The rising number of renewable energy systems installed has as consequence the downfall of the bulk price of energy, while reducing the commercial value of traditional fossil power plants. In fact, in some cases earnings take such a downturn that the closure of some of these plants is now more than an option.
Often misinterpreted as synonyms, the concepts of Grid and Market Parity must be kept separate. With Market Parity, we usually refer to the competitiveness of the renewable energy price compared to conventional energy on the electricity wholesale market. Grid Parity instead outlines the condition in which the self-production of energy is cost-effective compared to retrieving electricity from the grid. Grid Parity has been already achieved on the italian market.