Country:Italy
Year:1999
Policy status:Ended
Jurisdiction:National
Date Effective:1999
Policy Type:Economic Instruments>Market-based instruments>Green certificates, Regulatory Instruments>Obligation schemes 
Renewable Energy Policy Targets:Multiple RE Sources, Power
Policy Sector:Electricity
Climate Change Policy Targets:Energy Sector, Electricity Generation, Renewable, Framework/ Multi-sectoral Policy
Agency:Gestore dei Servizi Energetici
URL:http://www.parlamento.it/parlam/leggi/deleghe/99079dl.htm
Legal References:Legislative decree 79/99 of 16 March 1999 entitled
Renewable Energy Description:

The 1999 Electricity Liberalization Act and Decrees from Italys Ministries of Trade and Industry and of Environment (MICA Decree 11/11/99) introduced a cap and trade mechanism to promote renewable energy sources. It required Italian energy producers and importers (producing or importing more than 100 GWh/year from conventional sources) to fed into the grid a certain quota of RES electricity. A 2% quota obligation was set, strengthened in 2003 and again in 2008. Producers and importers can comply with the obligation by means of green certificates they can buy through bilateral contracts or participating to the green certificates platform (managed by GME, the energy markets operator). Green certificates may be granted to the electricity produced by entitled renewable energy plants, located in Italy or in Countries with similar support mechanisms on the basis of reciprocity. Renewable plants that came into operation before 31 December 2007 can obtain green certificates for 12 years. The initial size of each Green Certificates was 100 MWh. Subsequent regulatory interventions have increased the incentive period up to 15 years and reduced the certificate size first to 50 MWh before and then to 1 MWh. Also the quota obligation was revised over the years providing an annual increasing growth of +0,35%/year from 2004 to 2007 and +0,75%/year after 2007.

Climate Change Description:

The 1999 Electricity Liberalisation Act and Decrees from Italys Ministries of Trade and Industry and of Environment (MICA Decree 11/11/99) introduced a cap and trade mechanism to promote renewable energy sources. It required Italian energy producers and importers (producing or importing more than 100 GWh/year from conventional sources) to ensure that a certain quota of electricity fed into the grid comes from renewable energy sources. A 2% quota obligation was set, strengthened in 2003 and again in 2008. Producers and importers can comply with the obligation is by means of green certificates. They can buy those certificates through bilateral contracts or participating to the green certificates platform (managed by GME, the energy markets operator). Suppliers can fulfill the obligation by buying green certificates from entitled new renewable energy plants, by building new renewable energy plants, or by importing electricity from new renewable energy plants from countries with similar instruments on the basis of reciprocity. Renewable source plants that came into operation before 31 December 2007 can obtain green certificates for 12 years. Subsequent regulatory interventions have increased the incentive period to 15 years.

Related policies:Feed-in premium for renewable energy sources other than photovoltaic

Last modified: Mon, 12 May 2014 16:19:20 CEST