Italy curbs installation of solar panels on agricultural land (updated)

Erg SA

06/05/2024 20:44

(Recasts after decree approved)
    By Giuseppe Fonte, Angelo Amante and Francesca Landini
       ROME, May 6 (Reuters) - Italy's rightwing coalition on
Monday passed rules curbing the installation of solar panels on
agricultural land, ministers said, in a move that triggered
criticism as it could undermine Rome's decarbonisation goals.
        The new rules, part of a broader package of measures to
protect farming and fisheries, included a ban on the
installation of photovoltaic systems with modules placed on the
ground in areas classified as agricultural.
  
        "We put an end to the wild installation of
ground-mounted photovoltaic (panels)," Agriculture Minister
Francesco Lollobrigida told a news conference after the cabinet
meeting that approved the measures.
  
        Agricultural lobbies -- key supporters of Prime Minister
Giorgia Meloni's right-wing government -- had long called for
limitations to the panels, saying they were incompatible with
cultivation.
  
        In contrast, environmental associations accused the
government of undermining green goals agreed with partners from
the Group of Seven (G7) wealthy nations.
  
        Last week, at the end of a meeting of G7 energy
ministers, Italy committed to triple installed renewable energy
capacity by 2030 and phase out coal-fired power plants in the
first half of the next decade.
    Energy Minister Gilberto Pichetto Fratin -- who government
officials said had initially opposed the plan -- told reporters
the new curbs would not jeopardise a government goal to install
around 38 GW by 2030 through photovoltaic plants.
        Lollobrigida said the scheme does not target
agri-voltaic projects, which place solar panels over fields and
vineyards to get double use out of the land by producing power
during periods of heavy sunlight, while still allowing crops to
grow.
  
        The government's package is now subject to scrutiny by
both houses of Parliament, which are allowed to amend it.
  
        Limits on solar plants could negatively impact energy
companies including ERG  ERG.MI  and ALERION  ARN.MI , which 
have growth targets in the solar sector, financial analysts at
Italian broker Equita said.
  
        On the other hand, a slowdown in the development of
solar capacity could be positive for power generators including
Enel  ENEI.MI , A2A  A2.MI  and IREN  IREE.MI , which may suffer
pressure on prices if solar energy accelerates, the analysts
said.
  
        Italy last year added nearly 6 gigawatt (GW) in
renewable energy capacity, mainly through the development of
small solar plants, with wind projects accounting for only 8% of
the new green capacity.
  

 (Reporting by Giuseppe Fonte and Angelo Amante in Rome,
Francesca Landini in Milan; Editing by Nick Macfie)
 ((giuseppe.fonte@thomsonreuters.com; +390680307711;))