Strong market fundamentals for renewables, particularly solar PV, have spurred the development of a massive project pipeline in Italy, especially in the Southern regions. However, the sector faces significant challenges such as increased cannibalisation and transmission grid issues. These challenges highlight the necessity to understand how the economics of renewable energy assets are impacted by their location, whether under merchant or subsidy-driven business models.
This report addresses the critical need for investors to grasp the locational risks the Italian market design poses. It provides an in-depth analysis of how these risks expose renewable investors to locational economics, offering insights into managing and mitigating these challenges.
Access this report to answer these questions:
- How do local grid limitations influence the curtailment of renewable energy generation across different regions?
- What are the implications of the FER X CfD support schemes for auction conditions in various market zones?
- How do power price divergences within zones affect PPA contract viability and profitability?
For more information on the Italian power market please reach out to Foteini Kakavia, Commercial Associate: foteini.kakavia@auroraer.com
