Background
With the MASE Decree of 18 June 2026 and the subsequent GSE Operating Rules of 7 August 2026, the incentive mechanism known as “Definitive FER-X Scheme” has finally become fully operational. The mechanism is designed for renewable energy projects with generation costs close to market competitiveness and, in particular, for (a) photovoltaic plants; (b) wind farms; © hydroelectric plants; and (d) plants for the treatment of gas resulting from wastewater treatment processes (the “Definitive FER-X Scheme”).
At a high level, the Definitive FER-X Scheme replicates the model already introduced under the transitional regime. Access to the mechanism continues to follow two different routes, depending on the plant’s capacity:
(i) direct access for plants with a capacity of 1 MW or less that commenced construction after the Decree entered into force and for which the award price is administratively determined by ARERA;
(ii) access through competitive procedures (i.e., descending-price auctions conducted by the GSE) for plants with a capacity exceeding 1 MW, with separate capacity quotas for each technology and an award price determined on the basis of the bid submitted by the bidders below the applicable ceiling exercise price.
Precisely with respect to the latter route, one of the most significant innovations introduced by the Definitive FER-X Scheme is the establishment of a preliminary phase, separate from the competitive procedure, focused on obtaining preliminary qualification for the plant.
It should be stressed from the outset that this is not merely a preliminary formal step towards participation in the auction.
At this stage, in fact, the GSE conducts a genuine early-stage assessment, verifying the subjective and objective requirements applicable to the project, as well as any priority and award criteria that will be relevant to the subsequent competitive procedure.
Accordingly, access to the incentives is structured around the following three stages:
- obtaining preliminary qualification;
- submitting an expression of interest;
- submitting the application to participate in the competitive procedure.
The application for preliminary qualification must be submitted before the expression of interest, and obtaining such qualification constitutes a necessary condition for participation in the subsequent stages (i.e., the expression of interest and the competitive procedure).
For the first competitive procedure, scheduled for December 2026, the deadline for submitting an application for preliminary qualification was set at 30 September 2026.
Preliminary qualification: key requirements
The introduction of preliminary qualification is primarily intended to prevent competition between projects at materially different stages of development and to bring forward the verification of a significant portion of the requirements that must be met for a project to be eligible for participation.
These requirements include, in particular, the objective requirements already applicable under the transitional regime, albeit at a later stage, including the following:
- from an authorisation perspective, the applicant must hold a valid and effective authorisation or permit for the construction and operation of the plant. For plants other than photovoltaic plants, however, preliminary qualification may also be requested on the basis of a favourable Environmental Impact Assessment (“EIA”) decision or a decree determining that the project is not subject to an EIA.
This distinction is particularly relevant for photovoltaic plants. For such plants, a favourable outcome of the environmental assessment procedure is no longer sufficient: for the purposes of applying for preliminary qualification, the relevant authorisation or other enabling title must already have been issued.
The Operating Rules further clarify that, with respect to projects authorised:
- through a PAS (Procedura Abilitativa Semplificata, i.e. Simplified Authorisation Procedure) – and, it is assumed, although this is not expressly specified by the applicable rules, also projects authorised through an Autorizzazione Unica (Single Authorisation) – preliminary qualification may only be requested following publication of the relevant authorisation in the BUR (Bollettino Ufficiale Regionale);
- through authorisations formed by operation of silence of consent (i.e., PAS), the applicant must provide evidence that the authorisation has been duly perfected and of the date on which the application was received by the competent authority;
- under the free-activity regime (“attività libera”), the applicant must submit a sworn report prepared by a qualified technical professional certifying that the project falls within the relevant regulatory regime and complies with the applicable conditions laid down by law;
- as regards grid connection, photovoltaic plants must have a definitively accepted grid connection offer and the plant must have been registered on the GAUDÌ system, with such registration validated by the relevant grid operator.
For plants other than photovoltaic plants for which preliminary qualification is sought solely on the basis of an EIA decision or a decree determining that the project is not subject to an EIA, the application may be submitted even if the plant has not yet reached the “Validated Plant” status on the GAUDÌ system (in such cases, the applicant must indicate “Not Available”).
Accordingly, the project’s authorisation, grid connection and technical configuration must be sufficiently consolidated before the project proceeds to the subsequent expression-of-interest and competitive-procedure stages.
Furthermore, compared with the FER-X Transitional Scheme, the new regime appears to reflect a clear preference for wind technology over the more established solar energy sector, as discussed in greater detail in our previous contribution [link].
Preliminary qualification and the “crystallisation” of project data
The most significant feature of the preliminary qualification mechanism is the “crystallisation” effect it produces with respect to individual projects.
The Operating Rules provide that the data stated in the application may not be amended either at the expression-of-interest stage or when applying to participate in the competitive procedure.
Accordingly, if changes were required — for example, in relation to the plant’s capacity, location or the application of priority criteria — the applicant would have to cancel the preliminary qualification application already submitted and submit a new one.
This is particularly relevant with respect to priority criteria, which apply, inter alia, to:
- interventions on existing photovoltaic plants located in agricultural areas that do not result in any increase in land take;
- plants located entirely within suitable areas or acceleration areas;
- plants for which a PPA with a term of at least 10 years has been entered into.
In the latter case, the PPA must be registered on the platform operated by GME before the application for preliminary qualification is submitted, together with the information necessary to identify the relevant plant.
Such elements therefore cannot subsequently be supplemented or amended shortly before the competitive procedure in order to improve the project’s position. Instead, these matters must be properly planned and, where necessary, finalised before the preliminary qualification application is submitted.
The same principle applies to procedures dedicated to NZIA-compliant plants. The applicable award criteria must be declared at the qualification stage, and certain of the relevant characteristics must already be reflected in the project documentation.
The 30 September deadline and next steps
Preliminary qualification remains valid for a non-extendable period of two years from the date on which the relevant qualification decision is issued.
Once this period has expired, any applicant wishing to participate in a subsequent competitive procedure must submit a new application and obtain a new preliminary qualification.
30 September 2026 was the final deadline for submitting an application for preliminary qualification in connection with the first competitive procedure.
For applications submitted by that date, the GSE guarantees that the outcome of its assessment will be communicated in sufficient time to enable participation in the relevant procedure, subject to any suspension of the applicable procedural deadlines, including, for example, where the GSE requests additional information or issues a prior notice of rejection due to deficiencies in the documentation submitted.
Following the first procedure, further auctions are expected to be held every three months until June 2028, for a total of seven sessions. These are expected to be supplemented by four procedures dedicated to photovoltaic and wind projects meeting the NZIA criteria.
For subsequent procedures, an application for preliminary qualification may be submitted at any time through the relevant functionality of the FER-X portal. The qualification will be issued within 90 days from the date of submission of the application, excluding any periods during which the procedural deadline is suspended as a result of the submission of additional documentation and/or comments following a request for further information or a prior notice of rejection, as well as any other periods not attributable to the GSE.
It will therefore be the responsibility of the relevant operator to submit the preliminary qualification application within a timeframe compatible with participation in the competitive procedures, taking into account the time required for the assessment, including any potential suspension periods.
Concluding remarks and potential market impact
Preliminary qualification appears destined to play a central role not only in determining eligibility in participation in the competitive procedures contemplated by the Decree regulating the FER-X Definitive Scheme but, more broadly, in the assessment and valuation of renewable energy projects.
Indeed, as noted above, obtaining preliminary qualification requires the GSE to have already verified a significant portion of the requirements relevant to access to the incentive mechanism.
From this perspective, preliminary qualification could progressively become an additional and non-negligible de-risking factor for a project, complementing – without replacing – the traditional factors considered when assessing a project.
This could, at least for projects eligible to participate in Definitive FER-X procedures, lead to a progressive segmentation of the market between projects that are merely ready-to-build and projects that, in addition to having reached that level of maturity, have already obtained preliminary qualification and are therefore able to access – subject to the applicable requirements and conditions – the subsequent stages of the competitive procedure.
Against this backdrop, preliminary qualification could also affect the valuation of assetsin M&A transactions. Obtaining qualification does not, of course, amount to the award of the incentive and does not eliminate the risk associated with the outcome of the competitive procedure. It does, however, bring forward the verification of a number of elements which, under the previous framework, would only have become relevant at a later stage, thereby reducing, at least in part, the uncertainty surrounding the project’s eligibility to participate in the incentive mechanism.
Greater certainty, however, comes with a corresponding degree of rigidity. The “crystallisation” of the information declared at the qualification stage may make the subsequent management and transfer of the project more complex. Changes to the plant’s capacity, location, priority criteria or other relevant elements may require the existing qualification to be cancelled and a new application to be submitted, with potentially significant consequences where the transaction takes place shortly before a competitive procedure.
In summary, preliminary qualification could evolve into something more than a procedural step in the process of accessing renewable energy incentives. More specifically, it could become a genuine new milestone in the development of renewable energy projects, affecting the point at which industry participants decide to bring a project to market and, potentially, its value.
It will therefore be interesting to observe, starting with the first competitive procedures, whether market participants will regard preliminary qualification merely as a new condition for access to the Definitive FER-X Scheme whether it will ultimately become, more broadly, a new threshold of maturity for renewable energy projects.
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> ^ See Ministry of the Environment and Energy Security Decree No. 194 of 18 June 2026, entitled “Support mechanism on a permanent basis for renewable energy plants with generation costs close to market competitiveness pursuant to Articles 6 and 7 of Legislative Decree No.199 of 8 November 2021”; MASE Directorate Decree No. 82 of 7 August 2026, approving, inter alia, the Operating Rules providing general guidance for the implementation of the Decree of 18 June 2026 and governing the procedures and timing for submitting and obtaining the preliminary qualification required for participation in competitive procedures.
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> ^ See page 17 of the Operating Rules (“A.3.2. Objective Requirements – A.3.2.1. General Objective Requirements”).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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