Italian energy agency Gestore dei servizi energetici (GSE) has launched the second solar energy auction under Italy's new incentive scheme for renewable energy, the “transitional” FER X program.

The procurement exercise is expected to allocate a minimum of 200 MW of PV capacity and a maximum of 1.6 GW.

Commercial and industrial PV projects, as well as large-scale PV facilities, can participate in the auction, which is expected to be held between Oct. 17 and Nov. 16.

For PV projects not exceeding 1 MW in size, the Italian government excluded the use of solar modules, cells, and inverters from China.

The first auction of the transitional FER X program attracted 1,387 project proposals with a combined capacity of 17,537 MW, according to GSE. Prequalified project developers have until Sept. 12 to submit final offers.

In the latest tender under the earlier version of the FER X scheme, which is Italy’s 16th such auction, the GSE awarded 278.5 MW of solar capacity across 53 sites and approved two wind projects totaling 88.4 MW.

Developers submitted maximum discounts ranging from 2.01% to 7.91% off the auction ceiling price of €0.078175 ($0.084949)/kWh. The lowest accepted bid was €0.07199/kWh for a 2.7 MW solar plant in the province of Ancona, central Italy.