Italy awarded 8.6GW of capacity in its first Fer-X tender, according to results published by state agency Gestore dei Servizi Energetici (GSE). This transitional mechanism plans to subsidise around 12GW of new renewable installations by the end of 2025, covering both greenfield developments and repowering of existing sites.
Out of the 8GW available for solar photovoltaic capacity, 7.7GW were allocated across 474 projects, with only one being a repowering initiative. The weighted average price reached €56.825/MWh ($61.32/MWh), while the highest awarded price stood at €62.675/MWh ($67.65/MWh). The scheme is based on a contract-for-difference model, ensuring price stability for winning developers.
Industrial concentration and scale economies
The market was dominated by large-scale projects ranging from 50 to 100MW, benefitting from lower capital expenditure. This situation excluded smaller projects, which could not compete on economic terms. Industry sources indicated that such low price levels are only feasible in high-irradiance regions and under a secured contractual framework.
Despite the overall volume success, 72 solar projects totalling 744MW were withdrawn prior to award, with developers showing interest in the second Fer-X round. This new auction, restricted to projects using non-Chinese components, received 156 applications for a total of 1.85GW, although the Ministry of Energy capped awards at 1.6GW. Results are expected by December 15.
Grid congestion risk in the south
A large share of the awarded capacity is located in southern Italy and Sicily, where electricity demand remains below forecasted supply. This raises a higher risk of curtailment. Industry players have proposed installing storage systems at industrial sites to shift consumption to evening hours and alleviate pressure on the grid.
The regional imbalance also compels grid operator Terna to accelerate infrastructure reinforcements between the south and the north. These investments are seen as essential to absorb the production increase and safeguard network stability.
Mixed results for onshore wind
In the onshore wind segment, GSE awarded 940MW to 29 projects out of a possible 2.5GW. Around one-third of this capacity relates to refurbishment works. The weighted average awarded price reached €72.851/MWh ($78.61/MWh), with a maximum of €77.738/MWh ($83.90/MWh), reflecting a higher pricing dynamic compared to solar.
Awarded projects must be commissioned within 36 months from the date of result notification. As of October, Italy had 41.89GW of installed solar photovoltaic capacity and 13.46GW of wind, representing a year-on-year increase of 6.1GW and 574MW, respectively.
