Renewable, new incentives are coming: from auctions to contributions, how they work and how to access them

How much power is expected for the first rod

For the first auction, the decree of 2 October 2026 indicates three values: a minimum, a target and a maximum. They are the references for establishing how much power to select, taking into account the prices offered and participation. For ordinary photovoltaics the objective is 350 MW (with a minimum range of 210 MW and a maximum of 3.5 GW); for photovoltaic Nzia target at 150 MW (minimum at 90 MW and maximum at 1.5 GW); for ordinary wind power target at 1.5 GW (minimum 100 MW, maximum 2 GW); for wind Nzia target at 75o MW (minimum at 50 MW and maximum at 1 GW); for hydroelectric the target is 30 MW (minimum 60 MW and maximum 500 MW). The target is not an automatically assigned quantity and the maximum is the expected upper limit. To define the actual tender volumes, the GSE also considers the power of the expressions of interest, reduced by 10%, within the limits of the decree. This maintains competition between projects. The outcome will also depend on the prices offered by the operators.

What are the starting prices

For photovoltaic the operating price is 80 euros per megawatt hour, the price above 95 €/MWh. For wind power 85 €/MWh and 95 €/MWh, while for hydroelectric 90 €/MWh and 105 €/MWh. For residual gases from purification 85 €/MWh and 100 €/MWh The "higher price" is the tender basis on which the operator proposes the discount; the "strike price" is a reference for building the auction mechanism. Neither is a rate automatically recognized by everyone. The applicable prices, updated according to inflation rules, are indicated in the notices; the awarded price depends on the outcome of the auction.

How the contribution is paid

The contribution is recognized for 20 years through a two-way contract for difference. The producer sells the energy on the market. If the reference market price is lower than the awarded price, the GSE pays the difference; if it is higher, the producer returns the difference to the GSE. For example, with an awarded price of €70/MWh and a reference price of €50/MWh, the GSE pays €20/MWh. If the reference price rises to €90/MWh, the producer returns €20/MWh. The reference is the Day Ahead Market price in the market area and period considered, assumed to be zero if negative. The calculation concerns the net energy injected into the grid, except in the specific cases provided for by the rules.

How to access with systems up to 1 MW

For interventions up to and including 1 MW, calculated according to the rules of the decree, direct access is provided after entry into operation: it is not necessary to participate in the auction. However, the requirements and the overall limit of 10 GW available must be respected. For interventions of less than 200 kW, an all-inclusive tariff can be requested: the GSE withdraws the energy and pays a tariff that includes both its value and support.

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