Italy"s energy services operator, Gestore dei Servizi Energetici (GSE), has launched the country"s first dedicated floating photovoltaic (FPV) auction.
The initiative is framed within the FER2 scheme, which supports innovative renewable technologies.
It allocates 50⬯MW for systems to be installed on inland water bodies.
The deadline for submitting bids is set for 5 September 2025.
The auction structure introduces differentiated tariff caps based on system size.
Projects between 1 and 300⬯kW may access a 0.090/kWh ceiling, while those above 1⬯MW are subject to a 0.0728/kWh limit.
Systems between 300⬯kW and 1⬯MW are not eligible in this specific call.
Projects larger than 300⬯kW must submit a minimum 2% discount below the tariff cap to be ranked.
In contrast, projects below 300⬯kW will be accepted in chronological order until the quota is filled.
Installations must be located on inland waters, such as reservoirs, artificial lakes or irrigation ponds.
The auction does not cover marine-based or coastal floating systems.
Bidders must hold legal rights over the site and comply with environmental and technical standards required for floating solar technology.
All awarded projects will be granted a 20-year Contracts for Difference (CfD) agreement with GSE.
This model ensures a fixed reference tariff over the contract period: if the market price is lower than the awarded tariff, GSE will compensate the difference; if the market price is higher, the developer must return the surplus.
This structure offers long-term revenue stability while aligning incentives with market performance.
The auction is part of the FER2 decree"s Procedure Type D, which also includes geothermal and advanced biomass projects.
In case of a tie in bidding conditions, priority is given to projects with earlier application dates, based on the official submission timestamp.
Italy has previously held ground-mounted solar auctions under the FER1 mechanism, with tariff caps around 0.078/kWh and awarded bids ranging from 0.07199 to 0.0738/kWh.
These recent benchmarks allow a comparison with the 0.0728/kWh cap set for large FPV projects under FER2.
One of the confirmed participants is Green Arrow Capital, an infrastructure fund based in Rome.
The firm is preparing a 20⬯MW floating solar project in southern Italy and expects to expand up to 100⬯MW of capacity, according to its portfolio plan.
Other developers with experience in floating technologies, such as SolarDuck, have expressed interest in the Italian market in the past, although no formal applications have been reported under the current auction.
Italy closed 2024 with a total installed solar capacity of 37.08⬯GW, having added 6.8⬯GW during that year.
The new FPV auction seeks to expand capacity using non-arable and underutilised surfaces, reducing land-use competition in a market aiming to accelerate renewable growth.
The sector now awaits the results of the tender to assess how many bids are submitted, what levels of discount are offered, and which players lead this emerging segment.