EU Greenlights $26.5B Italian Clean Energy Plan Adding 37 GW Renewable Capacity
The European Commission has approved a $26,5 billion (€23 billion) Italian State aid scheme aimed at accelerating renewable electricity production across Italy. The measure is designed to support the expansion of wind, solar, hydropower, and sewage gas installations under the Clean Industrial Deal and the Clean Industrial Deal State Aid Framework (CISAF).
The scheme is expected to add approximately 37.15 GW of renewable capacity, contributing significantly to Italy’s 2030 renewable energy targets and broader EU decarbonisation goals.
According to the Commission, the support will be delivered through two-way Contracts for Difference (CfDs) lasting up to 20 years. These instruments provide producers with a guaranteed strike price: if market prices fall below it, the state pays the difference; if prices exceed it, producers repay the surplus.
EU Executive Vice-President for Clean, Just and Competitive Transition, Teresa Ribera, stated that the scheme will strengthen renewable deployment and reduce dependency on fossil fuel imports.
The aid will be allocated through competitive bidding for larger projects, while smaller installations under 1 MW may receive administratively set support. The framework also includes safeguards to prevent overcompensation during periods of negative electricity pricing.
The Commission concluded that the scheme is necessary, proportionate, and aligned with EU State aid rules under Article 107(3)(c) of the Treaty on the Functioning of the EU.
Source: ec.europa.eu
