Italy Gets EU Approval for $26,5 Billion Renewable Electricity State Aid Scheme
The European Commission has approved a $26,5 billion (€23 billion) Italian State aid scheme designed to support electricity generation from renewable energy sources, including onshore wind, solar power, hydropower, and sewage gas.
The scheme, notified by Italy, was approved under the Clean Industrial Deal State Aid Framework (CISAF), which aims to accelerate the EU’s transition toward a net-zero economy. It is expected to contribute significantly to Italy’s renewable energy expansion target of 39.4% of gross final energy consumption by 2030.
According to the announcement, the programme is projected to support the development of approximately 37.15 GW of new renewable electricity capacity, representing around 48% of Italy’s current renewable capacity.
The support will be delivered through two-way Contracts for Difference (CfDs), which provide variable payments based on a strike price. If market prices fall below the strike price, the state compensates producers; if prices exceed it, producers repay the difference. Contracts will run for up to 20 years.
The scheme will be allocated through competitive bidding for larger projects above 1 MW, while smaller installations may receive administratively set support. The European Commission stated that the measure includes safeguards to prevent overcompensation and ensure market stability.
The Commission concluded that the scheme is “necessary, appropriate and proportionate” under EU State aid rules and in line with Article 107(3)(c) of the Treaty on the Functioning of the EU.
EU Executive Vice-President for Clean, Just and Competitive Transition Teresa Ribera said: “With this €23 billion scheme, Italy will support the production of renewable electricity from various technologies, such as onshore wind, solar or hydropower, to reach the goals of the Clean Industrial Deal.”
The scheme is set to run under EU rules allowing member states to accelerate clean energy deployment until the end of 2025.
Source: ec.europa.eu
