At Wind Europe #Wind #Energy Market outlook 2019-2023 I presented the 5 years outlook for Italy. Here some slides #PPA #NECP #repowering #decommissioning #permitting

1. 1
2023 Wind Market Outlook
A 5 years outlook for Italy
Davide Astiaso Garcia
Secretary General
ANEV - Italian Wind Energy Association
segretario.generale@anev.org
WindEurope Workshop
29th May 2019

2. 2
Annual installations

3. 2
Cumulative installations
Italian NECP for wind:
2025: 15.690 MW
2030: 18.400 MW

4. + 8.5 GW at 2030 compared to the 2018 installed power
Italian NECP data for electric sector

5. 2
Italian NECP data for electric sector
PV WindHydro Biomasses Geothermal

6. 2
Decomissioned capacity and repowering installations
Decomissioned capacity for the next 5 years:
500 MW per year ± 15%
Repowering installations for the next 5 years - Central scenario ± 15%
2019 2020 2021 2022 2023
Onshore (MW) 50 450 250 200 200
Repowering has a strategic importance for Italy because, in addition with the construction of new plants
development, could remarkably contribute to achieve the Italian wind targets
An strong policy for the repowering of the Italian wind farms requires not only new support tools, but also a
simplification and rationalization of the authorization process.

7. The italian wind farms – The risk of decomissioning
The Italian wind farm is gradually getting older
• Average age at 2018: 8 years
• Average age at 2030: 21 years
Assuming the absence of repowering interventions, a wind farm will be disposed between the 20 and
25 years of age (depending on the characteristics of the project), because there are not conditions for
operating in a market - grid parity.
It is estimated that the decomissioning of Italian wind power (50% of the plants will be disposed of
after 20 years and the remaining 50% after reaching the 25th year) could be equal to 3.373 MW at
2030. It will be equal to 1.625 MW at 2020.
Without new installations and considering the end of life of Italian Wind farms, the installed power
would be equal to 7 GW, corresponding to the installed power at 2011.
A big step backwards for the Italian wind energy industry and for its contribution to achieve the
EU and Italian targets as recently represented by the Italian Government in the National
Integrated Energy and Climate Plan (PINEC).
The Italian wind farm age
Decomissioning

8. 2
Italian repowering criticalities
The Decreto Spalamaincentivi Volontario is an Italian Legislative Decree that entered into force in 2014 with an
objective to limit the burden of renewable support on electricity tariffs, providing for renewable electricity
producers the possibility to extend the useful life of the plants in exchange for a reduction in the level of the support.
In particular the Decree provided for:
I) Continue to receive the original support for the entire duration of the support scheme. At the end of the
support period, for an additional 10 years, any type of intervention on these plants would have not given the
right to additional support (e.g. no support of any kind could have been claimed for repowering of a wind farm).
Or
II) Opt for a re-modulation of the level of support in exchange for an additional 7-year extension of the support
scheme. This option allowed access to additional support in case of repowering.
The choice could have been made for all renewable power plants (excluding photovoltaic plants) that benefited
from Green Certificates or the “tariffa omnicomprensiva” and for which the support period ended after
31/12/2014.
Considering that Italy has already reached its 2020 RES target in 2014 and that at that time (i.e. 2014) no
future support scheme was foreseen, the vast majority of renewable energy producers opted for option I (e.g.
not to modify the support scheme).

9. 2
Italian repowering criticalities
- The volumes. Almost 100% of the wind farm operators opted for option I with the implication that almost all of
the wind farms that could be subject to repowering in Italy are prevented from accessing any type of support
for 10 years. With almost 10 GW of onshore wind capacity installed today in Italy of which almost 5 GW
reaching end of life between now and 2030, Italy would seriously risk falling short of half of wind power
generation capacity by 2030. With no long-term revenue stabilization mechanism for repowering, the wind
energy sector in Italy would suffer serious step-backs and Italy (and hence the EU) might risk not reaching its
renewable target for 2030.
- Advantages of repowering. Facilitating repowering means, among other things, using the wind energy resource
often located at best sites efficiently, using the best available technologies with the least use of space – i.e.
producing more clean electricity at the least cost for society. We very much welcome the articles in favor of
repowering in the Governance Regulation and the Revised Renewable Energy Directive (RED II) and we
strongly believe Italy should follow the same direction.
- We fully understand that the decision to support or not repowering is in the hands of Member States but we
truly believe that the DSV stands in contradiction with the overall objectives of the Clean Energy Package to
promote renewables in the most-efficient way for societies.

10. 2
Upcaming auctions (>1MW) – Upcaming Decree draft
Group A: Wind + PV

11. 2
Upcaming registers (<1MW) - Upcaming Decree draft
Group A: Wind + PV

12. 2
Other criticalities
- The so-called ‘burden-sharing’ between State and Regions whereby the Regions have the power to propose
potential areas to locate wind farms might have the effect of stopping at all the deployment of wind energy. One
main reason is that the Regions do not have the instruments for measuring the wind resource at the level
required by developers (e.g. met-mast). Another key consideration is that Regions have the power to veto the
resourceful areas designated by the Government. This has led to a series of cases pending in front of competent
administrative tribunals, where permitting procedures for wind farms have been suspended or stopped by
Regions that were not in favor of developing wind parks. We fear that inverting the procedure to let Regions
become the main proposers of designated areas would translate into a drastic stop to wind farm concessions.
- The permitting process in Italy is extremely lengthy as many different entities/bodies are involved and often the
timing is not respected, particularly as far as the Environmental Impact Assessment (EIA) is concerned. We
wonder whether the requirement of administrative simplification and a swift process for repowering, foreseen
by the Revised Renewable Energy Directive, would be met in practice.

13. 2
ANEV Coorporate PPA working group
Participants: ANEV members and external
experts including energy traders, operators,
investors and legal offices.
Goals: To highlight the main criticalities,
economic and non economic barriers for
the development of corporate PPA in Italy
and consequently to identify measures and
strategies to overcome these barriers.
Actions: To develop and present to the
Italian institutions a document that includes
measures and strategies shared and
approved by all the main actors and
stakeholders

14. 2
Conclusions
Italians wind targets from medium to long term can only be achieved
through a targeted program of existing plants repowering (4.0 GW at
2030).
Maintaining the "as-is" would lead to the gradual dismantling of the lines
come to the end of life (3.4 GW at 2030).
Several critical factors preventing investments in existing sites
(spalmaincentivi, complex permitting procedures, absence of economic
tools, environmental and infrastructure constraints).
Repowering will lead to many benefits for the country, with very positive
impacts to the economy, the environment and the territory.
It is therefore necessary to modify the current policy and framework for
concretely promote the repowering of the Italian wind farm.
The main measures proposed: overcoming the absence of supporting economic
strategies, and incentive tools, simplifying authorization processes, maxi
depreciation for investments, bonus on production increases.
The repowering program, in addition with the construction of new plants development,
is essential to achieve the 2030 goals set by the EU and the Italian PNIEC

15. 1
2023 Wind Market Outlook
Many thanks for your attention!!
Davide Astiaso Garcia
Secretary General
ANEV - Italian Wind Energy Association
segretario.generale@anev.org
WindEurope Workshop
29th May 2019