Italy to make PV tariff decision within 2 weeks


Although it was reported at the start of the week that the Italian Government had until April 30 to come up with a new decree, it seems as though a decision will be reached much sooner. The changes, however, will still come into play on June 1.

During a meeting between the Industrial Commission and the Senate, Paolo Romani, Italian Minister for Economic Development said that he will meet with industry operators from the PV sector this Friday. The aim of the meeting is to reportedly create a regulation, which gives certainty to the sector, so that banks, PV companies and manufacturers have the opportunity to invest.

Global implications

The changes to Italy's tarifffs will not be implemented without effects to the global PV market. Renewable Analytics analyst, Dirk Morbitzer has said that already within one week the spot market price for silicon has fallen by seven percent; consequently, module prices were also affected.

Furthermore, in a report on Monday, Götz Fischbeck, senior equity analyst for PV stocks at BHF Bank AG, said he expects to see a clear weakening of the demand for PV components. He stated: "All cell and module manufacturers, as well as wholesalers and project developers will immediately be negatively impacted by this political decision.

"Yet, as demand in Europe for PV components is bound to slow down significantly on the back of these decisions, we believe that also the order intake of the PV equipment suppliers will see a strong decline from the second quarter of 2011 onwards."

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