Nevertheless, Italy aims to install 12,680 MW of wind power capacity by 2020. Italy passed a new incentive system for onshore and off shore wind farms consisting of a FiT for plants up to 1 MW, a feed-in-premium for onshore wind up to 5 MW (capped at 60 MW annually) and a reverse auction system for anything over 5 MW (capped at 500 MW onshore wind annually). The country has an over all aggregate annual spending cap of 5.8 billion euro for the RE sector, after which the allocation stops.Typically, wind projects need planning and construction approval; but in
Italy an added bond of 10% of the project value must be maintained until the wind farm is commissioned to qualify the project for the reverse auction system (for projects that produce 500–650 MW onshore wind).