaching €66.50 per MWh, as per information shared by the GSE.
The PV winner was Solar Italy IX that will now set up the 5 MW project in Nuoro province on Sardinia island. It offered a bid that was 14.29% less than the capped tariff. The bid for another solar power project of 5.74 MW was not accepted. Wind power projects on the other hand won capacities ranging between 9.4 MW to 84 MW.
The 500 MW tender was oversubscribed attracting 595 MW of total capacity in the form of 26 projects. Winning developers will need to grid connect the projects within 31 months.
Back in July 2019, Italy signed the FER 1 decree to meet its National Energy and Climate Plan for 2030 focusing on PV, wind, hydro, and gas from waste technologies. S&P Global Market Intelligence stated back then that the country will award 8 GW capacity to produce around 12 TWh annually with an investment of €10 billion. Under the plan, Italy will be aiming to increase its solar power share from 22.9 TWh in 2018 to 26.3 TWh in 2020.