Italian Market Environment
Italy offers ideal conditions for solar power generation with solar radiation averaging between 1,100 kWh/m² in the north and 1,600 kWh/m² and even more in the south. However, Italy is only awarding 20 megawatts of photovoltaics in the fourth renewable energy auction. The Italian authorities included the photovoltaic projects in another tender for renewable energy, the volume of which, however, was not fully utilized.
The lowest bid in the tender was 6.819 cents per kilowatt-hour for a 10-megawatt solar farm.
All bids were slightly below the maximum price of 7.00 cents per kilowatt-hour.
The framework conditions for new investments are currently not given in Italy due to low electricity tariffs and poor financing options.