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Policy & Regulation

Italy gets tough on coal-to-power subsidies

Italy’s revised capacity market will bar coal-fired power plants from auctions starting this year, while new or heavily refurbished gas-fired plants can bid for contracts with a duration of up to 15 years Italy’s revised capacity market will bar coal-fired power plants from auctions starting this year, while new or heavily refurbished gas-fired plants can bid for contracts with a duration of up to 15 years.
By Andreas Walstad 21 June 2019 Europe & Russia / Policy & Regulation 0 34334
The Altomonte CCGT facility in Italy. (Edison)

Italy will not allow coal-fired power plants to participate in capacity auctions under its revised scheme, more than five years before EU regulations make such restrictions obligatory. The country’s revised capacity market – where plant operators are paid to commit production capacity for the future – was approved by the European Commission late last week, and the first auction is scheduled to take place later this year.

The strategy fits with Italy’s plan to phase out...