Italy Green Boom May Stutter Over Incentive Doubts
Uncertainty over the future of generous incentive schemes is a major risk factor for the green energy sector in Italy, which has blossomed after rival Spain lost its allure by cutting down on sweeteners for investors.
Incentives designed to help Italy catch up with European Union efforts to fight climate change have attracted funds from investors ranging from families to private equity funds and sports car maker Ferrari.
As a result, shares in nine Italian renewable energy companies listed on Milan's bourse have been rising since April and the trend remains positive if the incentives stay, according to Althesys Strategic Consultants, which compiled the Italian Renewable Index (IREX).
But pressed to ease the budget deficit -- expected to run at 5.3 percent of GDP this year -- Rome plans to cut incentives for the solar sector which guarantee steady returns for 20 years and has announced changes to a market-based green certificate scheme which supports wind power generation.
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