Four adjustments of grid-connected electricity prices could not stop the rapid development of photovoltaic Italy Italy announced in 2003 to subsidize on-grid PV electricity prices, then the agreed time limit was 20 years, and the policy took effect on September 19, 2005. At the beginning, the subsidy standard was set high, and the FIT of large-scale photovoltaic projects could reach 49 euro cents/kWh. Italy stipulates that the size of the subsidy should not exceed 100 megawatts. However, only nine days after the subsidy program was announced, the declaration index was in jeopardy, and it was less than two months later. The declared scale exceeded 300 megawatts. By the end of 2006, the number of PV projects that applied for subsidies was nearly 500 MW.
In the 2006 Italian government general election, the new Prime Minister Romano Prodi appointed the leader of the Green Party Alfonso Picoraro Scano as the Minister of the Environment. Once Skanio took office, he reformed the FIT mechanism, canceled the ceiling of the subsidy, and set up a new regulation in 2007: the VAT of PV products was reduced from the original 20% to 10%, and the declaration process was simplified. In addition to subsidies slightly tilted towards large-scale PV projects, the entire mechanism has not changed substantially. As a result, the original intention of the government to control the size of the market was frustrated and it developed toward a worse trend. In 2008, Italian PV installed capacity increased fivefold year-on-year, from 87 MW in 2007 to 432 MW. The government is shouldering more and more heavy subsidies. In 2008, the industry-wide subsidies amounted to 110 million euros. In 2009, the speed of market expansion continued to increase. Photovoltaic installed capacity tripled to 1.144 GW, and the on-grid tariff subsidies increased by 303 million euros.
While the burden of subsidies has become increasingly heavy, the prices of photovoltaic panels have fallen sharply. In 2008, Berlusconi took over the government. After the middle-right government took office, it held fierce discussions. Italy finally enacted the Third Energy Act in 2010. Its core was interpreted by the outside world as a downward adjustment of FIT. In order to achieve the EU's overall climate change and energy goals, Italy has also formulated its own photovoltaic development plan: It is planned that by 2020, the national PV installation capacity will reach 8 GW. However, many market participants believe that the target of 8 GW is too ambitious and is likely to fail.
However, the struggle between the regime change and the political line did not stop the momentum of the expansion of the photovoltaic market. In 2010, the installed capacity of photovoltaics again increased twice as compared with the same period of last year, expanding to 3.47 GW, and the subsidy scale also increased to 800 million euros. The government came to the end and found that the reduction in FIT was not enough and further reforms were needed. In mid-2011, the Italian government enacted the energy bill for the fourth time, stipulating that FIT will be reduced year by year and that the ceiling for the annual subsidy declaration scale will be restored (established in 2005 and cancelled in 2007 - editor's note).
However, smart PV manufacturers soon discovered the loopholes. The 2010 version of the Energy Act stipulates that PV power stations that are put into operation before June 30, 2011 can enjoy on-grid tariff subsidies according to the 2007 standard, and the 2007 standard is set very high. As a result, the subsidy application flew like a snowflake, resulting in the government being unable to complete the review within the statutory 60-day period. Most industry experts believe that although there will be a large number of projects that cannot be completed within the time limit, the owners will still submit applications in advance in order to get subsidies. Of course, at the moment, there is no measure of the number of items that can't count “illegal†operations, and there is no way to figure out which items are “violatedâ€.
In short, as of the end of 2011, Italian PV installed capacity reached 12.75 GW. The total on-grid tariff subsidy is already too high to bear, and only the PV on-grid tariff was subsidized by 3.9 billion euros. It is believed that this figure will be further increased, but the growth rate will be slightly lower than in previous years. I believe readers will be able to guess why: Italy is studying the issuance of the Fifth Energy Act. However, the problem of photovoltaic power generation is not just a simple matter of the burden of subsidies. Photovoltaic power generation accounts for a small proportion of the entire power market and is an obstacle to the development of the industry.
Photovoltaic Development Raises Power Supply and Demand Balancing Costs On March 30, 2012, Italian power users received a bad news: Aeeg announced that it will increase civilian electricity prices by 9.8 percentage points, of which 4% will be used to pay for renewable energy. Energy subsidies, the remaining 5.8% are used to balance the burden of renewable energy on the grid. Aeeg also stressed at the time that PV subsidies in 2012 will increase to 6 billion euros. In July, due to the drop in market electricity prices and the increase in subsidies and balance of electricity supply and demand costs, civilian electricity prices rose by 0.2% again.
To understand exactly what is going on, it is necessary to find out the operating mechanism of the Italian electricity market. In the electricity spot market, supply and demand match each other. However, renewable energy power generation enjoys preferential access to the Internet. As a result, photovoltaic power stations have generated electricity. As long as they are not for their own use, power grid companies have to give priority to transmission and distribution. The daily compulsory course of GSE, the government-subsidiary agency responsible for the renewable energy subsidy mechanism and clean power market management, is to predict the amount of photovoltaic power generated the next day. The actual electricity traded in the spot market should be the same as the total electricity consumption minus the contractual electricity purchase amount. The remaining values ​​are equal after clean power generation. If clean power generation is higher or lower than the GSE forecast, power grid companies will have to resort to conventional energy power generation companies to adjust power generation in real time to meet power demand, but in this way, the cost will be much higher than normal power generation. If the proportion of renewable energy such as photovoltaic power generation is small, then the above-mentioned is not a big problem, but today's situation shows that the times are different.
In 2011, the total electricity consumption in Italy was 332.3 trillion watt-hours, and photovoltaic power accounted for 3%. It does not seem obvious, but in fact this 3% of power generation can have a huge impact on the power grid, especially if the grid is blocked, it will amplify the impact of excessive or insufficient power generation. In addition, photovoltaic power generation can only be maintained for a few hours a day, which means that photovoltaic power can only account for 3% of power demand for only a few hours a day. However, when the weather is fine, the photovoltaic power generation actually can almost satisfy the entire electricity demand.
At this time, the grid line became a major problem. Most of Italy's photovoltaic power plants are located in the sunny southern region, and the electricity load is distributed in the north. Therefore, north-south high-voltage lines are often blocked. In addition to the unobstructed “main roads,†there are technical barriers to accessing a large number of small renewable energy projects operated by local power companies.
In order to solve the above problems, the power grid company Terna requires investment in energy storage facilities. For this, the outside world has a lot of controversy. Once approved, Terna will have the power to decide on the location and management of energy storage facilities. There is no doubt that power is too great. Conventional energy companies hope to solve problems through government investment and improving their own operating mechanisms.
Regardless of which scheme is eventually adopted, it will have an impact on the market. The programs currently being discussed by the parties will not only adjust the electricity subsidies, but will also change the operating ecology of the entire electricity market: the Italian electricity market will shift from a model of full competition and full marketization of enterprises to a model controlled by the government and regulatory agencies. Therefore, market competition is very high. May be weakened. This change will also be transmitted to consumer terminals: After the price of electricity is high or low, the government will have the final say, and consumers' right to self-select power suppliers will eventually be weakened.
In the 2006 Italian government general election, the new Prime Minister Romano Prodi appointed the leader of the Green Party Alfonso Picoraro Scano as the Minister of the Environment. Once Skanio took office, he reformed the FIT mechanism, canceled the ceiling of the subsidy, and set up a new regulation in 2007: the VAT of PV products was reduced from the original 20% to 10%, and the declaration process was simplified. In addition to subsidies slightly tilted towards large-scale PV projects, the entire mechanism has not changed substantially. As a result, the original intention of the government to control the size of the market was frustrated and it developed toward a worse trend. In 2008, Italian PV installed capacity increased fivefold year-on-year, from 87 MW in 2007 to 432 MW. The government is shouldering more and more heavy subsidies. In 2008, the industry-wide subsidies amounted to 110 million euros. In 2009, the speed of market expansion continued to increase. Photovoltaic installed capacity tripled to 1.144 GW, and the on-grid tariff subsidies increased by 303 million euros.
While the burden of subsidies has become increasingly heavy, the prices of photovoltaic panels have fallen sharply. In 2008, Berlusconi took over the government. After the middle-right government took office, it held fierce discussions. Italy finally enacted the Third Energy Act in 2010. Its core was interpreted by the outside world as a downward adjustment of FIT. In order to achieve the EU's overall climate change and energy goals, Italy has also formulated its own photovoltaic development plan: It is planned that by 2020, the national PV installation capacity will reach 8 GW. However, many market participants believe that the target of 8 GW is too ambitious and is likely to fail.
However, the struggle between the regime change and the political line did not stop the momentum of the expansion of the photovoltaic market. In 2010, the installed capacity of photovoltaics again increased twice as compared with the same period of last year, expanding to 3.47 GW, and the subsidy scale also increased to 800 million euros. The government came to the end and found that the reduction in FIT was not enough and further reforms were needed. In mid-2011, the Italian government enacted the energy bill for the fourth time, stipulating that FIT will be reduced year by year and that the ceiling for the annual subsidy declaration scale will be restored (established in 2005 and cancelled in 2007 - editor's note).
However, smart PV manufacturers soon discovered the loopholes. The 2010 version of the Energy Act stipulates that PV power stations that are put into operation before June 30, 2011 can enjoy on-grid tariff subsidies according to the 2007 standard, and the 2007 standard is set very high. As a result, the subsidy application flew like a snowflake, resulting in the government being unable to complete the review within the statutory 60-day period. Most industry experts believe that although there will be a large number of projects that cannot be completed within the time limit, the owners will still submit applications in advance in order to get subsidies. Of course, at the moment, there is no measure of the number of items that can't count “illegal†operations, and there is no way to figure out which items are “violatedâ€.
In short, as of the end of 2011, Italian PV installed capacity reached 12.75 GW. The total on-grid tariff subsidy is already too high to bear, and only the PV on-grid tariff was subsidized by 3.9 billion euros. It is believed that this figure will be further increased, but the growth rate will be slightly lower than in previous years. I believe readers will be able to guess why: Italy is studying the issuance of the Fifth Energy Act. However, the problem of photovoltaic power generation is not just a simple matter of the burden of subsidies. Photovoltaic power generation accounts for a small proportion of the entire power market and is an obstacle to the development of the industry.
Photovoltaic Development Raises Power Supply and Demand Balancing Costs On March 30, 2012, Italian power users received a bad news: Aeeg announced that it will increase civilian electricity prices by 9.8 percentage points, of which 4% will be used to pay for renewable energy. Energy subsidies, the remaining 5.8% are used to balance the burden of renewable energy on the grid. Aeeg also stressed at the time that PV subsidies in 2012 will increase to 6 billion euros. In July, due to the drop in market electricity prices and the increase in subsidies and balance of electricity supply and demand costs, civilian electricity prices rose by 0.2% again.
To understand exactly what is going on, it is necessary to find out the operating mechanism of the Italian electricity market. In the electricity spot market, supply and demand match each other. However, renewable energy power generation enjoys preferential access to the Internet. As a result, photovoltaic power stations have generated electricity. As long as they are not for their own use, power grid companies have to give priority to transmission and distribution. The daily compulsory course of GSE, the government-subsidiary agency responsible for the renewable energy subsidy mechanism and clean power market management, is to predict the amount of photovoltaic power generated the next day. The actual electricity traded in the spot market should be the same as the total electricity consumption minus the contractual electricity purchase amount. The remaining values ​​are equal after clean power generation. If clean power generation is higher or lower than the GSE forecast, power grid companies will have to resort to conventional energy power generation companies to adjust power generation in real time to meet power demand, but in this way, the cost will be much higher than normal power generation. If the proportion of renewable energy such as photovoltaic power generation is small, then the above-mentioned is not a big problem, but today's situation shows that the times are different.
In 2011, the total electricity consumption in Italy was 332.3 trillion watt-hours, and photovoltaic power accounted for 3%. It does not seem obvious, but in fact this 3% of power generation can have a huge impact on the power grid, especially if the grid is blocked, it will amplify the impact of excessive or insufficient power generation. In addition, photovoltaic power generation can only be maintained for a few hours a day, which means that photovoltaic power can only account for 3% of power demand for only a few hours a day. However, when the weather is fine, the photovoltaic power generation actually can almost satisfy the entire electricity demand.
At this time, the grid line became a major problem. Most of Italy's photovoltaic power plants are located in the sunny southern region, and the electricity load is distributed in the north. Therefore, north-south high-voltage lines are often blocked. In addition to the unobstructed “main roads,†there are technical barriers to accessing a large number of small renewable energy projects operated by local power companies.
In order to solve the above problems, the power grid company Terna requires investment in energy storage facilities. For this, the outside world has a lot of controversy. Once approved, Terna will have the power to decide on the location and management of energy storage facilities. There is no doubt that power is too great. Conventional energy companies hope to solve problems through government investment and improving their own operating mechanisms.
Regardless of which scheme is eventually adopted, it will have an impact on the market. The programs currently being discussed by the parties will not only adjust the electricity subsidies, but will also change the operating ecology of the entire electricity market: the Italian electricity market will shift from a model of full competition and full marketization of enterprises to a model controlled by the government and regulatory agencies. Therefore, market competition is very high. May be weakened. This change will also be transmitted to consumer terminals: After the price of electricity is high or low, the government will have the final say, and consumers' right to self-select power suppliers will eventually be weakened.
Shaanxi Xinlong Metal Electro-mechanical Co., Ltd. , https://www.cnxlalloyproduct.com