The European Commission (EC) has granted approval to Italy for its EUR 1.7 billion state aid initiative, targeting dual-use projects that integrate solar power generation with agricultural activities, commonly known as agrivoltaic plants.
The Commission, after careful consideration, has deemed this measure necessary, appropriate, and proportionate, highlighting the presence of essential safeguards. The approved scheme involves EUR 1.1 billion allocated as investment grants, covering up to 40% of eligible investment costs, and EUR 560 million designated for 20-year incentive tariffs.
The latter will be awarded through a competitive bidding process, employing a pay-as-bid rule. Specifically, these tariffs will be structured as two-way contracts for difference (CfDs), providing support for the variance between the incentive tariffs and energy prices.
The initiative is expected to facilitate the construction and operation of new agrivoltaic plants, with a total capacity of 1.04 GW. This capacity is anticipated to generate a minimum of 1,300 GWh annually, with the condition that these plants become operational before June 30, 2026.
The approved state aid will be accessible until the conclusion of 2024, facilitated in part through Italy's Recovery and Resilience Facility (RRF). This move aligns with broader efforts to enhance sustainability and promote renewable energy projects within the European Union.
