Lombardy provisionally awards Edison the Codera Ratti-Dongo hydro concession: over €150m of investment in 30 years

The Lombardy Region announced on 4 November the provisional award of the Codera Ratti-Dongo hydroelectric concession to Edison, the incumbent concession holder. According to the region, quoted by ANSA, it is the first tender in Italy's hydroelectric sector to reach the provisional award stage. Five operators took part and Edison's bid was ranked first.

The figures. The concession covers two plants: Codera-Ratti, rated at 14.3 MW, whose concession expired in 2010, and Dongo, rated at 5.4 MW, which expired in 2019. Together they generate about 150 million kWh a year, equivalent to the consumption of around 50,000 families. The winning bid provides for more than €150 million of investment over 30 years, of which €97 million above the €57 million minimum required by the tender, for upgrading the plants and for environmental and local compensation. Annual output is set to rise by more than 10%, and the annual fees paid to the local area to increase from €1.5 million to €3.1 million.

Power for local businesses. Under the hydro release mechanism, 15% of the energy produced will be ceded to GSE (Gestore dei Servizi Energetici) at a capped price of €67/MWh to support local businesses, ANSA reports.

Context. Massimo Sertori, the regional councillor for energy resources, stressed the bureaucratic complexity and length of the selection procedures, as well as the many lawsuits brought by operators, and argued for the so-called fourth way, which combines ordinary tenders with direct negotiation with the incumbent concession holder. “The increase in fees and compensation serves to cover the higher costs of services in the mountains,” Sertori said, as quoted by Prima la Valtellina. The same outlet notes that another Lombardy tender, for the 4.06 MW Resio plant, has been suspended because of a lawsuit.

What comes next. The award is provisional for now. The Codera-Ratti plant lies in Valchiavenna, in the municipalities of Novate Mezzola and Verceia in the province of Sondrio, and the concession also includes territory in the province of Como.

The country's real-time data are on the country page