Hydroelectric Concession, Benefits And Uses Of Water In Italy

A concession is a partnership in which a public administration grants a single entity (public or private) or a restricted number of entities the authority to perform an activity generally reserved for public authorities. The public administration retains ownership of the commodities given for use and exercise. They are explored in areas that influence the quality of life. The concession allows for the construction new infrastructure without increasing the national debt. Thus, the hydroelectric concession is explicitly meant for all those who want to derive and direct public water for any use to generate electricity. It requires all hydroelectric generators to get the requisite administrative concession for using a public resource, such as water, and to pay the state charge equal to the allowed usage annually. In Italy, hydroelectric concessions are permits issued by the government to private enterprises or individuals to use water resources to generate hydroelectric electricity.

 

Concessions often contain a certain amount of time during which the corporation or individual has the right to utilise the water resources, subject to different rules and restrictions.

Hydroelectric power is an essential renewable energy source in Italy, accounting for around 15% of total electricity generation. The bulk of hydroelectric power facilities in Italy is located in the north, mainly in the Alps and Apennines, where water resources are plentiful. In Italy, the Ministry of Economic Development regulates the awarding of hydroelectric concessions and administers and regulates their usage for energy generation. A public tender is used in the concession process, in which interested parties make offers to use a particular water resource.

 

The bids are reviewed using a variety of factors, including the project's environmental effect, technical feasibility, and economic viability. Once a concession is awarded, the concessionaire is expected to follow some rules and regulations, including those pertaining to environmental preservation, water management, and safety. The concessionaire must additionally pay the government a charge for the usage of the water resources. In Italy, the life of a hydroelectric concession varies based on the project and the parameters of the concession agreement. Concessions can span several decades, often up to 30 or 40 years, after which they can be renewed, or the concessionaire must cede the concession and related infrastructure to the government. 

 

 

In Italy, the use of water resources for hydroelectric purposes is regulated by the Hydroelectric Concessions Code (Codice delle Concessioni Idroelettriche), which was last updated in 2019. This code sets out the rules and procedures for granting and managing hydroelectric concessions and the conditions for using water resources.

 

The code establishes that hydroelectric concessions are granted for a maximum period of 50 years and that the holder of the concession must comply with all applicable laws and regulations related to the protection of the environment and the sustainable use of water resources. The code also regulates the use of water resources for hydroelectric purposes, establishing that the concession holder must use water rationally and sustainably and ensure that the water flow downstream of the hydroelectric plant is not significantly altered. The code also establishes minimum flow rates that must be maintained in the river or watercourse to protect the environment and ensure the survival of aquatic fauna and flora.

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It also establishes that the concession holder must pay a fee for the use of water resources, which is calculated based on the amount of water used and the installed power of the hydroelectric plant. This fee is used to compensate the state for the use of public resources and to finance environmental protection and restoration projects.

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In conclusion, the Hydroelectric Concessions Code aims to ensure that water resources are used for hydroelectric purposes in a sustainable and environmentally responsible manner while promoting the development of renewable energy sources in Italy.

 

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REFERENCES

1. Sandulli, Maria Alessandra. "The Italian System of Hydroelectric Concessions." Rivista Italiana Di Antitrust / Italian Antitrust Review, vol. 2, no. 2, Oct. 2015, https://doi.org/10.12870/iar-11573.

2. "The hydroelectric concession in Italy." Frosionext.com, February 2023, https://www.frosionext.com/en/the-hydroelectric-concession-in-italy/

3. EPA, Environmental Protection Agency, 29 June 2021, https://www.epa.gov/newsreleases/us-navy-enters-agreement-us-epa-upgrade-pearl-harbor-hickam-wastewater-treatment-plant.

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