EU approves Italy €23bn renewables scheme

In brief

The European Commission has approved a €23 billion Italian state aid scheme to support renewable electricity generation. The programme will back new installations using technologies including onshore wind, solar, hydropower and sewage gas, with the aim of adding more than 37 GW of renewable capacity and helping Italy meet its 2030 clean-energy targets. The measure was approved under the EU’s Clean Industrial Deal State Aid Framework and is intended to accelerate decarbonisation while reducing dependence on imported fossil fuels.

Support will mainly be provided through 20-year two-way contracts for difference, giving developers revenue certainty while requiring them to return excess revenues if market prices rise above the agreed strike price. Most projects will be selected through competitive bidding, while smaller solar and wind installations below 1 MW can receive support directly. The Commission said the scheme is necessary and proportionate, and that actual net public support could be lower than the headline budget if electricity market prices are higher than expected.

Source: reNEWS / European Commission

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