Italy: electricity from biogas and biomass — from the tariffa omnicomprensiva to FER 2 and minimum guaranteed prices

The Italian support system for electricity from biogas has gone through four stages: the generous all-inclusive tariff of 2008, the gap after the 2016 decree expired, the new FER 2 decree of 2024, and minimum guaranteed prices (PMG) for older plants. For biogas up to 300 kW, FER 2 pays 233 EUR/MWh for 20 years. At the same time, older biogas plants whose support is ending benefit from minimum guaranteed prices (PMG) that cover operating costs, while new installations are steered rather towards biomethane, which we describe in separate articles.

Stage 1: the tariffa omnicomprensiva (from 2008)

The tariffa omnicomprensiva (all-inclusive tariff) arose from Law 244/2007 and the decree of 18 December 2008. For plants of up to 1 MW commissioned after 31 December 2007, it provided a fixed rate combining the energy price and an incentive element: 0.28 EUR/kWh, that is 280 EUR/MWh, for biogas, biomass and vegetable oils, as an alternative to green certificates. The decree of 6 July 2012 rebuilt the system and sharply limited support, directing it primarily at waste and by-products.

Stage 2: the gap after 2016

According to Consorzio Italiano Biogas (CIB), the decree of 23 June 2016 ceased to have effect on 31 December 2016, and the next decree, FER 2, had been expected since that date. The FER 2 decree of 19 June 2024 remains in force until 31 December 2028, provides for at least one call per year and a 150 MW quota shared by biogas and biomass.

Stage 3: FER 2

For biogas, capacity is limited to 300 kW, and the all-inclusive tariff is 233 EUR/MWh for 20 years. According to IEA Bioenergy, biomass up to 300 kW receives 246 EUR/MWh in 2024/2025; base tariffs are reduced by 3% a year, and small plants (up to 300 kW) feel this only from 2026. The requirements include a digestate storage tank with biogas recovery sized for at least 30 days of production, heat recovery, at least 80% of the feedstock from by-products listed in Table 1 part A, and at least 51% of the feedstock from the plant's own farm. Commissioning must take place within 31 months of the publication of the ranking list.

The calls have small quotas compared with 150 MW:

CIB reported in February 2026 that the first two calls approved 62 projects, including 52 biogas ones, with a capacity of about 12 MW (the quotas of the two calls were 10 and 9 MW, and the entire FER 2 quota is 150 MW). Only 10 plants offered a tariff reduction, and three of the biogas projects offered a reduction of 2–3%. CIB points out that the result justifies a revision of the tariffs so that they reflect the current cost structure.

Stage 4: PMG for older biogas plants

Decree-Law 57/2023 introduced minimum guaranteed prices for biogas and biomass plants whose support ends by 31 December 2027. PMG cover operating costs, not investment costs. ARERA implemented them through resolution 132/2024, updated by resolution 305/2024 of 23 July 2024; according to CIB, the formula depends, among other things, on maize and diesel prices. Decree-Law 21/2026 set, from 1 April 2026, limits on hours and spending for 2026–2030 (for biogas also EUR 50.1 million a year in 2031–2037). See the article on Decree-Law 21/2026 and the one on resolution 132/2024.

What to make of this when comparing

In Italy there is no single rate for the whole industry. New small biogas plants compete for the 233 EUR/MWh tariff in calls, older ones have cost-based PMG, and some are converting to biomethane. For the latter path, see the biomethane decree 340/2022 and the approval of the PNRR. For a comparison with Poland: 2023 RES reference prices.