Italy’s energy agency has awarded 300 MW of solar capacity at 34 locations, but it only selected a 6 MW wind project in its latest auction. All developers offered a maximum discount ranging from 2% to 3.02% off the auction ceiling price of €0.065 ($0.07)/kWh.
The Gestore dei Servizi Energetici (GSE), Italy’s energy agency, allocated 306 MW of renewable energy capacity in the country’s latest renewable energy auction, for projects with capacities above 1 MW.
The GSE awarded 300 MW of solar capacity across 34 locations, but only one 6 MW wind project was selected in the exercise. Twenty-seven of the projects will have capacities of less than 10 MW, while the remaining eight projects will range in size from 11.8 MW to 53 MW.
The selected bidders for the solar plants included well-known Italian power suppliers such as Acea and Edison. Other bidders were special purpose vehicles without clear links to noted industry players.
All of the developers offered a maximum discount ranging from 2% to 3.02% from the auction ceiling price of €0.065/kWh. The lowest bid came in at €0.06036/kWh and was offered for a 7.8 MW solar project located in the province of Campobasso, in the Italian central region of Umbria.
The highest bid of €0.0637/kWh was submitted for 11 solar projects spread across the regions of Sardinia, Lazio, Emilia Romagna, Apulia, Piedmont, and Veneto. The bids were slightly higher or equal to those in the seventh renewable energy auction, when discounts ranged from 2.0% to 3.5%.
In the last procurement exercise, held in January, the GSE allocated 974.9 MW of renewables capacity, including 710.2 MW of solar. In the sixth auction, held in September 2021, the Italian authorities allocated 297 MW of solar power, with bids ranging from €0.0686/kWh to €0.0646/kWh. In the fifth procurement exercise, finalized in May, the lowest bid came in at €0.0685/kWh and was submitted for a 3.4 MW solar project.
Overall, only 32 MW of solar were allocated. In the fourth round of the tender scheme, solar secured 20 MW, while the lowest bid was €0.06819/kWh.
In the third renewables auction, held in October, the GSE assigned 95.5 MW of solar capacity across four locations. The lowest bid, submitted for a PV project, was €0.06490/kWh.
In the second renewables auction, only 19.3 MW of PV capacity was allocated across four projects. The lowest price of €56/MWh was offered for a solar project. In the first procurement round, only one 5 MW solar plant was awarded, along with 495 MW of wind capacity. The single PV project will sell electricity for €0.060/kWh.
Following the completion of the latest auction, the Italian authorities have allocated around 1.5 GW of PV through the nation’s tender program.
This post appeared first on PV Magazine.