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Italy's recent energy decree, aimed at addressing high energy prices, introduces uncertainty for the renewable sector. The government plans to compensate gas-fired power plants for emissions costs, which may affect electricity pricing and the profitability of renewables and battery storage.

Regulatory changes and geopolitical factors are challenging project developments that typically take several years. The transitional Fer-X auctions held last year resulted in lower-than-expected reference prices, complicating power purchase agreements (PPAs). The market remains volatile, reflecting a need for stable regulatory frameworks as developers await clearer pricing trends.