From National Price (PUN) to Zonal Price – regulatory change in Italy and how it affects PPAs

On 18 April 2024, the Italian Ministry of the Environment and Energy Security published a Ministerial Decree implementing the provisions of Article 13 of Legislative Decree no. 210 of 8 November 2021, as amended by Article 19 of Decree-Law no. 181 of 9 December 2023, converted with amendments by Law no. 11.

The decree establishes that, as of 1 January 2025, electricity purchase offers on the Day-Ahead Market managed by the GME (Gestore Mercati Energetici) will be valued at zonal prices. In continuity with the PUN, the GME will calculate the reference price of the electricity traded on the Day-Ahead Market as the average of the zonal prices weighted by the quantities purchased in relation to zonal portfolios being taken in each geographical market zone.

The reference price calculated by the GME will keep the denomination of PUN Index GME and will constitute the reference index to be used for the quotation of long-term PPA.

For further details on the impact of this regulatory change on your PPA portfolio, please refer to our newsletter from 26 March 2024.