Renewable Energy In Italy; What You Should Know

April 19, 2021
renewable energy in Italy|Wind turbine in Italy|solar energy|solar panels by Eni

In Europe, some countries stand out for renewable energy conversation, and Italy is one of the top players. For 2018 and 2020, respectively, Italy beat its renewable energy targets. The total energy produced by hydroelectric, solar, wind, bioenergy and geothermal power in Italy for 2018 reached 17.8% of final gross consumption, going past the 17% target set for 2020.There was a 7.7% of consumption in the transport sector for individual sectors, 33.9% in electricity production and 19.2% in heat consumption from renewable energy sources within Italy in 2018. Overall, with that amount of electricity consumption, Italy greatly exceeded the National Action Plan's target on renewable energy sources, also known as the PAN, for the years 2018 (24.6%) and 2020 (26.4%).Italy is ranked among the top ten in Europe as part of the list of countries leading electricity production from renewable energy sources. The national impact on the European Union's total is about 10.7%. The ambitious target for 2030 set by Italy's National Energy and Climate Plan accounts for 30% consumption with renewable energy sources. So this makes it necessary for Italy to promote and install its renewable energy plans in the future.

Italy’s Renewable Energy Journey, How Far They’ve Come.

The fastest-growing source of renewable energy in Italy is photovoltaic solar energy (PV). Data from 2018, the last full year of available data, shows that photovoltaic systems and installations produced over 22 TWh of energy. Material from the IEA's papers on the Global PV Markets also details the impact PV has on the Italian energy sector; accordingly, photovoltaic energy produced by Italy in 2020 was 7.5% of total electricity generation.

solar energy

With its $6million renewable energy incentives program and a 20.8GW total PV installed capacity as of 2019, more power plants are encouraged to enrol for the specifically packaged incentives. Italy's strategy for 2021 – 2030 is spelt out in its Integrated National Plan for Energy and Climate (PNIEC). It addresses decarbonisation, energy efficiency, self-consumption and distributed generation, energy security and consumption electrification. This strategy aims to bring the part of renewable energy of the final gross consumption rate to 30% by 2030.

Policies Promoting The Growth Of Renewable Energy In Italy

After beating its own 17% set target for renewables shares six years ahead of schedule, Italy has set about creating policies and guidelines to streamline the renewable energy sector for maximum profit all around. It is working under the EU Energy Roadmap 2050 of decreasing greenhouse gas emissions by at least 80 per cent from 1990 levels using its National Energy Strategy 10-year road map.The National Energy Strategy seeks to increase competitiveness, sustainability and security in the Italian national energy sector through schemes and incentives specifically tailored to the Italian market. The schemes or policies responsible for renewable energy – electricity in Italy are controlled by Gestore dei Servizi Energetic (GSE – the Manager of Electricity Services). Some of the policies are:

  • Electricity generated from renewable energy sources is promoted through VAT- and real estate tax deductions.
  • Electricity generated from renewable energy sources fed into the grid can be sold on the free market or to the GSE on a guaranteed minimum price colloquially termed "ritiro dedicato."
  • Net-metering, also known as "scambio sul posto", provides a convenient compensation to prosumers for the electricity fed into the grid.
  • Priority access must be given to renewable energy plants by grid operators.
  • Priority dispatch of electricity from renewable sources is also an obligation.
  • Grid operators can expand the grid if necessary and requested by plant operators.

As for renewable energy in the heating sector, there are a few policies available as well:

  • District heating and cooling networks are managed at local levels
  • Development of the installations needed for renewable energy sources in heating (RES-H) is supported by price-based mechanisms
  • There is a tax regulation mechanism in place to promote using renewable energy sources for heating

Other general policies that concern renewable energy sources in Italy include:

  • Certificates of installed energy plants are obligatory
  • All new or refurbished buildings must integrate RES, with an extra 10% to the obligation level for public buildings

Ongoing Renewable Energy Projects In Italy.

There are many completed renewable energy projects within Italy, while others are still in the planning stages. However, available data for 2020 is all but non-existent because of the COVID-19 pandemic, but with 2021 giving us a new lease on life, some projects should soon begin to see daylight, such as that of Eni.One of Europe's largest oil company that has decided to diversify into renewables has received authorisation for a few renewable energy projects in Italy. The State Hydrocarbons Authority, also known as Ente Nazionale Idrocarburi or ENI for short, is building a 4.5 MW photovoltaic plant in Trecate to power their production site.

solar panels by Eni

A subsidiary of ENI, called ENI New Energy, acquired three wind projects with a total capacity of 35 MW in the Puglia region of Italy. These will be the first wind projects undertaken by ENI in Italy, and it's expected to produce approximately 81 GWh annually, avoiding around 33,400 tonnes of CO2 emissions per year. Construction is to begin in the third quarter of 2021.

Experts’ Projections

When it comes to electricity generation, the National Plan for Energy and Climate (PNIEC) expects power generated by renewables to increase by 65% by 2030 compared to its current total.Renewables are also scheduled to cover more than 55% of national electricity consumption, estimated at 337 TWh in 2030.The plan is to concentrate on two renewables, wind energy and photovoltaic energy, with both renewables reaching more than twice the amount of installed power in 2030 than what is currently attainable. This means the increase in total installed power from renewables would go up to 75%.


Italy is not taking any pauses in its race to become the only contender for renewable energy innovations in Europe. It has beat its set targets twice in a row and continues to set higher standards for its sustainability. Hive Power is optimistic about the tremendous progress that can be made in Italy’s renewable energy journey with the inclusion of AI-powered smart grid technologies to promote more innovative solutions.

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