The issue raised by the Italian Solid Biomass Energy Association (EBS) concerns the proposed reduction in Minimum Guaranteed Prices (PMG) included in the draft Energy Bills Decree, a measure that would directly affect the economic sustainability of solid biomass plants.
According to EBS, the reduction in incentives — introduced without adequate technical consultation and only a short time after the support mechanism launched in 2024 — risks undermining a strategic sector that provides continuous and dispatchable renewable electricity generation for more than 8,000 hours per year. This contribution is essential to the stability of Italy’s national electricity system, particularly as intermittent sources such as solar and wind account for an increasing share of power generation.
The reduction in PMG would also place an entirely domestic supply chain at risk, with potential consequences for approximately 5,000 jobs, the active management of forest resources and the energy recovery of agricultural and industrial residues, while generating no significant economic benefits for end users.
Against this background, the decree is considered potentially detrimental to energy security, regulatory stability and investor confidence in the renewable energy sector.