Italian PV market set for disaster as new incentive budget could be blown

The budget available to for Italy’s Conto Energia V PV incentive program could be cut to less than half of the intended amount according to the latest report from IMS Research.

07/23/2012


IHS has acquired IMS ResearchThe budget available to for Italy’s Conto Energia V PV incentive program could be cut to less than half of the intended amount, wiping out any FIT budget for 2013 and significantly reducing the outlook for installations in Italy over the next three years, according to the latest report from IMS Research (recently acquired by IHS Inc.). The research firm’s latest quarterly PV Demand Database report reveals that whilst the new feed-in tariff (FiT) scheme could have supported an additional 7.5 GW of installations over the next two years, it is now likely that it will result in just 3 GW of additional installations, with the FiT closing as early as 2013.

The Gestore dei Servizi Energetici (GSE) announced on 12th July that the annual cost of PV incentives had reached $7 billion, triggering the 45 day notice period for the introduction of the country’s new Conto Energia V feed-in tariff (FiT) on 27th August 2012. The new scheme was intended to be accompanied by an additional annual budget of $850 million and is due to end when the total annual cost reached $8.1 billion. However, a large number of installations were completed in the first half of the this year in order to benefit from the previous Conto Energia’s generous rates and these are not yet all included in the official GSE statistics. As a result, this official annual cost figure has continued to rise since the announcement just over a week ago and already exceeds the $7 billion threshold by nearly $121 million.

PV installations in Italy by incentive scheme. Source: IMS Research (IHS Inc.)

“Based on various supply chain checks, IMS Research estimates that around 3 GW of installations will have been completed by the time Conto Energia V is introduced in August,” commented Sam Wilkinson, Senior PV Analyst at IMS Research. “Currently the official GSE statistics show 1.8 GW of installations and a cost of $7.4 billion. Once these figures catch up with reality, this will take the annual cost of incentives to around $7.7 billion, and will reduce the additional budget available for new Conto Energia V installations to just $363 million.”

The report revealed that the severely reduced budget available to the new incentive scheme has led to a significantly reduced long-term outlook for Italy. The latest forecast released by IMS Research predicts that installations in Italy will now decline for the second consecutive year in 2013 and fall to less than 3 GW for the first time in since 2009. “Whilst Italy has consistently been one of the largest markets in the world, 2013 will see it fall outside the top-three markets for the first time in five years,” added Wilkinson.

IMS Research predicts that had the full $847 million of additional budget been available to Conto Energia V installations, Italy could have maintained its leading position in the global market, installing over 7 GW over the next two years. “Unless additional budget is made available or further changes are made to the incentive scheme, it looks likely that Italy’s PV market will need to survive without incentives starting from 2013. Italy does have favorable conditions for PV and some installations will continue without incentives, particularly in the south of the country, but this will not be enough to maintain the market at its current size for some years,” concluded Wilkinson.



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Leaders Under 40 program features outstanding young people who are making a difference in manufacturing. View the 2013 Leaders here.
The new control room: It's got all the bells and whistles - and alarms, too; Remote maintenance; Specifying VFDs
2014 forecast issue: To serve and to manufacture - Veterans will bring skill and discipline to the plant floor if we can find a way to get them there.
2013 Top Plant: Lincoln Electric Company, Cleveland, Ohio
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Bring focus to PLC programming: 5 things to avoid in putting your system together; Managing the DCS upgrade; PLM upgrade: a step-by-step approach
Balancing the bagging triangle; PID tuning improves process efficiency; Standardizing control room HMIs
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software

Annual Salary Survey

Participate in the 2013 Salary Survey

In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.

Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.

2012 Salary Survey Analysis

2012 Salary Survey Results

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.