Glossary. Terms defined from the sources.

Under Legislative Decree 210/2021 it is a final customer, or a group of final customers in the same building or condominium, who on their own premises generates electricity for own use, stores or sells self-generated electricity, or takes part in flexibility or efficiency schemes, as long as this is not their main business.

PPA structure in which the buyer pays for a fixed volume of electricity over a set period; the difference between agreed volume and actual output is borne by the producer (DG ENER study, 2026). On GME's forward market (MTE) the baseload product is electricity delivered in all relevant periods of the delivery period.

Acronym used by MASE Ministerial Decree no. 414 of 7 December 2023 (CACER Decree) for the configurations within which renewable energy is shared and its incentives are accessed. Three configuration types can access the decree's incentive tariff: remote self-consumer, group of self-consumers and CER.

A corporate PPA is concluded between a corporate buyer and a producer; a utility PPA between an energy supplier (utility) and a producer (study for the European Commission, DG ENER, 2026).

Electricity market whose results and prices are published by GME. Since 1 October 2025 it has had 15-minute granularity; in 2025 hourly prices ranged from EUR 0 to 289/MWh. The full FER X scheme calculates its contract for difference on the hourly zonal MGP price.

Simplified route, in place since 1 January 2008, by which a producer sells the electricity fed into the grid to the GSE instead of on the open market, receiving a price for each kWh fed in. The price is the hourly zonal price; some plants may opt for a guaranteed minimum price (photovoltaics, 2026: EUR 47.5/MWh up to 1,500,000 kWh a year).

Connection between the plant and the remote self-consumer's installation no longer than 10 km, measured as the minimum distance between cadastral parcels, to which no other users may be connected. The configuration allows a single consumption unit and a single plant; general system charges apply as for remote self-consumption through the grid and are paid to CSEA.

System in which a renewable or high-efficiency cogeneration plant, possibly owned by someone other than the customer, is connected through a private line, with no third-party access obligation, to the installation of a single final customer, inside an area owned by or fully available to the customer (Legislative Decree 115/2008, art. 2). It is a sub-category of simple production and consumption systems.

Mechanism through which the GSE allocates electricity volumes at its disposal. The first Energy Release (MiTE Ministerial Decree no. 341 of 16 September 2022) runs in the dedicated section of the PPA Bulletin Board; under Energy Release 2.0 (Decree-Law 181/2023, art. 1) the GSE advances renewable electricity to energy-intensive companies for 36 months through two-way contracts for difference, and the companies return it over 20 years by building new renewable capacity.

In the GSE operating rules (version of 16 July 2025) it is the requirement that allows a producer with a plant in the configuration to act as referent: for a CER it applies to a third-party producer that is not a member; for groups of self-consumers and remote self-consumers it is the alternative to the members, the building administrator or legal representative, and the self-consumer itself.

Support scheme for renewable plants with generation costs close to market competitiveness. The full FER X scheme is MASE Ministerial Decree no. 194 of 18 June 2026, in force since 7 August 2026: a maximum quota of 37.15 GW and, for plants of 200 kW and above, a 20-year two-way contract for difference on the hourly zonal day-ahead price.

For ARERA it means ownership or rights such as surface rights, usufruct, loan for use or lease; an easement is not a sufficient title (TISSPC definitions, also referred to by the TIAD).

A greenfield PPA involves a plant not yet built; a brownfield PPA involves an existing plant (study for the European Commission, DG ENER, 2026).

Group of at least two renewable self-consumers acting collectively and located in the same building or condominium. Energy is shared through the distribution grid, including via storage, serves members' needs first, and any surplus may be stored and sold, including through PPAs.

Role of the GSE, provided for by art. 28 of Legislative Decree 199/2021, as guarantor against counterparty default in long-term contracts traded on the GME platform. For PPA Market contracts, Ministerial Decree 152/2025 provides that the GSE takes over the defaulting party's position within the available resources; Decree-Law 21/2026 allows the guarantee to be requested also for contracts signed outside the PPA Bulletin Board and registered on it.

Electronic document whose sole function is to prove to a final customer that a share or quantity of energy was produced from renewable sources (Directive (EU) 2018/2001, art. 2). In Italy GOs are issued by the GSE, are worth 1 MWh each and are traded on GME's M-GO market or bilaterally.

Annex A to ARERA resolution 727/2022/R/eel, as supplemented and amended by resolution 15/2024/R/eel. It regulates seven distributed self-consumption configurations: group of self-consumers, group of active customers, CER, citizen energy community, remote self-consumer with a direct line, remote self-consumer using the grid, remote active customer using the grid.

Portion of the relevant grid identified by Terna in the Grid Code (Annex A.24, Rev. 05, in force since 1 January 2021). The zones are North, Centre-North, Centre-South, South, Calabria, Sicily and Sardinia. A CER's energy may be shared within the same market zone; incentives require the same primary substation.

PPA in which several buyers jointly purchase energy from one or more renewable plants (study for the European Commission, DG ENER, 2026).

GSE service that financially offset electricity fed into the grid in one hour against electricity withdrawn in a different hour, as an alternative to selling the energy fed in. It has been abolished: plants that entered operation after 29 May 2025 can no longer join, and agreements are not renewed beyond 15 years from first access.

Physical PPA in which the renewable plant is connected directly to the consumption site, behind the meter (study for the European Commission, DG ENER, 2026). Under Italian law, a plant directly connected to the final customer's installation is the case of on-site individual self-consumption.

Contract that sets a strike price: if the market price falls below it, the producer receives the difference from the counterparty, while nothing is paid back when the price is higher (study for the European Commission, DG ENER, 2026).

PPA structure in which the buyer pays only for the electricity actually generated by the plant, as measured by the plant's meter; shape risk and much of the volume risk fall on the buyer (study for the European Commission, DG ENER, 2026).

Long-term contract under which an off-taker agrees to purchase electricity directly from a producer, with delivery of the electricity to the off-taker (study for the European Commission, DG ENER, 2026). In GME's glossary the «PPA contract» under art. 28 of Legislative Decree 199/2021 is settled through physical delivery.

Capital grant of up to 40% of eligible costs for CERs and groups of self-consumers with plants in municipalities under 50,000 inhabitants; remote self-consumers are excluded. Applications closed on 30 November 2025; since 2026 the programme (Facility CACER) has been managed by the GSE under art. 27 of Decree-Law 19/2026.

In Directive (EU) 2018/2001 a renewables PPA is a contract under which a natural or legal person agrees to purchase renewable electricity directly from a producer. Regulation (EU) 2019/943, as amended by Regulation (EU) 2024/1747, defines a PPA more broadly as the purchase of electricity from a producer on a market basis.

GME electronic bulletin board provided for by art. 28 of Legislative Decree 199/2021, operational since 26 April 2022, to bring together parties interested in long-term renewable electricity contracts. It has three sections: anonymous, non-binding announcements, mandatory registration of concluded PPAs by sellers, and Energy Release.

Organised market platform with voluntary participation for long-term trading of renewable energy, provided for by art. 28 of Legislative Decree 199/2021. MASE-MEF Ministerial Decree no. 152 of 20 June 2025 gave GME guidelines to develop it: standardised 5- to 10-year contracts, GME as central counterparty, GSE as guarantor of last resort.

Incentive tariff of MASE Ministerial Decree 414/2023 paid on the share of energy shared through the distribution grid under the same primary substation. It has a fixed part depending on plant capacity and a variable part equal to max(0; 180 - Pz), where Pz is the hourly zonal price, subject to a cap; it is due for 20 years from the plant's commercial operation date.

Electrical station supplied at high or extra-high voltage with at least one HV/MV or EHV/MV transformer serving the distribution grid. The areas it serves are conventional, defined by distribution operators and published by the GSE, and refer to the POD's supply address. Plants and consumers connected under the same primary substation are the requirement for incentives and tariff refunds.

Factor that reduces the premium tariff when the plant receives capital grants, allowed up to 40%: it varies linearly from 0 (no grant) to 0.50 (40% grant). It does not apply to shared energy from withdrawal points held by territorial bodies, religious bodies, third-sector and environmental bodies, and natural persons.

Natural or legal person in charge of the technical and administrative management of the application for the distributed self-consumption service; it is the data controller and the GSE's contractual counterparty. In a CER the referent is the community itself, which may give another party a mandate without representation lasting one year, tacitly renewable and revocable at any time.

Self-consumer who produces with renewable plants located in buildings or sites other than where they operate, provided they are at their disposal, connected through a direct line or the existing distribution grid. In the grid-based configuration there is a single final customer; plants and consumption units are in the same market zone and producers may be third parties acting on the customer's instructions.

Community governed by art. 31 of Legislative Decree 199/2021 whose main purpose is to provide environmental, economic or social benefits to its shareholders or members or to the local areas where it operates, not to make financial profits. Participation is open and voluntary and, for shared-energy purposes, only the output of plants available to and under the control of the community counts.

Third party that, since 24 January 2026, active customers may appoint for renewable energy sharing; it may own or operate generation or storage up to 6 MW without becoming an active customer (Legislative Decree 210/2021, art. 14). ARERA's implementing rules are in progress.

Under Legislative Decree 199/2021 it is a final customer who produces renewable electricity for their own consumption and may store or sell the self-generated electricity, under the conditions of art. 30. In on-site individual self-consumption the plant is directly connected to the customer's installation and may be owned or operated by a third party subject to the self-consumer's instructions.

In the TIAD it is, for each hour, the part of shared energy relating only to connection points located in the portion of the grid served by the same primary substation. It is the basis of the valorisation contribution.

Under the ARERA rules in force (TIAD) it is, in each hour, the lower of the energy fed in and the energy withdrawn for sharing purposes by all of the configuration's connection points located in the same market zone. Since 24 January 2026 the law (Legislative Decree 199/2021, art. 2) defines it over each settlement period of up to one hour; ARERA is aligning its rules through resolution 223/2026/R/eel.

System in which an electric line links production units and consumption units: on the consumption side a single individual customer or units of the same legal person or corporate group; since 30 April 2025 production units may also be run by different legal persons. ARERA regulates it in the TISSPC; since 26 December 2021 any configuration meeting the definition can be built, no longer only the SAP, SEU, ASE and SEESEU sub-categories.

Physical PPA facilitated by an intermediary, such as a supplier, trader or aggregator, which manages profile and volume between generation and consumption (study for the European Commission, DG ENER, 2026).

Contract between a plant operator and a counterpart, usually public, that guarantees minimum remuneration and caps excess remuneration (Regulation (EU) 2019/943, art. 2). If the market price is below the agreed price the counterpart pays the difference; if it is above, the producer pays it back.

Contribution for the valorisation of self-consumed energy set by ARERA in the TIAD and paid by the GSE; Ministerial Decree 414/2023 calls it the valorisation fee. For CERs and remote self-consumers it is self-consumed energy multiplied by the variable part of the low-voltage transmission tariff (TRAS_E: EUR 11.90/MWh in 2026); for groups of self-consumers it also includes the highest BTAU distribution component and avoided grid losses.

Financial agreement between producer and buyer, also called synthetic, that does not involve physical delivery of the traded electricity (study for the European Commission, DG ENER, 2026).

Electricity price for a market zone. In 2025 average day-ahead zonal prices ranged from EUR 112.16/MWh (Sardinia) to EUR 116.79/MWh (Centre-North) (GME, January 2026 newsletter). The hourly zonal price enters the variable part of the premium tariff and is the dedicated withdrawal price.