Premium tariff (Ritiro dedicato)

Updated: 07.02.2019

Author: Jasmin Schwarz

"Ritiro Dedicato" is a simplified purchase/resale arrangement rather than a "classical" feed-in tariff. It cannot be combined with “Scambio sul Posto”.

Renewable Energy producers can decide between selling the produced energy on the free market themselves or sell it to the GSE, who then sells the energy on the free market on their behalf (“Ritiro Dedicato”). Thus, GSE can be considered a mediator between producers and the market. Producers can decide whether they want to receive a guaranteed minimum price or the market price. In case the market price is higher than the guaranteed minimum price, the producer receives an annual adjustment. (Art.15.4 , Annex A, AEEG 280/07) Producers up to the following capacities may choose the guaranteed minimum price (prezzo minimo garantito) determined by the energy authority (Art. 7, Annex A, AEEG 280/07 in connection with Art. 4 AEEG 34/05).

 

  • 100 kW for PV, if they make use of other support schemes 
  • 500 kW for hydro, if they make use of other support schemes 
  • 1 MW for all sources, if they do or do not make use of other support schemes

To producers up to the following capacities apply market prices: 

 

  • 1 MW for all sources (excl. cases mentioned above), that already make use of other support schemes, 
  • More than 1 MW for all sources, if they do not make use of support schemes.

Guaranteed minimum prices are calculated and updated according to the formulas set in Art. 7.6 , Annex A, AEEG 280/07. The guaranteed minimum prices for the year 2018 were published on the Website of ARERA.

Eligible technologies

All technologies are eligible (Art. 13, c. 3,4 DL 387/03 and Art. 1 par. 41 L 239/04).

Wind energy

Eligible (Art. 13, c. 3,4 DL 387/03 and Art. 1 par. 41 L 239/04).

Solar energy

Eligible (Art. 13, c. 3,4 DL 387/03 and Art. 1 par. 41 L 239/04).

Geothermal energy

Eligible (Art. 13, c. 3,4 DL 387/03 and Art. 1 par. 41 L 239/04).

Biogas

Eligible below a capacity of 10 MVA (Art. 13, c. 3,4 DL 387/03 and Art. 1 par. 41 L 239/04).

Hydro-power

Wave and tidal power stations and run-of-river plants are eligible (Art. 13, c. 3,4 DL 387/03 and Art. 1 par. 41 L 239/04).

Biomass

Eligible (Art. 13, c. 3,4 DL 387/03 and Art. 1 par. 41 L 239/04).

Amount

The amount of payment decreases with increasing output and are adjusted for inflation (Art. 7.5, Annex A, AEEG 280/07). The updated formulas for calculating the exact guaranteed minimum price are available in Art. 7. 6, Annex A, AEEG 280/07.

Wind energy

The formulas for calculating the exact guaranteed minimum price are available in Art. 7, par. 6, of the adapted Annex A, AEEG 280/07.

Solar energy

The formulas for calculating the guaranteed minimum price are available in Art. 7, par. 6, of the adapted Annex A, AEEG 280/07.

Geothermal energy

The formulas for calculating the exact guaranteed minimum price are available in Art. 7, par. 6, of the adapted Annex A, AEEG 280/07. 

Biogas

The formulas for calculating the exact guaranteed minimum price are available in Art. 7, par. 6, of the adapted Annex A, AEEG 280/07. 

Hydro-power

The formulas for calculating the exact guaranteed minimum price are available in Art. 7, par. 6, of the adapted Annex A, AEEG 280/07. 

Biomass

The formulas for calculating the exact guaranteed minimum price are available in Art. 7, par. 6, of the adapted Annex A, AEEG 280/07. 

Addressees

Entitled party. All eligible operators of plants that generate electricity from renewable energy sources (Art. 13, c. 3,4 DL 387/03 and Art. 1 par. 41 L 239/04).
Obligated party. The obligated parties are, alternatively, the grid operators or GSE (Gestore Servizi Energetici) (Art. 3, c. 2 and 11 AEEG 34/05).

Procedure

Process flow

A given producer shall submit an application within 60 days from commissioning and conclude a contract, which may be renewed annually with GSE. Payment starts on a date agreed by the parties, provided that the plant is deemed admissible by GSE in the verification process (Arts. 3 and 14, Annex A, AEEG 280/07).

Competent authority

GSE checks the information and data submitted by the producers (Art. 14 par. 3, Annex A, AEEG 280/07).

Degression

Only the statutory minimum price is subject to adjustments. This priceis re-assessed every year and is based on the ISTAT's (office for statistics) calculation on the consumption prices of families of workers and employees (Art. 7 par. 5 AEEG 280/07).

Eligibility period

The guaranteed minimum tariffs are applicable for one year (Art. 7 par. 2 AEEG 280/07).

Distribution of costs

Consumers

Part of the costs is paid by the consumers via the electricity price (Art. 47.1b, 49.2h Annex A ARG/elt 199/11).

Plant operator

According to DM 24/12/2014 since 1 January 2015, RE plant operators that present, for at least one day during the year, a valid Ritiro Dedicato Convention - except for facilities with a capacity up to 3 kW - must pay to the Manager of Electricity Services GSE a fee to cover the costs of management, verification and control. Tariffs Fees are applied annually and vary depending on the RES. The fee for each RES is calculated based on the nominal capacity of the RE plant and is limited to max. € 10,000 per year.

Fees for solar energy are calculated as follows:

  • 0.7 €/kW for units with a capacity between 1 and 20 kW;
  • 0.65 €/kW for units with a capacity between 20 and 200 kW;
  • 0.6 €/kW for units with a capacity higher than 200 kW.

Fees for wind energy are calculated as follows:

  • 0.9 €/kW for units with a capacity between 1 and 20 kW;
  • 0.8 €/kW for units with a capacity between 20 and 200 kW;
  • 0.7 €/kW for units with a capacity higher than 200 kW.

Fees for hydropower are calculated as follows:

  • 1.1 €kW for units with a capacity between 1 and 20 kW;
  • 0.9 €/kW for units with a capacity between 20 and 200 kW;
  • 0.8 €/kW for units with a capacity higher than 200 kW.

Fees for other sources are calculated as follows:

  • 1.2 €kW for units with a capacity between 1 and 20 kW;
  • 1.0 €/kW for units with a capacity between 20 and 200 kW;
  • 0.9 €/kW for units with a capacity higher than 200 kW.

Distribution mechanism

The grid operator shall pay the difference between the guaranteed minimum price and the price he achieves on the market to the plant operators. He receives this difference from the fund for the promotion of plants generating electricity from renewable energy sources (Conto per nuovi impianti da fonti rinnovabili ed assimilate), which is in turn financed from a charge listed on the electricity bills of the consumers (Componente A3) (Art. 38.2b, 47.1b 49.2h Annex A, ARG/elt 199/11).

Italy

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