On 28 February 2025, the RES Decree X Transitionalsigned by Ministry of the Environment and Energy Security (MASE). The measure introduces a temporary support scheme for energy production from mature renewable sourcesvalid until 31 December 2025with a total budget of EUR 9.7 billion.
The text was approved by the European Commission on 17 December 2024, in line with the temporary state aid rules, and received a favourable opinion from theARERA. The mechanism was called 'transitional' pending the introduction of the RES Decree X finalexpected for the period after 2025.
Sources eligible for incentives
The following types of installations are eligible for the mechanism:
- Photovoltaicsincluding agri-voltaic systems and on bodies of water;
- Wind power onshore;
- Hydroelectricwith precise environmental constraints;
- Residual gas installations from purification processes.
Incentive quotas
The total incentive power quota for the transitional period (i.e. until 31/12/2025) is 23.65 GWsubdivided as follows:
- 3 GW for installations with power up to 1 MWwith direct access;
- 14.65 GW for installations with power greater than 1 MWthrough competitive auctions;
- Any additional quotas defined by the implementation notices of the GSE;
Incentive mechanism: the Contract for Difference (CfD)
The decree introduces the application of a Two-way Contract for Difference (CfD) duration of 20 years:
- If the market price (MGP) è lower at the strike price, the GSE compensates the producer;
- If the market price is upperthe producer returns the difference;
- Only the 95% of energy produced benefits from the CfD, the remaining 5% is exposed to the market.
Access modes
- Plants with an output of more than 1 MW (direct access):
- Automatic access if they meet the technical and regulatory requirements
- Strike price determined and periodically updated by ARERA
- Plants with a capacity of 1 MW or less:
- Access through competitive auctions with downward procedures managed by the GSE;
- Base price: 80 €/MWhwith minimum limits of 65 €/MWh and maximum of 95 €/MWh;
- Participants must submit:
- Economic offer;
- Technical and authorisation documentation;
- Provisional deposit5% of the investment cost;
- Final bond (if awarded): 10%;
Additional bonuses to the strike price for photovoltaics:
- +27 €/MWh for installations that remove and replace asbestos or eternit roofing;
- +10 €/MWh for installations located in Northern Italy;
- +4 €/MWh for installations in the Central Italy;
- +5 €/MWh for installations on stretches of water.
Energy valorisation modes
- Installations with an output of 200 kW or lessenergy is valued by the producer on the market; the GSE intervenes to compensate for any differences (positive or negative) with the MGP price.
- Plants with an output of more than 200 kW: the GSE directly provides for the withdrawal and sale, disbursing a all-inclusive tariffor it can apply on request the regime for installations with a power output of more than 200 kW.
Expansions and revamping
Access to incentives is also allowed for interventions of:
- Revamping of existing installations;
- Expansion of plants already in operation.
For the new installed power is applied a reduction coefficient on the incentiveuntil 10% compared to completely new installations.
Other technical features
- La nominal power of the installation is defined as the minimum between DC power (modules) and AC power (inverter);
- Installations must meet the requirements of connection, authorisation, financial soundness and environmental eligibility.
Exclusion Criteria
They are not eligible for incentives:
- Installations that have started work prior to participation in the auctions;
- Companies in financial difficulty;
- Subjects who must returning state aid illegitimate;
- Projects that do not meet environmental regulations or technical requirements.
Priority criteria in case of oversubscription
If requests exceed the quota, preferential criteria will be applied such as:
- Removal of asbestos roofing;
- Realisation in suitable areas;
- Upgrading of existing facilities;
- Presence of storage systems.
Next steps
Le first public auctions should be launched by spring 2025. The operating rules and calls for tenders will be published by the GSE in the coming weeks.
The RES Decree X Transitional represents a concrete and time-limited opportunity to accelerate the energy transition in Italy. With stable incentives, simplified access for plants above 1 MW and targeted premiums, the decree offers a favourable framework for the expansion of renewables, especially for mature projects ready to start by the end of 2025.
For further information or assistance in participating in the mechanisms provided for by the decree, the Regran team is at your disposal.
Official Sources
- RES Decree X Transitional - MASE (Ministry of the Environment)
- GSE - Gestore dei Servizi Energetici
- Specialist portals