Italy mulls transferring renewables incentives costs from bills to recovery plan

Italy wants to lower the prices of bills by transferring renewable energy incentive costs from bills to the national recovery and resilience plan. [Shutterstock/ kram-9]

Italy wants to lower the prices of bills by transferring renewable energy incentive costs from bills to the national recovery and resilience plan, Ecological Transition Minister Roberto Cingolani said during a meeting with the Senate Committee on Industry on Tuesday.

The minister proposed a plan worth €10 billion to combat the increase in energy prices and find a more structural solution to the problem instead of short-term solutions for each trimester.

“I don’t think we will be able to pull out cash every trimester for bills, as we have done so far. For our country, as for others in Europe, the time has come for a structural strategy,” said Cingolani.

The first general plan would include €3 billion from the securitisation of system charges on bills, €1.5 billion from ETS auctions, €1.5 billion from the reduction of incentives on photovoltaics, €1-2 billion from the cut in incentives on hydroelectricity, and €1.5 billion from long-term trading of renewables.

However, he stressed the importance of accelerating investments in renewables, creating new incentives through the National Recovery and Resilience Plan and ETS in the long term. To reach this result, Cingolani specified that “a pact of cooperation between the government and the regions, which manage the areas” is needed. “If not, it will not be possible to reach the objective of 70 new gigawatts of renewables by 2030″.

He also said that other reforms are necessary at the EU level.

Additionally, he explained the government is “looking at hypotheses to review rules of European markets, with the gradual movement of renewables on long-term trading markets, not linked to gas markets. But these are things we cannot do alone”. The minister affirmed the government’s intention to cut VAT on bills, a measure he told the committee that “must be addressed with the European Commission”.

(Eleonora Vasques | EURACTIV.com)

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