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Operational rules of Italy’s Transitional FER X Decree30 May 2025

On 20 May 2025, by means of a directorial decree of the Ministry of the Environment and Energy Security (“MASE”), the operating rules (the “Operational Rules”) outlined by the Gestore dei Servizi Energetici (“GSE”) for accessing the incentives provided for by MASE through Ministerial Decree No. 457 of 30 December 2024 (“Transitional FER X”) were approved.

Categories of eligible works  

Access to the support mechanism, for plants with a cumulative nominal capacity or an increased nominal capacity (in the case of upgrades exceeding 1 MW) is granted through participation in competitive public procedures announced by the GSE, with specific power quotas allocated in accordance with the type of plant.

"Access to the support mechanism is granted through participation in competitive public procedures announced by the GSE."

The following four categories of eligible works are envisaged, and must be carried out using either new or remanufactured components:

New construction

A plant is considered ‘newly built’ if:

(a) it does not have functional interconnections with other plants;

(b) the site on which the plant is built has not been affected by the presence of another energy production plant powered by the same source in the preceding five years;

(c) for photovoltaic systems specifically:

    • the modules must be installed in areas that have not housed other modules in the five years prior to the construction works;
    • they must have no shared connection point (“POD”); and
    • they must have no functional interconnections with other plants.
Complete renovation

Complete renovation is permitted for all types of plants (except for hydroelectric on aqueducts) and entails:

(a) the complete replacement of a plant’s wind turbines (for wind farms) or modules and inverters (for photovoltaic systems); and

(b) the reconstruction of hydraulic works and replacement of turbine-alternator units for hydroelectric plants (excluding those located on aqueducts).

Regardless of the type of plant undergoing renovations, the incentive will apply only to the energy produced by the sections that have undergone any work.

Upgrading

Upgrades are allowed for wind and photovoltaic plants, as well as for plants relating to residual gases from purification processes. Upgrades consist of the addition of new sections with separate measurement, implemented on facilities that are already operational.

Partial renovation

Partial renovation is only permitted for hydroelectric plants or plants relating to residual gases from purification processes. Partial renovation works consist of the complete replacement of relevant turbine-alternators in order to ensure the continued full operational efficiency of the plant.

Procedures and timelines

Competitive public procedures are carried out online in compliance with the principles of transparency, openness, protection of competitiveness and to ensure a level playing field.

Each procedure includes:

  • a call for: (i) submitting a declaration of interest and (ii) submitting the application;
  • a minimum, target and maximum power quota, expressed in MW; and
  • a ranking list prepared by the GSE following an evaluation of the projects. The list will consider any possible percentage reduction offered respective of any higher exercise price relating to relevant competitive procedures and potential application of priority criteria.

The quota to be allocated in each competitive procedure will be determined based on a specific demand curve developed by the GSE, in accordance with the guidelines set out in Annex 2 of the Transitional FER X. With regards to the reference power quotas, these have been established in accordance with the provisions of MASE’s Directorial Decree No. 12 of 1 April 2025 on “Time progression of the target quota and methodology for calculating the target, minimum and maximum power quota pursuant to the decree of the Minister of the Environment and Energy Security of 30 December 2024“:

Table 1: Reference quotas

Type of plantMinimum Quota (MW)Target Quota (MW)Maximum Quota (MW)
Photovoltaic6001,0008,000
Wind2003002,500
Hydroelectric3060500
Plants relating to residual gases from purification processes1.1220

At the close of the submission window for the declaration of interest, each of the quotas will be redetermined, depending on the relevant technology, for a value equal to the minimum between: (i) the sum of the powers of all the declarations of interest, reduced by 10%; and (ii) the value defined in Table 1.

Each competitive procedure will remain open for a period of 60 days from the date identified by the public call on the GSE website, with the relevant rankings published within 90 days following the closing date.

GSE will publish the relevant call for tenders setting forth the terms, criteria and procedures for submitting an application to participate, as well as the capacity quota to be allocated.

How to participate

Declarations of interest, applications to participate in competitive procedures – and all required supporting documentation that must be attached to the request – must be submitted, under penalty of ineligibility, solely through the FER-X portal (the “Portal”), accessible on GSE’s website.

Each application must be uploaded, under penalty of exclusion, within the relevant timeframe which is the responsibility of the applicant to comply with.

Applicants must first register as a user on the GSE website to determine the applicable tax regime (VAT number/tax code). The Portal is interoperable with the GAUDÌ system, managed by Terna S.p.A. (“Terna”). Therefore, before submitting an application, a plant must be registered and validated accordingly, with power values expressed in kW.

It is understood that the submission of application for participations in competitive procedures through the Portal is limited to those plants for which a declaration of interest has already been submitted. Details on how to use the Portal are available on the GSE’s website (“Guida all’utilizzo del Portale FER-X”).

Preliminary declaration of interest

As noted, access to competitive procedures is only available to those submitted a specific declaration of interest for the plant subject to the proposed works.

In this regard, applicants must:

(i) provide relevant information, including, inter alia:

    • the plant’s CENSIMP code and Request Code assigned by Terna;
    • the plant’s energy source;
    • the category of intervention;
    • data relating to the plant’s power capacity (including: (i) the cumulative nominal power capacity; (ii) the required power quota and, where applicable; (iii) the power capacity required to comply with the duties referred to in Art. 26 of Legislative Decree 199/2021); and
    • data on the geographical location of the plant.

It is advisable to submit all additional data relating to the authorisation title or the favourable Environmental Impact Assessment (“EIA”) (where applicable) or a decree evidencing the exemption from the EIA.

(ii) indicate all relevant administrative and tax data in the “Preliminary costs” section.

The GSE will assess the eligibility of the declaration of interest and will inform the relevant technical advisor of any updates to its status.

Application for registration in the procedures

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"Access is not permitted for facilities where works commenced prior to the submission of the application."

Applications for registration in the competitive procedures may only be submitted for initiatives whose declaration of interest has been deemed suitable. Similarly to the declaration of interest, the application must be submitted through the Portal during the assigned timeframe.

Applicants must:

(a) upload of all data relating to the provisional security deposit*;

(b) provide data relating to the main characteristics of the plant subject to intervention;

(c) indicate whether the application of the priority criteria referred to in the Transitional FER X relating to the establishment of the rankings is applicable; and

(d) provide an indication of the value of the percentage reduction offered on the higher strike price.

*The provisional and final guarantees required for participation in competitive procedures may be provided in the form of a bank or insurance guarantee and must possess specific characteristics as described in the Operational Rules.

Both the application for registration in the competitive procedures and the declaration of interest must be submitted as declaration in lieu of an affidavit pursuant to Presidential Decree n. 445/2000 and must be signed by the applicant, who will be held legally accountable for the accuracy and truthfulness of the information provided.

Requirements for registration in competitive procedures

To qualify for participation in the competitive procedures, both subjective and objective requirements must be met and maintained throughout the entire incentive period.

1. Subjective requirements

Access to competitive procedures will be reserved only for entities that meet the following conditions:

(a) the applicant must not be a company in financial difficulty (according to the definition set out in the Communication from the Commission published in the Official Journal of the European Union C 249 dated 31 July 2014);

(b) there must be no grounds for exclusion under Art. 94 and 95 of Legislative Decree No. 36 of 31 March 2023 (“Public Contracts Code”);

(c) the applicant must not be on the list of companies for which a recovery order is pending as a result of a decision of the European Commission which has declared one or more incentives granted to the applicant unlawful and incompatible with the internal market; and

(d) the applicant must not be on the list of individuals subject to the causes of prohibition, forfeiture or suspension referred to in Art. 67 of Legislative Decree No. 159 of 6 September 2011.

2. Objective requirements

(a) possession of a permit to build and operate the plant, or (if the plant is newly built) or to implement upgrades or renovation work or, where required, possession of a favourable EIA measure or, alternatively, a decree evidencing the exemption from the EIA pursuant to Legislative Decree No. 152/2006;

(b) acceptance of an electricity grid connection offer and registration of the plant in the GAUDì system validated by the grid operator;

(c) pursuant to Art. 3, paragraph 4 of the Decree of the MASE of 19 June 2024 (relating to “Incentives for renewable source plants that are innovative or have high generation costs and a low impact on the environment and the territory”), the so-called ‘DM FER2’, access to incentives is not granted to plants that have commenced works prior to the publication of the ranking list (either the date of commencement of works, as declared in the notice of commencement of works submitted to the competent administration, where applicable, or the date of the first commitment to order the equipment or another commitment that renders the investment irreversible, whichever occurs first);

(d) the plant’s compliance with the “Do No Significant Harm” principle (“DNSH”), following a specific compliance assessment carried out by the applicant;

(e) obligation to participate in the balancing and re-dispatching market, applicable to the entire nominal power capacity of the plant involved in the intervention;

(f) possession of adequate financial soundness, evidenced by providing: (a) a specific declaration issued by a financial institution certifying the applicant’s financial and economic capacity or (b) capitalisation, the minimum value determined according to the scope of the proposed intervention;

(g) start of works after the date of participation in the competitive procedures (access is not permitted for facilities where works commenced prior to the submission of the application);

(h) for photovoltaic systems: (i) removal of any eternit or asbestos roofing; (ii) use of newly built or regenerated components (i.e. never previously used in other systems); and (iii) the modules’ compliance with the provisions of Art. 9 and 10 of Legislative Decree 49/2014;

(i) for plants relating to residual gases from purification processes, (i) digestate tanks must have a volume equal to a 30-day production and equipped with a gas-tight cover; and (ii) compliance with the sustainability requirements under Legislative Decree 199/2021 for plants with a nominal thermal power capacity equal to or greater than 2 MW; and

(j) for hydroelectric plants, compliance with the characteristics outlined in Annex 3, paragraph 1, letter a) of the Transitional FER X.

Specifically for hydroelectric plants, in addition to what provided under letter a) above, the applicant must also provide proof of ownership, on the date of participation in the competitive procedure, of the concession title for the derivation of water for hydroelectric use.

Definition of “Commencement of Works”

For participation in competitive procedures, the date of ‘commencement of works’ shall be either the date on which construction works related to the proposed project begin, as declared in the notification submitted to the competent authority for the issuance of the authorisation (where applicable), or the date of the first binding commitment to order equipment or any other commitment that renders the investment irreversible—whichever occurs first.

Percentage reduction offered on the reference rate

The Transitional FER X provides that, to participate in competitive procedures, applicants must submit – when applying for each individual competitive procedure – a higher percentage reduction on the exercise price.

The higher exercise price for each type of procedure is determined based of the values indicated in Annex 1 of the Transitional FER X, updated on the basis of the latest data available on the date of publication of the individual calls.

Table 2: Operating Prices as per Table 1 of Annex 1 of the Transitional FER X Scheme

Type of plantOperating Price (€/MWh)Higher Operating Price (€/MWh)Lower Operating Price (€/MWh)
Photovoltaic809565
Wind859570
Hydroelectric9010580
Plants relating to residual gases from purification processes8510075

Formation of the rankings

"The ranking lists are created by the GSE within the limits of the available quotas."

The ranking list is based on the data provided by applicants pursuant to Presidential Decree 445/2000 and is published within 90 days of the closing date of the competitive procedures. No downgrading is envisaged for ranking lists created following application for the competitive procedures.

The ranking lists are created by the GSE within the limits of the available quotas and, in the event of quota exhaustion, the following priority criteria will apply:

(a) for photovoltaic plants: (i) complete removal of the eternit or asbestos roof; and (ii) complete renovation and upgrading of existing plants built in agricultural areas in the same area of agricultural land;

(b) plants built in the areas identified as suitable in implementation of Art. 20 of Legislative Decree no. 199 of 8 November 2021;

(c) presence of an energy storage system serving the plant that guarantees at least one daily modulation of electricity;

(d) execution of long-term energy supply contracts with a duration of at least 10 years; and

(e) earlier completion date of the application for participate in the procedure.

Grounds for exclusion from competitive procedures rankings

Circumstances that may constitute ground for exclusion are listed, by way of example but not limited to, in paragraph 4.6 of the Operational Rules. Amongst these, are included:

  • failure to comply with the requirements or deadlines provided for in the reference regulations, the Transitional FER X, the Operational Rules or public calls for tenders;
  • non, late or underpayment of contributions to cover preliminary investigation expenses;
  • the existence of any of the causes of exclusion referred to in Art. 3.4 of the Transitional FER X; and
  • the existence of legal impediments from applying to competitive procedures and/or admission to support mechanisms, where known by the GSE.

Waiver of the useful position in the ranking list

Any waiver of the ranking position obtained may be communicated to the GSE exclusively by means of the specific functionality available on the Portal.

Forfeiture of the ranking list

The circumstances that can, if proved by the GSE, lead to forfeiture from the rankings are listed, by way of example, in paragraph 4.8 of the Operational Rules. Amongst these are included:

(i) entry into operation of the plant beyond the timeframe set out in the Transitional FER X;

(ii) lack of requirements, priority criteria, discrepancies or false declarations;

(iii) commencement of work prior to the submission of the application to participate in the competitive procedures; and

(iv) proof of grounds for exclusion under 3, paragraph 4 of the Transitional FER X.

Process for evaluating requests

Paragraph 4.9 of the Operational Rules summarises the process for assessing requests to participate in competitive procedures. It is divided into the following phases:

(a) verification of the completeness of the documentation submitted; and

(b) publication of the rankings.

If it is proved that, regarding a request for access incentives, the applicant has provided false data or documents or has made false or misleading declarations, without prejudice to the recovery of any data already unduly received, the GSE will apply the provisions of Presidential Decree 445/2000.

Fees to cover investigation costs

For each declaration of interest submitted, the applicant will have to pay a mandatory fee to the GSE, as a contribution for the costs of the investigations. These include:

(a) €100 for plants with a power of less than or equal to 50 kW;

(b) €180 for plants with a power of more than 50 kW but less than 200 kW;

(c) €600 for plants with a power of more than 200 kW but less than 1 MW;

(d) €1,420 for plants with a capacity of more than 1 MW but less than 5 MW; and

(e) €2,300 for plants with a capacity of more than 5 MW.

Failure to provide proof of payment is grounds for exclusion from the ranking lists.

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