EC allows Italy to extend EUR 1.7bn in state aid to agrivoltaics

The European Commission (EC) has given the go-ahead to Italy for its EUR-1.7-billion (USD 1.82bn) state aid scheme targeting dual-use projects combining solar power generation and agricultural activities, better known as agrivoltaic plants.

The Commission has determined that this measure is necessary and appropriate, while also being proportionate. In addition, it comes with the necessary safeguards.

The scheme in question envisages the provision of EUR 1.1 billion in the form of investment grants that cover up to 40% of the eligible investment costs, and EUR 560 million in 20-year incentive tariffs, to be awarded in a competitive bidding process on a pay-as-bid rule. More specifically, the tariffs will take the form of two-way contracts for difference (CfDs), with support covering the difference between the incentive tariffs and the energy prices.

It has been estimated that the particular measure will support the construction and operation of new agrivoltaic plants totalling 1.04 GW, which would be enough to generate at least 1,300 GWh per year. They must become operational before June 30, 2026.

The state aid will be made available until the end of 2024, in part through Italy’s Recovery and Resilience Facility (RRF).

(EUR 1.0 = USD 1.069)

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