Energy Production from Renewable Sources in the Italian Power System: Regulatory Issues and Emerging Answers

The exponential increase of the energy production from renewable sources and in particularthe variability and low predictability characteristics of wind and solar technologies andthe growth of distributed generation are calling the current design of the Italian electricity systemsinto question. This paper analyzes the economic and regulatory issues arising from therecent development of the Italian power system and discuss the answers provided by the Governmentand the regulatory authority with specific reference to the renewable support schemesand to the regulation of the dispatching service and unbalancing charges. Finally, some policyimplications are drawn.