Two 29.4 MW Geothermal Plants in Italy Selected for FER2 Support List

en.Wedoany.com Reported - Italy's Energy Services Management Agency (GSE) has published the latest competitive selection results under the FER2 renewable energy support mechanism. Two zero-emission geothermal power projects have qualified for support, with a combined planned installed capacity of approximately 29.4 MW, accounting for 98% of the 30 MW geothermal quota for this round. The selected projects are developed by Pola 1 and ITW & LKW Geotermia Italia respectively, with construction sites located in the provinces of Ferrara and Terni. The projects must subsequently be completed and put into operation within the prescribed timeframe and apply for electricity price support.

The geothermal project developed by Pola 1 is located in Jolanda di Savoia, Province of Ferrara, Emilia-Romagna Region, Italy, with a planned installed capacity of 24.4 MW, ranking first on the support list for zero-emission geothermal projects in this round. The project submitted a bid discount rate of 9.79%, corresponding to the reference price of €188.18/MWh for this round in 2026.

The second selected project, developed by ITW & LKW Geotermia Italia, is located in Castel Giorgio, Province of Terni, Umbria Region, with a planned installed capacity of 5 MW and a submitted reference price discount rate of 5%. The two projects together occupy 29.4 MW of the geothermal support quota, with the Pola 1 project accounting for approximately 83% of the selected capacity.

Two other geothermal projects in Tuscany Region did not qualify for support in this round. The project planned by Magma Energy Italia in Castelnuovo di Val di Cecina, Province of Pisa, has a planned capacity of 12.69 MW, and the project planned by Enel Green Power Italia in Monterotondo Marittimo, Province of Grosseto, has a planned capacity of 5 MW. The two non-selected projects total 17.69 MW.

The FER2 support mechanism is promoted by Italy's Ministry of Environment and Energy Security and provides long-term electricity price support for renewable energy technologies with relatively high development and operating costs. Zero-emission geothermal projects adopt a contract-for-difference support mechanism with a support period of 25 years. The actual electricity price applicable to selected enterprises is related to the discount rate each submitted in the competitive selection.

According to GSE regulations, zero-emission geothermal projects that received favorable ranking in this round shall be put into operation within the prescribed 60-month period, otherwise they will face corresponding adjustments to electricity price support. After the projects are put into operation, support applications must also be submitted through the FER-E platform within 30 calendar days. This list confirms project support eligibility, not the completion of plant construction or formal commercial operation.