Summary: Italy and Hungary received European Commission (EC) approval for their renewable energy aid schemes. Under the Recovery and Resilience Facility (RRF), Italy's €5.7 billion plan focuses on supporting renewable energy communities and self-consumers, while Hungary's €4.6 billion REPowerEU chapter aims to enhance renewable energy infrastructure and reduce fossil fuel dependency.

Italy's renewable energy scheme:

  • Budget: €5.7 billion aimed at self-consumers and renewable energy communities.
  • Composition: two aid measures supporting small-scale renewable energy projects (capacity up to 1MW).
  • Measures:
    • Premium tariff on electricity consumed by self-consumers and communities (€3.5 billion budget over 20 years).
    • Investment grant (€2.2 billion budget) for up to 40% of project costs financed through the RRF, limited to municipalities of fewer than 5,000 inhabitants and completion before June 30, 2026.
  • Objective: Support local communities in expanding renewable power generation.
  • Timeline: RRF-funded part until 2025, remaining until 2027.

Commissioner's statements: commissioner Didier Reynders emphasized the scheme's role in supporting citizen engagement in the green energy transition. The aid measure aligns with the European Green Deal and contributes to decarbonisation and meeting electricity production targets.

Impact on Italian market:

  • Aimed at the residential market, Italy's scheme is expected to boost market growth after the conclusion of the 110% Superbonus.
  • Italia Solare anticipates a surge in solar PV installations in 2023, potentially reaching 4GW, reminiscent of 2012 figures.

Hungary’s REPowerEU Chapter:

  • Budget: €4.6 billion focused on 13 reforms and 16 investments to reduce fossil fuel dependence before 2030 and promote renewable energy.
  • Reforms include dynamic pricing in the retail electricity market, strengthening energy communities' roles, and encouraging electricity storage uptake.
  • Hungary aims to increase renewable energy resource installations to 12GW by 2026.
  • Previously, the EC approved Hungary's €2.4 billion budget for renewable manufacturing investments.

Source of information: https://www.pv-tech.org/european-commission-approves-italys-and-hungarys-renewable-energy-schemes/ (Published 24 November 2023)