1. Renewable energies The Italian experience in Photovoltaics Paolo Zavatta ANIE/GIFI – Member of the Board Renewable energies The Italian experience in Photovoltaics Paolo Zavatta ANIE/GIFI – Member of the Board

2. 2 ANIE Federation ANIE, member of Confindustria, is a Federation of 11 Associations and represents over 1,200 Italian manufacturing companies operating in the Electrical and Electronic sectors. ANIEplays a significant role in promoting and safeguarding the competitiveness of member companieson national and international market. ANIE plays a significant role in promoting and safeguarding the competitiveness of member companies on national and international market. ANIE firmly believes in the importance of cooperating with local Governments, Authorities and Companies; cultural exchange and technology sharing are points of strength for a mutually beneficial growth. ANIE firmly believes in the importance of cooperating with local Governments, Authorities and Companies; cultural exchange and technology sharing are points of strength for a mutually beneficial growth.

3. 3 3 The Italian industry is placed in 3rd position in Europe by size of turnover ANIEsystem supplies the technologies for public and private infrastructure: ANIE system supplies the technologies for public and private infrastructure: 1,200 member companies1,200 member companies 63 billions € of global turnover63 billions € of global turnover 26 billions € of export (46% on global turnover)26 billions € of export (46% on global turnover) 400.000 employes400.000 employes ENERGY INDUSTRYBUILDING CULTURAL HERITAGE TRANSPORTTLC ANIE in figures

4. 4 High-Tech Industries: 31% Medium High-Tech Industries: 69% ANIE represents the industrial manufacturing sectors of High and Medium High-Tech broken down by turnover as following… of which: Household Appliances (22%) Power (13%) Components and Devices for Electrical Installation (8%) Lighting (7%) Electrified Transport (6%) Lifts and Escalators (5%) Cables (5%) Security and Building Automation (3%) of which: ICT (16%) Electronic Components (9%) Automation and Instrumentation (6%) Source: ANIE

5. 5 Italian total exports of Electrotechnicals and Electronics % distribution by geographical area 46.2% 8.8% 11.8% 6.3% 8.6% 7.1% 2.3% 7.2% 1.7% EU-15 Member Countries EU-12 New Member Countries Europe - Extra UE Africa America Middle East Central Asia Far East Australia & Oceania Source: processing ANIE on Istat data

6. 6 Fonte: elaborazioni ANIE su dati Istat Trade Balance Italy - Lebanon Electrotechnicals and Electronics Source: processing ANIE on Istat data

7. 7 ANIE/GIFI – Italian PV industry association Part of Confindustria; From 13 years supporting the Italian PV industry: manufacturers, wholesalers, systems integrators, EPC, project designers and installers; About 200 members; Over the 50% of the national market; Based in Milan.

8. 8 The Italian PV industry PV modules production (fonte: Photon Italia, 2012) Wholesalers Installation and design (fonte: Energy & Strategy Group, 2012) PV inverters production

9. 9 The Italian PV market Increasing investments in the sector Italy, leading PV market 2011 PV market development

10. 10 The Italian PV market Power classes vs Power installed Update 2011PowerN° of plantsCost TOTALS 12,95 GWp 337.383 5,6 bln€/y

11. 11 Italian PV Legislation Preliminary remarks Approximate national objective: 23 GW by 2016; Limited incentive fee expense: 6 billion euros /year; Once limit is achieved, feed‐in tariffs will be revised by means of a new ministerial decree. 4 Conto Energia

12. 12 Italian PV Legislation 4 Conto Energia Transition period 2011/2012 Feed in premium system (net metering + sale of electricity) CAP – only for large plants (over 1 MWp) Access to feed‐in tariffs – Large plants (over 1 MWp) can access feed‐in tariffs on two conditions: The plant must be registered on electronic list: registration can not be traded; Registration system started the 1 September 2011 (provided that calls open well before); Certified completion of works must be provided within 7 months from the publication date of the ranking (9 months for plants over 1 MW); Grid Operators to verify the completion of works; The tariff is awarded at the connection to the grid.

13. 13 Italian PV Legislation 4 Conto Energia From 2013 to 2016 No CAPs but semestral targets; Should specific semestral expense limits be exceeded tariffs will be further reduced; All‐inclusive tariff + premium for self-consumption; Grid Operators to compensate PV owners in case of delays; Smart Inverters mandatory from 2013; PV modules producers to adhere to Recyclying International recognised systems; PV modules at least 10 years warranty;

14. 14 MWp unit Mln€/y Update 2011PowerN° of plantsCost TOTALS 12,95 GWp 337.383 5,6 bln€/y Market vs Legislation

15. 15 Forthcoming legislation Our role is to negotiate with the Government the best conditions for the proper support to the market and to the national PV industry Main remarks Still under discussion, to be published in June 2012 Reduction of incentive for the transition to grid parity Register for all PV systems above 12 kWp Budget between 6 and 7 billions euro/year Premium for asbestos roofings removal 5 Conto Energia

16. 16 Conclusions Support to PV sector must be considered with an adequate phase-out defined and agreed with the industry in order to reach the fullest competitiveness; Avoid sudden changes to legislation which would cause market shake up and several companies to disappear; Maintain adequate balance between investments and ROI/IRR

17. 17 Thank you for your attention