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  • Ministerial Decree 414 of 7 December 2023 concerning identification of an incentive tariff for renewable energy plants, in implementation of Legislative Decree 199/2021

Ministerial Decree 414 of 7 December 2023 concerning identification of an incentive tariff for renewable energy plants, in implementation of Legislative Decree 199/2021

Geography
Year
2023
Document Type
Policy

Summary

Ministerial Decree No. 414/2023 is a regulatory framework designed to execute Legislative Decree No. 199/2021 and fulfill a specific green energy investment (Mission 2, Component 2) within Italy’s National Recovery and Resilience Plan (PNRR). Its primary goal is to incentivize the growth of renewable energy through collaborative models, specifically targeting Renewable Energy Communities (CERs) and various collective or individual self-consumption arrangements.


The Decree establishes two cumulative financial benefits for eligible projects:



  • PNRR Capital Grants: A direct, non-repayable contribution covering up to 40% of the initial investment costs. This specific fund is a geographic incentive, reserved for renewable plants built in smaller municipalities (those with 5,000 residents or fewer).

  • Incentive Feed-in Tariffs: A performance-based "premium" paid for the renewable electricity actually produced and shared within the community. Unlike the capital grant, this tariff is available nationwide and is guaranteed for a 20-year period starting from the date the plant begins commercial operations.


Eligibility for the incentives is subject to compliance with the conditions set forth in Article 3 of the Decree. These include: a maximum plant capacity, the prior establishment of the energy community before the plant’s entry into operation, and the requirement that participating enterprises be classified as small or medium-sized enterprises (SMEs).

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Group
Topics
Target
Policy instrument
Risk
Impacted group
Just transition
Renewable energy
Fossil fuel
Greenhouse gas
Economic sector
Adaptation/resilience
Finance

Note

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The summary of this document was written by researchers at the Grantham Research Institute . If you want to use this summary, please check terms of use for citation and licensing of third party data.