Italy green energy support cuts to hit investment

April 5, 2012 by  
Filed under Green Energy News

* Green incentives to hit 9 bln euros under current scheme

* Investments on hold pending incentive regime changes

* Foreign investors exit could hurt Monti government

By Stephen Jewkes and Svetlana Kovalyova

MILAN, April 5 (Reuters) – Italy’s plan to scale back its
generous renewable energy incentives will cut energy costs for
families and industry but companies in the sector say the move
will deter investment that is urgently needed by the government
to create jobs.

Italy’s green power industry has boomed in recent years as
investors from around the world poured billions of euros into
the sector, lured by the support measures.

But with state incentives ballooning to 9 billion euros
($11.81 billion) this year, Rome has decided to cut the support,
which has further burdened household and industrial consumers
who pay for it through power bills that are among the highest in
Europe.

Solar incentives alone are expected to hit the 6 billion
euro mark this year, four years earlier than expected. Rome
says the average Italian family would have to pay 120 euros in
2012 to support renewable power, up from 30 euros in 2009.

Companies in the renewables sector say, however, that the
latest decision, one of repeated changes in the system that have
caused uncertainty, will pour cold water on inward investment.
  Continued…

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