The Italian electricity regulator Gestore dei Servizi Energetici (GSE) has published the results of the latest tender for the support of agri-PV systems. Rome is funding the construction of a total of 540 projects of this type with a total capacity of 1,548 megawatts.

Bids with 1.7 gigawatts registered

Agri-PV is the only option in Italy for constructing solar plants on agricultural land. All other forms of solar parks on such land are not permitted. However, to support the growth of photovoltaics, the Italian government issued a decree in December 2023 to support agri-PV systems. Part of the funding is granted in the form of an investment subsidy. A second part of the funds will be awarded in the form of market premiums (contract for difference). A total of 643 projects with a total output of 1.7 gigawatts took part in the tender for these subsidies. As many as four out of five proposals were approved by the GSE.

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EU money used

The tender took place as part of the Italian government’s National Recovery and Resilience Plan (Piano Nazionale di Ripresa e Resilienza – PNRR). Rome is using this plan to distribute the financial resources that Italy has received from the EU from the Next Generation EU economic stimulus package. After all, there is almost 200 billion euros in this funding pot.

Agri-PV project with 48 megawatts of power to be built in Sardinia

Farmers show great interest in solar energy

This is intended to finance digitalisation, innovation, the energy transition, the development of infrastructure for sustainable mobility, education and research, cohesion and inclusion as well as healthcare. „It is a very encouraging result that confirms the optimal definition of the measure provided for in the PNRR, but above all confirms the immense interest of agricultural businesses in solutions that enable high-quality food production with parallel renewable energy solutions,“ emphasises Gilberto Pichetto Fratin, Minister for the Environment and Energy Security, with regard to the many applications for the promotion of agri-PV systems.

Farmers have to be involved

Finally, a prerequisite for participation in the tender was that the project is not only implemented by EPC companies. Rather, at least one agricultural business must be directly involved in the project. A portion of the tendered capacity is also reserved for smaller plants with a maximum power of one megawatt, which are financed by the farms themselves. In addition, the systems may not significantly impair agricultural production. For this reason, support is primarily granted for systems that are either vertically mounted or whose modules are moved using a tracker.

How to activate agricultural areas to produce solar electricity

Agri-PV from 200 kilowatts to over 200 megawatts

There is a correspondingly wide range in the size of the systems that receive support. For example, a farmer in Sicily will install an agri-PV system with an output of 199 kilowatts. However, an agri-PV power plant with an output of 213.7 megawatts will also be built in Sicily under the leadership of the project planner Sun Project. (su)





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 At the current stage almost all installations have been completed and we are proceeding with the final certification and commissioning of the systems.  As of today about 2/3 of the systems are already on line and the rest are planned to go online by year’s end.  The project has been approved for funding under the EU Resilience and Recovery program.

 In the context of increasing the Renewable Energy share in the Republic of Cyprus and being in line with the EU energy regulations for public buildings, the Electricity Authority of Cyprus (EAC) and the Ministry of Education, Sport and Youth signed a cooperation agreement in 2019, for the installation of rooftop PV systems, water insulation and thermal insulation systems in existing public schools, in Cyprus. The agreement covers 405 public schools with a total PV capacity of nearly 5 MWp under a Net-Metering scheme. Under the agreement, EAC has undertaken the complete management of the project, on the behalf of the Ministry. The project has been approved for funding under the EU Resilience and Recovery program.

Estimated 40% energy savings

After EAC analyzed ~730 school electricity bills, visited and inspected ~530 public schools, the final parametrization indicated that:

–          405 schools can receive a rooftop PV system

–          The PV systems can be categorized in 4 typical system sizes of 3kWp, 5kWp, 10kWp and 20kWp, for a total PV capacity of 4,85 MWp

–          A total rooftop area of ~48,000m2 was in need of waterproofing works

–          A total rooftop area of ~88,000m2 needed thermal insulation works

The combined effect of the installation of the PV systems and the thermal insulation works has been estimated to yield a 40% energy savings in the schools.

Several tenders to encourage participation of local companies

Considering the size, geographical extent, nature and needs of the project, it was deemed that allocating the project as a whole would present several problems. The residential/commercial PV market in Cyprus is characterized by many small- to medium-sized companies. Setting participation criteria for the entire project would mean that most, or all, of the local companies would be ineligible to participate, unless they form consortia and submit joint bids, thus limiting competition. Also, awarding the entire project as a single contract would mean that the successful Tenderer would be hard-pressed to meet the project deadlines. 

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The project was divided in 11 packages, each having approximately 30 – 40 schools and each Tenderer could submit bids for any, or all, packages and could be allocated up to 3 packages depending on their techno-economic capability.

EAC

Another PV installation on a public school in Cyprus.

Based on the above, EAC designed a special, novel and a fully transparent Public Tendering Procedure, driven by a Mixed Integer Linear Programming (MILP) algorithm, which allocated the packages in a way that minimized the total project cost. The method was published as an article at the highly respected Renewable Energy Journal, under the title of “Enhancing expansion of rooftop PV systems through Mixed Integer Linear Programming and Public Tender Procedures”.

The main outcomes of this approach are:

–          16 Tenders were received showing that the project drew the attention of various small-medium and big sized PV companies

–          A high-level of competition was achieved with an average bidding price of ~1300 €/kWp, including roof waterproofing and thermal insulation works, compared to the initial estimated budget of ~1750 €/kWp

–          EAC signed 5 different Design and Build Contracts with different Contractors, in early 2021, at a price of ~€5,9 mil.

–          Compared to the estimated initial budget of €8,4 mil, with this novel method of public procurement, EAC managed to achieve savings of ~30%.

In cooperation with the Contractors, the work methods were adjusted to minimize any disruption to the normal school operations and strict H&S processes were put in place to ensure the safe completion of the works.  In spite of various difficulties and unforeseen situations faced during the project, due to the effects of the COVID-19 pandemic and supply chain disruptions, at the current stage nearly all installations have been completed and EAC is proceeding with the final certification and commissioning of the project. As of today, about 2/3 of the systems are already online and the rest are planned to go online by year’s end.

Planned monitoring platform

Finally, to enable the effective monitoring and management of the PV systems, EAC has proceeded with an open tender procedure for purchasing a platform specialized in intelligent monitoring and asset management for rooftop PV systems.  At the current stage, EAC has finished the evaluation of the tenders received, and is expected to sign the Agreement for the monitoring platform within the current month.

The successful completion of the project is a significant milestone in upgrading public sector buildings in Cyprus, in line with EU guidelines. (hcn)

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