Italy’s 15th renewables auction allocated 410.6 MW of capacity, awarding 322.2 MW to solar projects across 57 locations. The auction, led by Gestore dei Servizi Energetici (GSE), also awarded 88.4 MW to two wind projects, supporting Italy’s renewable energy goals.
Solar Power Dominates Italy’s 15th Renewables Auction
Italy has reinforced its commitment to renewable energy in its 15th renewables auction, allocating 410.6 MW of capacity with a strong focus on solar projects. The event, held by the state energy agency Gestore dei Servizi Energetici (GSE), highlighted solar energy’s growing role in the country’s clean energy strategy.
In this latest round, the Italian government allocated 322.2 MW of photovoltaic (PV) capacity across 57 locations, underscoring the strong demand for solar energy. The approved projects vary significantly in scale, ranging from 1.7 MW to 40.7 MW, and show a wide geographic spread.
The auction also awarded 88.4 MW to two wind projects. While this capacity is smaller than the solar allocation, the inclusion of wind power underlines Italy’s balanced approach to diversifying its renewable energy mix.
Bidding was highly competitive, with developers offering discounts from 2.01% to 5.35% off the ceiling price of €0.07778 ($0.08272) per kWh. The lowest bid of €0.07384 per kWh came from a 5 MW solar project in Ancona, central Italy.
This competitive pricing reflects the steady decline in solar energy costs, a trend that benefits developers through lower project expenses and consumers through more affordable electricity.
Comparing Past Auctions: Growth in Solar and Wind Allocation
For comparison, the 14th auction, finalized in June 2024, delivered nearly 300 MW of new renewable capacity from wind, solar PV, and hydroelectric projects. Solar power accounted for 145.5 MW across 37 locations. Bidding in that round saw discounts between 2% and 5.5% off a €0.07746 per kWh ceiling price, with the lowest bid at €0.0732 per kWh. A total of 243.3 MW was awarded through the tender process, while an additional 52.6 MW was placed in registry enrollment.
The 13th auction in February 2024 was even more substantial, with GSE allocating 352 MW of solar power across 62 projects and 643.9 MW to 15 wind projects. These larger allocations demonstrate GSE’s flexibility in adjusting renewable energy targets based on market conditions and demand.
Going further back, the 12th auction in October 2023 awarded a smaller capacity of 48 MW in solar power and 10 MW in wind. Discounts in that round were minimal, ranging from 2% to 2.1% off a lower ceiling price of €0.065 per kWh, illustrating how market dynamics can fluctuate.
Future Outlook for Italy’s Renewables Auctions
The GSE plans to hold another renewables auction on July 26, 2024. Future rounds are expected to attract even more competitive bids as developers strive to secure project incentives. Italy’s auction model also continues to attract foreign investment, providing a boost to the local economy and fostering clean energy growth.
Each auction round brings more renewable capacity online, underscoring Italy’s firm commitment to its clean energy targets. This ambition aligns with the European Union’s broader environmental goals, as Italy aims to generate a significant portion of its electricity from renewable sources and reduce its dependence on fossil fuels by 2030.
The 15th renewables auction, with its allocation of 322 MW in solar power, marks another significant step on Italy’s journey toward a greener future. Through its consistent auction model, Italy is successfully increasing its renewable energy capacity, lowering energy costs, and building a more sustainable environment.
