On 2nd of February, the Italian Regulatory Authority for Electricity Gas and Water (Aeegsi - L'Autorità per l'energia elettrica il gas ed il sistema idrico) published the average purchase price in the Italian power exchange (PUN) for the last year of 55.10€. This amount is the relevant element for the calculation of the buy back price for 2014.
How the green certificates market in Italy works?
Italian Green Certificates (CV - Certificati Verdi) are tradable instruments that the Italian network authority GSE - Gestore per Servizi Energetici grants to eligible renewable power plants, which have been commissioned before the end of 2012. The number of certificates issued is proportional to the electricity generated and varies depending on several criteria. The Certificati Verdi support scheme is based on legislation which requires producers and importers of non-renewable electricity to inject a minimum quota of renewable electricity into the power system every year. Thus the Italian Green Certificates represent proof of compliance with this renewable quota obligation. One CV is equal to 1 MWh of renewable electricity produced. Each CV has a validity of three years.
Italian Green Certificates are tradable and this can be done either via the GME Certificati Verdi Market Exchange platform or bilaterally between the interested counterparties. In order to fulfil their obligation, non-RES producers and importers may inject renewable electricity into the grid or purchase an equivalent number of CV from green electricity producers. Currently 1 CV is traded at around 96.50 EUR.
In case of oversupply of Certificati Verdi, the GSE activates a withdrawal mechanism - GSE will pay a calculated fix buy back price to the operators who wish to sell back their excess of CV. The Buy back is calculated by the following specific formula: 78%*(180 - PUN Price Aeegsi).
The Italian Regulatory Authority for Electricity Gas and Water (Aeegsi) is an independent body which regulates, controls and monitors the electricity and gas markets in Italy. Its goals are to protect the interests of all users and consumers, to promote competition and to provide efficient, cost-effective and profitable nationwide services with satisfactory quality levels.
The Italian network authority GSE is a state-owned company which promotes and supports renewable energy sources (RES) in Italy. GSE fosters sustainable development by providing support for renewable electricity (RES-E) generation and by taking actions to build awareness of environmentally efficient energy uses.