Italy to discuss new solar incentives July 8

MILAN (Reuters) - Italy is poised to unveil a long-awaited new incentive plan for Europe's third-biggest solar power market on July 8, a document published on Tuesday showed.

Several delays in the plan's presentation, expected since the start of 2010, have unnerved investors concerned about strategy in Italy and added volatility to shares in Italian solar firms such as TerniEnergia and ErgyCap.

Italy's state body on relations between state government and regions will discuss the government's proposals for its new solar power incentive scheme on Thursday. Guidelines for authorization and running renewable power plants will also be discussed, according to the agenda of an upcoming meeting, published on the body's web site.

Meetings of the so-called Unified Conference of State and Regions, whose approval is vital for the plan, have been canceled or postponed several times this year and it is the first time the solar incentives have been put on the body's agenda.

Solar energy has boomed in Italy since the launch in 2007 of the current support scheme, which expires this year. With a total installed photovoltaic capacity of above 1,300 megawatts, Italy is Europe's No. 3 solar power producer after Germany and Spain.

Industry Ministry undersecretary Stefano Saglia who drafted the proposals, said last month the government planned to cut incentives for solar power producers by an average of 18 percent in 2011, which would be below market expectations of an up to 25 percent cut.

The government has drafted the new incentive scheme for the sector to bring support in line with falling costs of photovoltaic systems which turn sunlight into power.

(Reporting by Svetlana Kovalyova; Editing by Alison Birrane)