New regulation for offshore wind in Italy, necessary to kick-start the development, is expected to be approved any day now.

Clarity on regulation has long been high on the wish list of the many developers in Italy, but the new regulation may only include auctions and support for floating offshore wind, leaving the announced fixed-bottom projects in an uncertain situation.

Offshore wind auctions for 3.5 GW in Italy between 2022 and 2026

The FER II Decree, which is the long-awaited regulation specifying the offshore wind framework, was circulated in a draft version in March earlier this year.

The draft regulatory framework contains plans for auctions totaling 3.5 GW between 2022 and 2026 for floating offshore wind, where subsidies are awarded as 20-year contracts-for-difference. The first auction will have an auction price cap of 165 EUR/MWh, according to the draft.

While the draft regulation provides clarity and subsidies for floating offshore wind, fixed-bottom projects in Italy are potentially left with a tough route-to-market without subsidies.

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