en.Wedoany.com Reported - Italy's Ministry of Environment and Energy Security (MASE) has issued Decree No. 194/2026, finalizing the FerX support mechanism. Approved by the EU in June and effective from August 7, the mechanism covers solar, wind, and hydroelectric installations as well as waste treatment plants.

For photovoltaic installations, the decree sets a 10 GW capacity quota with a reference price of €80/MWh. Facilities participating in competitive tenders are subject to two flexibility thresholds: under higher-cost conditions, the price can rise to a maximum of €95/MWh; under lower-cost conditions, the price can fall to a minimum of €65/MWh.

The decree also includes two additional subsidies: photovoltaic systems replacing Eternit or asbestos roofs receive an additional subsidy of €27/MWh, while installations on water bodies receive an additional €10/MWh.

Safeguard clauses limit simplified access for small-scale facilities. The mechanism for plants of 1 MW and below will cease to apply on December 31, 2030, or 60 days after the 10 GW quota is reached, whichever comes first.

Plants of 1 MW and below that commence construction after the decree takes effect can receive support directly without participating in competitive tenders. The Regulatory Authority for Energy, Networks and Environment (ARERA) must determine the awarded price for this capacity segment within 90 days of the decree's entry into force.

Facilities exceeding 1 MW must participate in competitive procedures. Projects that began construction before submitting an application are not eligible for support under this mechanism.

For facilities exceeding 10 MW that require a single authorization (AU), the decree introduces an accelerated project assessment process. Within 30 days of the authorization being granted, Italy's Energy Services Manager (GSE) must issue an opinion to the developer confirming whether the project meets the mechanism's conditions.

The decree requires MASE to periodically update quotas and coefficients in tenders at least every two years, based on data provided by Italian transmission operator Terna and GSE.

Awarded photovoltaic plants must become operational within 36 months. Periods of interruption in the construction of the plant and associated infrastructure due to force majeure are excluded from this deadline.

In the event of delays, the awarded price is reduced by 0.2% per month for the first nine months, followed by 0.5% per month for the subsequent six months, with a maximum cumulative delay of 15 months. Beyond this limit, GSE will revoke the award and enforce the final performance guarantee; if the plant is subsequently re-admitted to the support mechanism, the awarded price will be further reduced by 5% from the original level.

Within 60 days of the decree's entry into force, MASE will approve the mechanism's access operating rules upon GSE's proposal; within the following 30 days, GSE will publish the pre-certification application notice.

The decree allows facilities located in neighboring countries to participate, provided that a corresponding agreement exists between Italy and that country.

Access to the FerX mechanism can only be combined with one of the following measures: capital subsidies covering up to 40% of investment costs (applicable to new facilities); guarantee funds and revolving funds; or tax incentives in the form of tax credits or deductions from corporate income for investments in machinery and equipment.