Italy: Council of State Overturns PAS Denial for Neoen Solar Project – c-quater Ruling Clarified

by Chief Editor

Italian Council of State Ruling Clears Path for Solar Expansion

A recent ruling by the Italian Council of State has significantly clarified the criteria for approving new solar energy projects, potentially unlocking a wave of investment and accelerating the country’s transition to renewable energy. The decision, numbered 1099/2026, overturned a previous denial of a Preliminary Authorization (PAS) for a Neoen project, resolving a dispute over land suitability requirements.

The Core of the Ruling: Expanding ‘Suitable Areas’

The Council of State’s ruling centers around the interpretation of Article 20, paragraph 8, of Legislative Decree 199/2021, which outlines the criteria for identifying suitable areas for solar installations. Specifically, the dispute revolved around the interplay between clauses c-quater and c-ter. According to Andrea Sticchi Damiani, the lawyer representing Neoen at Studio Legale Andrea Sticchi Damiani, the court determined that clause c-quater defines a distinct and autonomous category of suitable land, separate from the requirements of clause c-ter.

Previously, authorities had interpreted the rules as requiring projects to cumulatively meet the criteria of both c-quater and c-ter, which relates to proximity requirements. The Council of State’s decision rejects this interpretation, stating that c-quater expands the range of eligible areas without necessitating adherence to the proximity stipulations of c-ter. This is a crucial distinction, as it opens up land previously considered unsuitable for solar development.

Implications for Agrivoltaics and Renewable Energy Targets

This ruling is particularly significant for the development of agrivoltaic systems – projects that combine agricultural land use with solar energy generation. The clarification provided by the Council of State offers greater certainty for developers and investors in this rapidly growing sector. The decision aligns with the Italian government’s stated commitment to increasing renewable energy capacity and reducing reliance on fossil fuels.

As Sticchi Damiani explained to pv magazine Italia, the ruling offers a “clearer interpretive framework” for land suitability criteria, which remain relevant due to the transitional rule introduced by Law Decree 175/2025. This clarity is expected to streamline the permitting process and reduce bureaucratic hurdles for new projects.

Administrative Discretion and the Balancing of Interests

Beyond the specifics of land suitability, the Council of State similarly reaffirmed the importance of administrative discretion in the permitting process. The ruling emphasizes that authorities have the power to balance competing interests and potentially override strict legal definitions of “suitable” or “unsuitable” areas. This highlights the need for a case-by-case assessment that considers the broader benefits of renewable energy projects.

FAQ

Q: What is a PAS?
A: PAS stands for Preliminary Authorization, a key permit required before developing a solar energy project in Italy.

Q: What is the difference between clauses c-quater and c-ter?
A: Clause c-ter relates to the proximity of a project to certain infrastructure, while c-quater defines a broader set of criteria for land suitability.

Q: How does this ruling affect agrivoltaic projects?
A: The ruling makes it easier to obtain permits for agrivoltaic projects by expanding the definition of suitable land.

Q: What is the role of administrative discretion in this process?
A: Authorities can consider the overall benefits of a project and potentially approve projects even if they don’t perfectly meet all legal requirements.

Did you know? The Council of State also issued a separate ruling (n. 9891/2025) in December 2025, affirming that preliminary contracts are sufficient evidence of a project’s viability for PAS approval.

Pro Tip: Developers should consult with legal experts familiar with Italian renewable energy law to ensure their projects comply with the latest regulations and interpretations.

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