Introduction of the Green Certificates System

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 12 May 2014

The 1999 Electricity Liberalization Act and Decrees from Italys Ministries of Trade and Industry and of Environment (MICA Decree 11/11/99) introduced a cap and trade mechanism to promote renewable energy sources. It required Italian energy producers and importers (producing or importing more than 100 GWh/year from conventional sources) to fed into the grid a certain quota of RES electricity. A 2% quota obligation was set, strengthened in 2003 and again in 2008. Producers and importers can comply with the obligation by means of green certificates they can buy through bilateral contracts or participating to the green certificates platform (managed by GME, the energy markets operator). Green certificates may be granted to the electricity produced by entitled renewable energy plants, located in Italy or in Countries with similar support mechanisms on the basis of reciprocity. Renewable plants that came into operation before 31 December 2007 can obtain green certificates for 12 years. The initial size of each Green Certificates was 100 MWh. Subsequent regulatory interventions have increased the incentive period up to 15 years and reduced the certificate size first to 50 MWh before and then to 1 MWh. Also the quota obligation was revised over the years providing an annual increasing growth of +0,35%/year from 2004 to 2007 and +0,75%/year after 2007.

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