Photovoltaics in Italy, mechanisms of promotion: A cost-benefit analysis of the Italian "conto energia" and evaluation of externalities

Abstract

Italy is currently one of the fastest growing photovoltaic markets worldwide. The introduction of the feed-in-tariff mechanism called "Conto Energia" has raised and developed the market, contributing to the reduction of GHGs emissions and to increase the diffusion of the smart grid model. This study aims develop a cost-benefit analysis of the "Conto Energia" feed-in-tariff mechanism, by measuring all costs and benefits of electric energy produced by photovoltaics in Italy, from 2006 up to 2020. Particular attention has been given to the analysis of the fast increase of photovoltaic power installed capacity in Italy by the end of 2010. The analysis measures costs and benefits associated to "Conto Energia" system (the principal Italian photovoltaic policy support) and assesses the support profitability for the entire society by giving a monetary value to the socio-economic benefits of PV electricity promotion. © 2013 Springer-Verlag Berlin Heidelberg.