In 2024, Italy's government implemented significant restrictions on solar photovoltaic (PV) installations on agricultural land through the Agricultural Law Decree.
The Law Decree was converted into Law no. 101 and published in Official Gazette no. 163 of 13 July 2024. This law marks a pivotal shift in Italy's approach to balancing agricultural productivity with renewable energy development.
Key Details of the Law
Date of approval: The decree was approved by the Council of Ministers on May 6, 2024, and officially published in the Official Gazette on May 15, 2024. It was converted into Law No. 101 on July 12, 2024.
Main provisions: There is a complete ban on new ground-mounted solar PV installations on agricultural land. Exemptions exist for ground-mounted solar PV plants on agricultural land permitted under specific conditions: repowering existing plants, using non-productive lands (e.g., closed quarries), areas under concession to transport operators, factory-adjacent zones, and locations near motorways. The law also allows installations on restored quarries and closed landfills.
Opening for agrivoltaic projects allows solar panels to be installed above crops without interfering with agricultural productivity.
Existing projects undergoing approval before the law's enactment are protected from these new restrictions. We will share information on a project we are engaged in in the coming weeks which meets this requirement.
Objectives and Rationale
The Italian government, led by Agriculture Minister Francesco Lollobrigida, argues that the law aims to: protect productive agricultural land from being converted into solar farms; prevent desertification and maintain land for food production; and regulate energy production to ensure compatibility with agricultural practices.
Economic Implications
Proponents argue that preserving agricultural land is crucial for long-term food security and environmental sustainability. However, the Italian solar industry has expressed concerns that these restrictions could result in significant economic losses:
The Italian solar association Italia Solare estimates a potential loss of around €60 billion in private investment and tax revenues due to the ban.
Critics argue that the government’s target of deploying 50 GW of solar power by 2030 could be jeopardised by limiting ground-mounted installations, which are considered the most efficient form of solar energy production.
Innovations Needed for Success
To align with the new law while still promoting renewable energy, several innovations are necessary:
Agrivoltaics: Development of dual-use systems that allow for simultaneous agricultural production and energy generation. This is as much a business model innovation as it is a technology one.
Advanced Technologies: Adoption of innovative solar technologies such as bifacial panels or vertical farming integrated with solar installations to enhance land efficiency.
Steps Toward Implementation
The government has outlined several steps to ensure compliance and facilitate a smooth transition under the new regulations: Clear guidelines are expected to be developed regarding areas suitable for agrivoltaic projects and ongoing discussions between government bodies and industry stakeholders aim to refine implementation strategies and address concerns raised by the solar sector.
Positive Steps Forward
Italy is well-positioned to lead the agrivoltaics market due to its favourable climate, extensive agricultural land, and supportive government initiatives. The oversubscription of its first agrivoltaic auction, with bids totaling 1.7 GW, highlights strong demand for dual-use solar projects.
With a €1.7 billion commitment to develop over 1 GW of agrivoltaics by 2026, Italy aims to become a global hub for this innovative sector, aligning agricultural productivity with sustainability goals.
This strategic focus could attract international investment and collaboration, enhancing Italy's influence in global agrivoltaic standards while contributing to the EU's renewable energy targets.
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