1. EWEC 2007 Milan 7-10 May 2007 Policies and programmes Wind energy in Italy: national and regional policies, market development and future perspectives Luciano Pirazzi ENEA

2. National actions supporting electricity production from renewable energy sources Capital cost subsidies Law No. 308 was issued in 1982 (limited to 3 MW with a contribution up to 30% of eligible cost) Laws No. 9 and 10 were issued in 1991 (contribution up to 30-40% of plant cost)

3. National actions supporting electricity production from renewable energy sources Feed-in Tariff Provision No. 6/92 Issued by CIP (the Inter-ministerial Committee for Prices) in 1992 Premium tariff composed of two items: - avoided cost - incentive, granted over the first 8 years of plant operation

4. CIP 6/92 2006 rates for the first 8 years of operation for different renewable sources - hydropower plants with a reservoir, and run-of-river plants above 3 MW: from 20,87 €cent/kWh (peak hours) to 6,07 €cent/kWh off-peak hours - run-of-river hydropower plants up to 3 MW: 12,35 €cent/kWh -wind and geothermal plants: 14,94 €cent/kWh - PV, biomass and waste plants: 20,61 €cent/kWh

5. Mandatory quota and Tradable Green Certificate Legislative decree No. 79/99 Since 2001 a RES (Renewable Energy Sources) quota has been operating. Electricity producers or importers from non renewable sources exceeding 100 GWh must feed into the Italian grid, within the end of the subsequent year, an amount of RES electricity equalling a minimum quota of this non- renewable electricity. The RES electricity quota was originally 2%, but was subsequently raised by 0.35% a year: specifically, it was 2.35% in 2005 and 2.70% in 2006 and is 3.05 % in 2007). No quota has, as yet, been set for the following years.

6. Tradable Green Certificate To show compliance, obliged operators can either hand in TGC (Tradable Green Certificates) from their own RES plants, or buy TGC from other RES producers on the market. Qualified RES electricity producers get one TGC for each 50 MWh of their production over a term that was formerly 8 years, but has, since 2006, been extended to 12 years of plant operation. The sale of TGC brings them an additional income besides the proceeds from the sale of energy on the wholesale electricity market.

7. Green certificate Reference price TGC relating to the 2006 RES production was set (VAT not including) at 125.28 €/MWh by GSE (Gestore Servizi Elettrici) This value was calculated as the difference between: the average cost of CIP/6 electricity purchased by GSE in 2006 and produced from renewable plants The revenue resulting from the sale of the same electricity in 2006

8. Legislative Decree No. 387/03 (implementing EU Directive 2001/77/EC on RES promotion) Production of 76 TWh/y from RES by 2010 (corresponding to a share of 22% of gross electricity consumption) No specific target for any type of renewable technology Annual increase of the RES quota obligation Net-metering for renewable plants not exceeding 20 kW National targets are to be allocated among regions Permit for renewable plant construction has to be released by the region concerned, through a single authorisation involving all parties concerned, within 180 days

9. National targets 2,500 MW from wind by 2008-2012 (Italian white paper for the exploitation of RES) 25% of renewables into the electrical system by 2011 (new energy programme) Reduction in annual greenhouse emissions of 6.5% less than 1990 by 2008-2012

10. Regional policies Legislative Decree No. 112/98 Decentralization of administration Decision on RES plants must be taken at regional and local level As a consequence: Regions are in charge of evaluating wind projects in terms of environmental impact and all other relevant aspects, before authorizing the building of wind plants

11. Regional energy and environmental plan Wind energy has been included in many regional plans The Apulia, Sicily, Campania and Calabria regions are currently stimulating wind deployment Some regions have issued confusing rules in their wind guidelines as a consequence of the lack of: -national guidelines -establishment of obligation on regional governments to contribute in meeting national renewable energy commitments

12. Other regional support Financial support in capital cost to RES initiatives, through European structural funds, has been granted by some southern regions In particular, the Apulia, Campania and Sicily regions, have allocated financial resources towards various renewable projects at different percentage of eligible cost

15. Market share of wind turbine manufacturers at the end of 2006

16. Contribution by electricity producers from wind at the end of 2006

18. Wind farms ready to be connected to the grid or just connected 1 in the Salerno province (Campania) operated by FRI-EL 36 MW composed of 3 MW turbines 1 in the Lecce province (Apulia) operated by Inergia 36 MW composed of 2 MW turbines 1 in the Foggia province (Apulia) operated by IVPC 30 MW composed of 2 MW turbines 1 in the Foggia province (Apulia) operated by Fortore Energia 12 MW composed of 2 MW turbines 1 in the Foggia province (Apulia) operated by Fortore Energia 20 MW composed of 2 MW turbines TOTAL 134 MW

19. Trend Installation of large sized turbine from 1,5 MW to 3 MW Large variability of wind farms from a few MW to 84 MW New investors (also foreigners) Offshore initiatives Infancy stage

20. Future perspectives Quite good in the short time (the main developers have ordered aerogenerators for many MW) Some uncertainties and constraints still present in many regions have to be solved shortly in order to comply with European commitment Many developers have planned important investment in the medium term Repowering (replacement of old, small turbines with new and larger ones) will increase power capacity

21. Regions: Sardinia, Toscana, Marche, Umbria, Lazio, Abruzzo e Molise é # # # # # # # # # # # # # # # # # # SARLUX LARNO AURELA SLUCIA SUVERETO RUMIANCA ROMA SUD MONTALTO ROMAEST SELARGIUS ROMA NORD VILLANOVA PRESENZANO ROSARA VALMONTONE CEPRANO CAGLARISUD MONTALTO C.LE TORREVALDALIGA FIUME SANTO PIOMBINO TORREVALDALGANORD CODROGIANOS SGIACOMO LATINA LUCCIANA EDF # # # # # # TAVARNUZZE CALENZANO POGGIO A CAIANO S. BARBARA ACCIAIOLO LA SPEZIA ROSEN BARGI ROMA OVEST CANDIA LIVORNO ENERGIA MOLISE 120 -> 132 kV SAPEI – Sardinia – Mainland dc 500 kV link Substation 380/132 kV in Abbadia (MC) Grid development

22. Regions: Campania, Puglia e Basilicata 380 kV single circuit line Foggia - Benevento é # # BARI OVEST LAINO MONTECORVINO LARINO GALATINA TARANTO NORD BRINDISI PATRIA PRESENZANO GARIGLIANO S.M. CAPUA V. BRINDISI NORD BRINDISI SUD ANDRIA MIRANT S. SEVERO 400 MW ENERGIA TERMOLI 800 MW ENIPOWER BRINDISI 1170 MW FOGGIA BENEVENTO MATERA CANDELA 380 kV single circuit line Matera – S.Sofia Substation near Bari Substation near Vesuvio (NA) 380 kV double circuit line Montecorvino - Benevento S. SOFIA Grid development

23. Possible new substation 380/150 kV near Candela CASALVECCHIO PIETRACATELLA VOLTURARA ALBERONA ROSETO MONTEFALCONE COLLE SANNITA FOIANO CERCEMAGGIORE CAMPOBASSO PRESENZANO S.SOFIA BENEVENTO 2 BENEVENTO N. BENEVENTO IND. APICE FS ARIANO IRPINO SAVIGNANO FS FLUMERI ACCADIA LACEDONIA BISACCIA ASCOLI SATRIANO MELFI IND. EOS 1 TROIA TROIA ORSARA LUCERA AVELLINO AGIP DELICETO FOGGIA FOGGIA 380 KV FOGGIA FS FOGGIA IND. ANDRIA BARI O. TRINITAPOLI ALENIA ORTANOVA CERIGNOLA FS S.SEVERO FS S.SEVERO S.GIOVANNI ROTONDO MANFREDONIA P.D.R. CELLE S.VITO C.LE EDISON CANDELA MONTESARCHIO AIROLA BOVINO BOVINO FS CALITRI VALLESACCARDA To streghten remove transmission constraint FOGGIA O. Grid development in Campania and Puglia NEW 380 SUBSTATION

24. Regions Calabria and Sicily 380 kV double circuit line Sorgente-Rizziconi 380 kV single circuit line Chiaramonte - Ciminna CROTONE EDISON Simeri Crichi (CZ) – 800 MW EDISON Altomonte (CS) – 800 MW MONTECORVINO da declassare a 150 kV PISTICCI tratto da demolire SCANDALE FEROLETO 380 kV MUCONE 1 2 COSENZA CATANZARO VIBO VALENTIA REGGIO CALABRIA MATERA ROTONDA ROSSANO – 1600 MW MERCURE LAINO RIZZICONI EDISON Pianopoli (CZ) – 800 MW SORGENTE Grid development

25. Network development process The Development Plan is worked yearly out according to the planning scenarios, on the basis of:  Demand growth per each area  Development of new production units (Thermal + Wind)  Location of new generation on the territory  Signals from the power exchange

26. New transformers (MVA)14.850 2.840 0 17.690 New transformers (MVA) 14.850 2.840 0 17.690 Short-medium term Short-medium term 10.850 2.430 0 13.280 Medium-long term Medium-long term 4.000 410 0 4.410 Lines (km) 3.240 - 990 1.080 3.330 Short-medium term Short-medium term 2.320 - 260 890 2.950 Medium-long term Medium-long term 920 - 730 190 380 380 kV 220 kV 120-150 kV Total 380 kV 220 kV 120-150 kV Total 2006-2015 Network Development Plan in Italy Characterization of new investments

27. Difficulties in building new high voltage lines due to authorisation problems Authorization problems People opposition linked to increased (excessive) environmental sensitivity Difficulties in identifying new feasible routes due to intense human territorial penetration Lack of integration between electrical and territorial/environmental planning Unsatisfactory results and uncertain timetable of present authorization procedures (EIA)

28. Main issues related to wind farm development Mainly distributed in major Islands  Sardinia is linked with Italy with a dc 200 kV line  Limited transport capability (300 MW) and operational flexibility (few fast reversal/Year) and modulation range  Conventional power plant: few units, large size with high technical minimum  difficulty in managing load ramping in case of wind decrease  Big amount “Cip 6/92” Power Plant, with priority dispatching Wind power plant located in region of low power demand Wind energy to be transmitted over long distances to the load centres Necessity of grid extension

29. Wind capacity at regional level at the end of 2006 in MW. Wind capacity added in 2006 is indicated in bracket 346 (12) 451 (137) 153 (68) 421 (11)468 (126) 70 (21) 155 (8) 9 Wind capacity added in 2006 = 417 MW 3.5 28 (26) 2.5 (1.3) 6.5 (1.7) 1.5 Total wind capacity 2.123 MW 6 (6)

30. 36 326 1.516 1.126 North Centre South Islands FRANCE SWITZERLAND AUSTRIA 168 158 400 593 533 303 197 616 36 TOTAL (MW) 3.004 Wind generation capacity in 2008

31. 640 2.547 13.342 8.652 North Centre South Islands TOTAL (MW) 25.181 SLOVENIA FRANCE SWITZERLAND AUSTRIA 288 377 849 3.028 1862 2.828 2.044 5.442 147 201 109 1011 44 70 91 6.790 Total Wind connection applications to transmission grid: 25.181 MW (update December 2006)