Current Status and Prospects of Photovoltaic Power Generation in Italy
S. Castello
ENEA Casaccia Roma
December 2009
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009
Installed power (MW)
PV market in Italy
900
800
700
600
500
400
300
200
100
0
+33%
+380%
cumulative
2005
•
•
annual
+460%
2006
2007
2008
2009 exp.
Strong Growth in Italy’s PV Market in 2007 and 2008
Expected growth of 33% in 2009 despite the financial crisis
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009
Incentive scheme in Italy
• Incentives were first endorsed in 2005, then updated in 2007
• The support scheme consists of:
– a tariff (premium) for the electricity produced by PV plant (35‐48 c€/kWh) fixed for 20 years
– the value of electricity produced (selfconsumed or sold to the grid).
– a further increase up to 30% in case of improving the energy efficiency of the annexed building
• The goal of cumulative power installed is 3 GW within 2016
• Maximum power supported: 1,2 GW + the power installed in the next 14 months
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009
Supported power
2400
Maximum
power
supported
1700-2000 MW
Cumulative power (MW)
2100
1800
1500
1200
1200 MW
14 months
900
600
?
300
Jan 12
Sep 11
May 11
Jan 11
Sep 10
May 10
Jan 10
Sep 09
May 09
Jan 09
Sep 08
May 08
Jan 08
Sep 07
May 07
Jan 07
Sep 06
0
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009
Granted incentives
• The cost of the incentive is covered by a component of the electricity tariff structure to be paid by all consumers Granted incentives up to Aug. 09 kind of plant number of plant
MW
GWh
incentives (M€)
net metering
26851
137
177
79
energy sold
2865
234
290
132
total
29716
371
467
211
• Incentives to be granted from the end of this phase (1.8 GW):
1,000 M€/year
– Cost increase per consumer: + 7 €/year (+ 1.3%)
– Total investment: 8,000 M€
– Labour places: 35,000 units
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009
Monitoring results
• High interest of
– Citizen: 80 % of feed in tariff beneficiary
– Private company: 65% of the total power
• Substantial regional differences
– less sunny northern part of the country had the most solar PV installations (50%).
– In the south and islands only 30%
• Positive exploitation of surfaces not differently utilised – 75% of plants have been realized on roofs (industrial structures, private houses, schools, farmhouses)
– Ground mounted: only 25%
• High share of imported components (85% of modules)
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009
PV Industry in Italy
Main national producer
• Modules: 12
• Cells: 4
• Polysilicon : 3 initiatives announced (10,000 tons/year)
• Inverter: 5 350
250
200
150
100
50
0
cells
inverter
1000
modules
Power (MW)
Power (MW)
300
1200
800
600
400
200
0
2006
2007
2008
2009 exp.
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009
Installed power and module production
500
Power (MW)
400
cell produced
300
200
module produced
100
installed plants
0
2006 2007 2008 2009 exp.
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009
Business value in Italy
2500
2000
installed plants
Value (M€)
1500
1000
export of PV products
500
import of PV products
0
-500
2006 2007 2008 2009
exp.
net value of PV business
-1000
-1500
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009
Barriers in the Italian PV market
• Italian market is not booming although attractive incentives, low module prices, brief return on investment
– Difficulties to find a way to finance the project (economic conjuncture not favorable) – Long times between the construction and the actual payment of incentives
– Authorization process not uniform on the territory
– Complicate procedures for connection to the grid
– Grid not adequate
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009
Barriers in the Italian PV market
Status of MV and HV grid in South Italy
• Requests of connection of
large PV Plants: 11.7 GW
• Peak load: 12 GW
• Wind power installed : 4.2 GW +
3.5 GW (already authorized)
150
40
10
81
315
1153
180
315
953
4826
512
195
TERNA Plan for grid development
•Increase of transmission SouthNord
•International Interconnection
•Interconnection with islands
3298
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009
Barriers in the Italian PV market
• Low presence of energetic and environmental aspects in urban planning and in building design
• Lack of skilled workers for the design of PV plants
• Ineffective information campaigns
• Plant decommissioning (CdTe)
• Uncertainty in the medium term on – tariffs – degression rate
– supported power
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009
Market perspectives
• The Italian Government estimated in 2007
– an intermediate target of 3 GW by 2016
– a potentiality of 8.5 GW by 2020 • At present, the market is growing so fast that – the target of 3 GW could be reached by 2012 – the 8.5 GW goal could be reached long before 2020 even with a low average growth (10%)
• A new decree (under preparation) will redefine
– maximum power supported
– tariffs of the PV plants commissioned after 2010
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009
Incentive scheme proposal
(by GIFI)
• Maximum power supported: 7 GW (2011‐2015)
• ongoing tariff reduction of 20% – ground mounted:27 c€/kWh
– on buildings: 30‐40 c€/kWh +25% for BIPV
• Annual degression rate: 5‐20%/year
• Same incentive scheme (no changing law) including
– a fixed tariff (premium) for the electricity produced by PV plant
– the value of electricity produced (self consumed or sold to the grid)
• PV concentration admitted
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009
Conclusion
• With very attractive incentive scheme, Italy is today the world’s second largest PV market
• Nevertheless, the Italian market is not booming (barriers) • In order to ensure a sustainable development of the market the future incentive scheme should:
– be based on simplified procedures – guarantee an acceptable PBT
– avoid huge windows of opportunity
– drive price down – create job opportunities
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009
Thank you for your attention
Sistemi fotovoltaici in conto energia, workshop PVENAS - Torino, 16 Dicembre 2009