Join us on our journey towards renewable energy excellence, where knowledge meets innovation.
Italy's Ministry for the Environment and Energy Security has signed the definitive FER X decree, the support scheme that will govern new renewable capacity once the current transitional regime expires. Minister Gilberto Pichetto Fratin signed the text on 18 June, ten days after the European Commission cleared it as compatible with EU state aid rules on 8 June, under the Clean Industry State Aid Framework.
The decree sets a maximum quota of 37.15 GW of new renewable capacity, backed by €23 billion in state aid. Ten gigawatts are reserved for installations up to 1 MW, which access the support directly without bidding. The remaining 27.15 GW go to larger plants through competitive auctions run by GSE, split 16.5 GW for onshore wind, 10 GW for solar PV, 630 MW for hydro and 20 MW for plants using residual purification gas.
FER X definitivo uses a two-way contract for difference. If the market price falls below the strike price a project secures at auction, the state pays the difference. If the market price rises above it, the generator pays the difference back. The structure caps downside for developers while limiting windfall gains for the state when prices run high, the same logic Italy applied under the transitional FER X regime that has been in force since February 2025.
The decree still needs to clear an accounting review by the Ragioneria Generale dello Stato and be registered by the Corte dei Conti before it is published on the MASE website, where it enters into force the day after publication. Once that happens, GSE has 60 days to approve the operating rules, including the simplified access procedure for sub-1 MW plants and the calendar for the competitive auctions, and ARERA has 90 days to set the auction reference prices. Current reporting points to the first competitive auction opening after the summer, with bidding expected in December 2026 and two further rounds in 2027.
For Italian wind and solar developers, FER X definitivo is the mechanism that will set the floor for new-build economics once it opens. A strike price secured through the auction route removes downside risk but also caps upside when prices are strong, which is exactly the trade-off PPA and merchant routes price differently. With 16.5 GW of onshore wind and 10 GW of solar capacity competing for auction slots over the next several rounds, developers that model the CfD strike price against achievable PPA terms before bidding will have a clearer view of which route, or which blend of the two, suits a given site.
Synertics tracks PPA pricing and route-to-market economics across the Italian market alongside the rest of the markets we cover. To compare FER X auction economics against current PPA terms for your assets, try the PPA Tool at https://synertics.io/signup/ or reach out at info@synertics.io.
5 min
Insights, Market-trends, Announcements
30th Jul, 2026
5 min
Insights, Market-trends, Announcements
30th Jul, 2026
3 min
Insights, Announcements
29th Jul, 2026
