U-Turn: Italy Plans Retroactive Solar Subsidy Cuts
On Wednesday the Italian government proposed retroactive cuts to its FiT that could see plant owners lose 10% of their revenue from the scheme.
In a proposal from the Ministry of Economic Development, PV projects over 200kW and subscribed to the FiT will be asked to accept one of two changes. They can extend the term of their FiT payments from 20 to 24 years, effectively thinning them out or take a straight 10% cut.
Foresight, which has invested more than £650 million in solar assets in the US, Italy, Spain and the UK, said the changes could trigger legal action.
“The country where the most legal action has been brought is Spain where plenty of international investors have brought legal action under the Energy Charter Treaty. Investors are evaluating whether to do so [bring a case] in Italy as well, given that Italy is also a signatory of such a treaty,” said Federico Giannandrea, partner, Foresight and head of Foresight Italy.