Axiom Discusses Italian Solar Market

Axiom Capital Management is out with an updated research note on the Italian solar market.

In a note to clients, Axiom writes, "GIFI's companies are astonished by the current measure provided by the Decree on Renewable approved yesterday by the Council of Ministers. The main critical aspects of the Decree are: • the current, third, Conto Energia will be valid only for those PV systems connected to the grid by the 31st of May 2011; • the adoption of the 4th Conto Energia by April the 30th and an annual cap on PV capacity."

Axiom goes on to say, "As it has been approved by the Council of Ministers – declares the President of GIFI, Mr Valerio Natalizia – the Decree on Renewable causes negative effects to the sector: 10.000 direct employees are made redundant, the halt of something like 40 billions € of investments, the halt of hiring and the loss of qualified job places especially in the R&D.”

“Amongst further negative aspects related to the Decree – continues the President of GIFI – I would like to highlight that already orders worth 8 billions € are now blocked as the related contract are. Companies, however, are obliged to pay the supplier but without any financial support from banks which in turn have promptly revoked any financing agreement. Finally, national and international investors are now in standby and they are waiting for the adoption of the 4th Conto Energia.”