{"id":107122,"date":"2025-06-04T09:31:18","date_gmt":"2025-06-04T09:31:18","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=107122"},"modified":"2025-08-14T13:36:53","modified_gmt":"2025-08-14T13:36:53","slug":"italy-renewable-energy","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/italy-renewable-energy\/","title":{"rendered":"Italy: Renewable Energy"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-107122","comparative_guide","type-comparative_guide","status-publish","hentry","guides-renewable-energy","jurisdictions-italy"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Norton Rose Fulbright<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2020\/03\/Norton-Rose-.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Norton Rose Fulbright<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2020\/03\/Norton-Rose-.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Renewable Energy laws and regulations applicable in Italy<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have an established renewable energy industry? What are the main types and sizes of current and planned renewable energy projects? What are the current production levels? What is the generation mix (conventional vs renewables) in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Italy has a well-established renewable energy industry and is a leader in this industry, with significant investments and developments in various renewable sources. Italy&#8217;s energy generation mix includes both conventional and renewable sources.<\/p>\n<p>The main types of renewable energy projects include hydropower (35%), solar (26%), wind (20%), biomass (14%), and geothermal (5%). The 1.6 million of renewable plants installed as of 2023 registered a global power capacity of 66.8 GW, with a gross production of 116.6 TWh. The largest share of renewable energy came from hydro facilities in the north and solar photovoltaic plants.<\/p>\n<p>Natural gas is the dominant fuel, accounting for around 50% of electricity generation. In terms of generation mix, according to the data provided by Terna S.p.A., in 2024 Italy covered 41.2% of the power demand through renewables.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key developments in renewable energy in your country over the last 12 months?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Significant growth was seen in renewable generation in the last 12 months. Italy added 7,480 MW of new renewable power capacity, increasing the total capacity to 76.6 GW.<\/p>\n<p>In particular, in the solar sector there has been a focus on integrating innovative technologies with agricultural\/farming activities and floating solar farms, which increase efficiency and make use of previously underutilized spaces. New onshore wind farms have also been developed, particularly in the southern regions and islands, while offshore wind projects (including floating projects) are in various stages of planning and development.<\/p>\n<p>Italy has invested in modernising its existing hydroelectric plants to improve efficiency, upgrading turbines and implementing advanced control systems. In parallel, there has been an increase in small-scale hydroelectric projects, particularly in mountainous regions, which contribute to local energy needs and reduce reliance on fossil fuels.<\/p>\n<p>The use of biomass and biogas has been promoted through the use of agricultural and industrial waste. New biogas plants have been established, converting organic waste into renewable energy. Government incentives have encouraged the development of biomethane plants, contributing to the diversification of Italy&#8217;s renewable energy portfolio.<\/p>\n<p>Finally, to address the intermittency of renewable energy sources, Italy has massively invested in battery storage projects. These projects aim at storing excess energy generated during peak production times and releasing it during periods of high demand. The increase of battery storage solutions is also enhanced by the new incentive scheme in place (MACSE), for which the first auctions will be launched on 30 September 2025.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are your country's net zero\/carbon reduction targets? Are they law or an aspiration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Italy aims to achieve net zero emissions by 2050, with interim targets of reducing greenhouse gas emissions by 55% by 2030. These targets are legally binding under the climate and energy targets of Regulation (EU) 2021\/1119 establishing the framework for achieving climate neutrality (<strong>European Climate Law<\/strong>).<\/p>\n<p>While Italy has made significant progress, achieving these ambitious targets will require continued effort and investment. Challenges include transitioning to renewable energy, upgrading infrastructure, and ensuring economic and social impacts are managed effectively.<\/p>\n<p>The National Energy and Climate Plan (<strong>NECP<\/strong>) setting the Italian strategy to meet the European Climate Law has provided ambitious targets for 2030. While Italy seems to be on track to reach the targets relating renewables, it is a bit behind schedule in relation to the targets of energy efficiency.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal definition of 'renewable energy' in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. In Italy, renewable energy is defined by Legislative Decree No. 119 of 8 November 2021 (implementing EU Directive 2019\/944), which includes energy produced from non-fossil sources such wind, solar (solar thermal and solar photovoltaic), geothermal energy, ambient energy, tide, wave and other ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas, and biogas.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who are the key political and regulatory influencers for renewables industry in your jurisdiction? Is there any national regulatory authority and what is its role in the renewable energy market? Who are the key private sector players that are driving the green renewable energy transition in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Key political and regulatory influencers include the Ministry of Environment and Energy Security (<strong>MASE<\/strong>), which is the political body setting the targets and the general guidelines for the renewable sector.<\/p>\n<p>The National Regulatory Authority for Energy, Networks and the Environment (<strong>ARERA<\/strong>) oversees the energy market, including renewables. It is an independent body which aims at protecting consumer interests and promoting the competition, efficiency and distribution of services with adequate levels of quality, through regulatory and control activities.<\/p>\n<p>The Energy Market Operator GSE S.p.A. (<strong>GSE<\/strong>) is a wholly State-owned company and is in charge of promoting renewables and energy efficiency in Italy. GSE is the entity which is responsible for the majority of the renewable energy schemes in Italy.<\/p>\n<p>Terna S.p.A. (<strong>Tena<\/strong>) is the first grid operator for electricity transmission in Europe and is responsible for the expansion and management of the grid infrastructure. It is also the main entity in charge of interconnecting renewable energy plants to the national grid.<\/p>\n<p>Gestore Mercati Energetici S.p.A. (<strong>GME<\/strong>) was set up by GSE and operates power, gas and environmental markets. In particular, in the energy sector it operates a forward physical market (MTE), a market for the trading of daily products (MPEG) with continuous trading mode, a day ahead auction market (MGP), an intraday auction market (MI). It also operates a platform for ancillary services (MSD) on behalf of Terna and a platform for the registration of OTC transactions (PCE).<\/p>\n<p>Major private sector players driving energy transition in Italy include A2A, Acea, Edison Energia, EF Solare, Enel Green Power, ERG, Iberdrola, Sorgenia, E.on, Iren, Falck Renewables and Axpo Italia.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the approaches businesses are taking to access renewable energy? Are some solutions easier to implement than others? If there was one emerging example of how businesses are engaging in renewable energy, what would that be? For example, purchasing green power from a supplier, direct corporate PPAs or use of assets like roofs to generate solar or wind?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Businesses in Italy are increasingly engaging in renewable energy through purchasing green power from suppliers, as well as green certificates and guarantees of origin to reduce their level of carbon emissions.<\/p>\n<p>They are also investing in direct corporate PPAs and onsite renewable energy generation to mitigate future electricity pricing risk. A few businesses participate in community energy projects (<em>comunit\u00e0 energetiche rinnovabili &#8211; <\/em>CER), involving multiple stakeholders pooling resources to develop renewable energy projects. These initiatives are supported by national subsidies and non-refundable contributions for the expenses borne for the construction of the relevant plants.<\/p>\n<p>Some companies are also using solar panels on buildings or excess land that they own to generate their own renewable energy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has the business approach noticeably changed in the last year in its engagement with renewable energy? If it has why is this (e.g. because of ESG, Paris Agreement, price spikes, political or regulatory change)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The business approach in Italy towards renewable energy has significantly evolved over the past year due to a combination of ESG criteria, international commitments, economic factors, political and regulatory support, technological advancements, and changing consumer preferences. These factors collectively drive the transition towards a more sustainable and environmentally friendly business landscape.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How visible and mature are discussions in business around reducing carbon emissions; and how much support is being given from a political and regulatory perspective to this area (including energy efficiency)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Italy, discussions around reducing carbon emissions have gained significant visibility and maturity over recent years. Italy, as a member of the European Union, is bound by the EU&#8217;s climate targets, which include reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels and achieving climate neutrality by 2050.<\/p>\n<p>The reduction of carbon emissions is mainly driven by:<\/p>\n<ul style=\"padding-left: 0\">\n<li>NECP: Italy\u2019s NECP outlines the country&#8217;s strategy to meet its climate and energy targets. It includes measures to increase renewable energy capacity, improve energy efficiency, and reduce emissions from various sectors. It was updated in 2024 to meet the new EU targets by providing, among others, an increase of energy renewable sources of 63.4% by 2030 (almost 237 TWh).<\/li>\n<li>National Recovery and Resilience Plan (<strong>NRRP<\/strong>): as part of the EU\u2019s Recovery and Resilience Facility, Italy\u2019s NRRP allocates substantial funds to green transition projects, including renewable energy, energy efficiency, and sustainable mobility.<\/li>\n<li>EU Regulations: Italy adheres to EU regulations and directives related to climate change and energy, such as the Emissions Trading System (ETS), the Renewable Energy Directive, and the Energy Efficiency Directive.<\/li>\n<\/ul>\n<p>The Italian government has shown a strong commitment to addressing climate change. Regional and municipal governments are also playing a crucial role in driving local initiatives to reduce carbon emissions and improve energy efficiency.<\/p>\n<p>However, some of the 2030 targets will not be reached. In particular, the reduction of the emissions set forth by the EU in connection with the EU legislation concerning the Effort Sharing Regulation (e.g. the emissions generated by transports, manufacturing activities, residential activities and agriculture) and the Land Use, Land-Use Change and Forestry Regulation will not be met.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are rights to explore\/set up or transfer renewable energy projects, such as solar or wind farms, granted? How do these differ based on the source of energy, i.e. solar, wind (on and offshore), nuclear, carbon capture, hydrogen, CHP, hydropower, geothermal; biomass; battery energy storage systems (BESS) and biomethane?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The procedures for the construction and operation of renewable plants are set forth under Legislative Decree no. 190 of 25 November 2024 (<strong>Renewable Energy Code<\/strong>), repealing the former regulatory framework and introducing streamlined procedures for the authorisation of renewable plants.<\/p>\n<p>In general terms, the procedures to explore\/set up renewable energy projects are similar for all the sources of energy. There are three different procedures depending on the size of the projects and technical features:<\/p>\n<ol style=\"padding-left: 0\" type=\"i\">\n<li>free activity, not requiring any specific permit but just the compliance with minimal technical and environmental conditions;<\/li>\n<li>the simplified authorising procedure (or PAS) designed for projects of medium-complexity not requiring full environmental assessments which, unless the proceeding authority deems necessary to start a formal authorisation procedure, is usually obtained by virtue of a silent-consent mechanism upon submission of an application with the competent Municipality; and<\/li>\n<li>the single authorisation procedure for large-scale projects generally requiring a full environmental assessment.<\/li>\n<\/ol>\n<p>The standard procedure for the issuance of the single authorisation is structured in the form of a steering committee where all the authorities possibly impacted by the project express their opinions. The title granted upon conclusion of this procedure is a comprehensive permit which, save for minor permits and authorisation to be separately obtained, is generally sufficient to build and operate a project.<\/p>\n<p>As a condition to commence the procedure for the issuance of the title, the developer is required to have obtained the availability of the project land (usually this is done by means of option rights\/preliminary sale and purchase agreements and\/or surface agreements) and secured the availability grid connection. Depending on the technical features and power capacity of the plant, before commencing the single authorisation procedure, the project may also need to undergo a positive environmental assessment with regional or national authorities. After the obtainment of the single authorisation the final grid connection must be requested to the grid operator and definitive land agreements must be executed. The single authorisation contains a number of conditions to be complied with before and during construction works, during the operation and upon commissioning.<\/p>\n<p>Besides the above, additional permits and authorisations may be required from time to time depending on the type of technology and technical features of the plant. For example, public domain concessions for offshore installations are necessary.<\/p>\n<p>There are no specific restrictions to the transfer of renewable energy projects, noting that in general the issuing authority must formally authorise the transfer, especially if the plant is incentivised. The regional regulations may anyway introduce stricter criteria for the transfer of the ownership of the company owning the rights over the project, for example by conditioning the transfer of the project to the reaching of the ready-to-build status (like in Sicily Region). A case-by-case analysis would be required from time to time.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the government directly involved with the renewables industry (auctions etc)? Are there government-owned renewables companies or are there plans for one?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Italian government is actively involved in the renewables industry through auctions and incentive schemes, not directly but mainly through GSE.<\/p>\n<p>The government supports private sector initiatives and is also one of the main shareholders of Enel S.p.A. (owning an interest of 23.6%) and of Eni S.p.A. (2.084% directly and 29.71% through Cassa Depositi Prestiti S.p.A.).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the government\u2019s plans and strategies in terms of the renewables industry? Please also provide a brief overview of key legislation and regulation in the renewable energy sector, including any anticipated legislative proposals?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The government\u2019s plans include increasing renewable energy capacity and improving grid infrastructure. Among the main initiatives that can be anticipated, reference shall be made in particular to the following ones:<\/p>\n<ul style=\"padding-left: 0\">\n<li><strong>Creation of acceleration areas<\/strong>: to ensure the achievement of renewable energy targets outlined in the NECP for 2030, by 21 May 2025 GSE will publish on its website a mapping of the national territory identifying the national potential and available areas for the installation of renewable energy production plants and storage plants. By 21 February 2026, based on such mapping, each Region shall enact a plan to identify acceleration zones for renewable energy plants and storage plants.<\/li>\n<li><strong>FER Z<\/strong>: by the end of 2025 MASE will submit to the EU Commission a new incentive scheme for utility-scale renewables which aims at shifting from a centralised asset-based model to a decentralised model with a standard in which operators choose the technological mix to meet demand, while the State establishes the quantity and location of renewable sources necessary to meet decarbonisation targets.<\/li>\n<li><strong>Streamlined procedures for data centres<\/strong>: even though the proliferation of data centres (especially in Lombardy and Piedmont Regions, which have reached more than 25GW of connection requests) is increasing the costs of energy, there might also be opportunities to boost energy transition. Among the initiatives under assessment by the Government there are streamlined procedures to authorise the construction and operation of data centres and connect them to the grid, according to priority criteria which take into account the fact that the installation is supplied by renewable energy sources.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any government incentive schemes promoting renewable energy (direct or indirect)? For example, are there any special tax deductions or subsidies (including Contracts for Difference) offered? Equally, are there any disincentives?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Italy offers various incentive schemes and Contracts for Difference (<strong>CfDs<\/strong>) to promote renewable energy. These support measures aim to reduce the financial burden on renewable energy projects.<\/p>\n<p>Among the initiatives enacted between 2024 and 2025 by the Government to promote renewable energy the following should be mentioned:<\/p>\n<ul style=\"padding-left: 0\">\n<li><strong>FER 2 <\/strong>(MASE Decree of 19 June 2024): it is an incentive scheme to promote innovative renewable energy technologies, including offshore wind, floating photovoltaic, geothermal, tidal, wave and other forms of marine energy. The subsidy is different depending on the size of the plant. For plants with capacity below 300 kW the GSE directly collects and sells the electricity and pays an all-inclusive tariff in relation to the net production injected into the grid; for plants exceeding 300 kW all energy produced remains with the producer which can autonomously provide for its sale on the market. In relation to the plants &gt; 300 kW the GSE calculates the difference between the tariff due and the zonal price of energy. If the tariff awarded in the auction procedure is lower than the zonal price of energy the GSE pays the relevant difference to the producer as a premium tariff. In the other scenario (i.e. the market price is lower than the awarded tariff), the GSE will request the producer to pay the difference.<\/li>\n<li><strong>Energy Release 2.0 <\/strong>(MASE Decree 268 of 23 July 2024): Through an offtake contract which is structured as a CfD, energy-intensive companies are eligible to obtain an advance of electricity from the GSE for three years at a fixed price (\u20ac 65MW\/h, not subject to indexation or inflation), in exchange for the commitment to construct new renewable generation plants with a capacity at least twice the capacity received through the offtake contract. The renewable capacity to be \u201creturned\u201d to the GSE will also be subject to a CfD for 20 years.<\/li>\n<li><strong>Mechanism for the Supply of Electric Storage Capacity (MACSE <\/strong>\u2013 Legislative Decree 210 of 8 November 2021): it sets out the remuneration scheme for battery storage plants with long-term capacity contracts. In particular, newly constructed storage facilities will receive a premium (to be determined through competitive auction processes), in exchange for the allocation of the corresponding storage capacity for the provision of so-called time-shifting products, enabling market operators to trade them in the market as a virtual storage. In addition, through the provision of additional premiums, operators are encouraged to make any unused time-shifting capacity available on the MSD.<\/li>\n<li><strong>Transitional FER X <\/strong>(MASE Decree of 30 December 2021): it is an incentive scheme which will be in place until 31 December 2025 for new renewable capacity generated by photovoltaic, wind, hydroelectric and residual gas treatment plants from purification processes. For plants with capacity below 200 kW the GSE directly collects and sells the electricity and pays an all-inclusive tariff in relation to the net production injected into the grid; for plants exceeding 200 kW all energy produced remains with the producer which can autonomously provide for its sale on the market. In relation to the plants &gt; 200 kW the GSE calculates the difference between the tariff due and the zonal price of energy. If the tariff awarded in the auction procedure is lower than the zonal price of energy the GSE pays the relevant difference to the producer as a premium tariff. In the other scenario (i.e. the market price is lower than the awarded tariff), the GSE will request the producer to pay the difference.<\/li>\n<\/ul>\n<p>On the other hand, there are other measures enacted in the same timeframe that disincentivise the expansion of renewables. Reference is made to:<\/p>\n<ul style=\"padding-left: 0\">\n<li><strong>Agricoltura Decree <\/strong>(Law Decree 63 of 15 May 2024): it has imposed a general ban on ground-mounted photovoltaic plants on agricultural land with some exceptions (e.g. agri-voltaic plants), potentially limiting opportunities of developing new solar plants.<\/li>\n<li><strong>Suitable Areas Decree <\/strong>(Ministerial Decree of 21 June 2024): it has deferred to the Regions the identification of areas to be considered suitable and unsuitable for the development of renewable plants. This has led to varied regional approaches and a general deceleration in the installation of new plants, pending claims in Court to challenge the regulations that have significantly restricted the possibility to exploit certain areas. The Suitable Areas Decree itself has also been partially suspended by the Council of State, since the wording of article 7 seems to leave room to the Regions to further limit the possibility of identifying suitable and unsuitable areas. In the meanwhile, on 13 May 2025 the Regional Administrative Court of Lazio Region has issued a decision stating that the Suitable Areas Decree is partially illegitimate to the extent it gives wide discretion to the Regions in the identification of suitable\/unsuitable areas. As a consequence of this decision, MASE will have to partially revise the Suitable Areas Decree and the Regions will have to stick to the criteria identified by MASE, without the possibility of introducing additional unsuitable areas in the regional implementing regulations.<\/li>\n<li><strong>Ban on new renewable plants <\/strong>(Regional Law 5 of 3 July 2024): the Sardinia Region has introduced a ban to the authorisation\/construction of renewable plants for 18 months. Despite this legislation has been declared illegitimate by the Constitutional Court in the month of March 2025, many projects that were undergoing authorisation procedures have been interrupted and, as a result, the majority of new projects that were approaching the construction phase are temporarily on hold.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the structure of the natural gas industry in your country impact the price of electricity? Are there any plans to de-link the price of renewable electricity from gas prices?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The price of electricity in Italy is closely linked to the price of natural gas due to the significant role that gas-fired power plants play in the energy mix. Natural gas is a primary fuel for electricity generation, and fluctuations in gas prices directly affect the cost of producing electricity. Additionally, the Italian electricity market operates on a marginal pricing system, where the price of electricity is set by the most expensive unit of electricity needed to meet demand. Since gas-fired plants often set the marginal price, any increase in natural gas prices can lead to higher overall electricity prices.<\/p>\n<p>There have been discussions and initiatives aimed at de-linking the price of renewable electricity from natural gas prices in Italy. Some of the measures being considered or implemented include:<\/p>\n<ul style=\"padding-left: 0\">\n<li><u>Long-term Power Purchase Agreements<\/u> (PPAs): encouraging the use of PPAs between renewable energy producers and consumers can provide price stability and reduce reliance on spot market prices influenced by natural gas.<\/li>\n<li><u>Capacity Mechanisms<\/u>: implementing capacity mechanisms that reward renewable energy producers for their available capacity rather than the energy they produce can help stabilize prices.<\/li>\n<li><u>Renewable energy auctions<\/u>: conducting auctions for renewable energy projects with fixed-price contracts can ensure that the price of renewable electricity is not directly tied to natural gas prices. The Transitional FER X, FER 2 and Energy Release schemes go towards this direction.<\/li>\n<li><u>Grid investments<\/u>: investing in grid infrastructure to better integrate renewable energy sources can reduce the dependency on gas-fired power plants and mitigate the impact of gas price fluctuations on electricity prices.<\/li>\n<li><u>Regulatory reforms<\/u>: introducing regulatory reforms that decouple the pricing mechanisms for renewable energy from those of fossil fuels can help create a more independent and resilient renewable energy market.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the significant barriers that impede both the renewables industry and businesses' access to renewable energy? For example, permitting, grid delays, credit worthiness of counterparties, restrictions on foreign investment, regulatory constraints on acquisitions; disputes\/challenges?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The barriers can be broadly categorised into regulatory, financial, and infrastructural challenges:<\/p>\n<ul style=\"padding-left: 0\">\n<li><u>Complex permitting processes\/frequent regulatory changes<\/u>: the process to obtain permits for renewable energy projects in Italy is often lengthy and complex as multiple opinions are required from different authorities, which can lead to significant delays. Frequent changes in policies and regulations can create uncertainty for investors and developers. The new Renewable Energy Code should hopefully reduce the complexity linked with the obtainment of the main construction and operation permits.<\/li>\n<li><u>NIMBY approach<\/u>: Local communities and Municipalities sometimes oppose renewable energy projects, leading to further delays and complications in the permitting process.<\/li>\n<li><u>Grid issues<\/u>: delays in connecting renewable energy projects to the national grid is due to the limited capacity of the existing grid infrastructure and the time required to upgrade it. Also, in some Regions, the grid is already virtually congested (especially in Sicily, Apulia and Lazio), meaning that the interconnection requests exceed the capacity of the network to host them. Considering that many of the interconnection requests are related to renewable plants that will not manage to obtain an authorisation, this scenario makes it difficult to plan new investments in grid expansion and modernisation. Terna, Arera and MASE are currently working to implement new solutions to mitigate this scenario.<\/li>\n<li><u>Creditworthiness of counterparties<\/u>: the financial stability and creditworthiness of counterparties, such as offtakers and project developers, can be a concern. This affects the ability to secure financing for renewable energy projects.<\/li>\n<li><u>Economic viability<\/u>: the economic viability of renewable energy projects can be affected by factors such as fluctuating energy prices, as well as the availability of subsidies and incentives.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key contracts you typically expect to see in a new-build renewable energy project?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Key contracts in new-build renewable energy projects typically include:<\/p>\n<ul style=\"padding-left: 0\">\n<li>land agreements (typically surface rights agreements and sale and purchase agreements),<\/li>\n<li>Engineering, Procurement, and Construction (<strong>EPC<\/strong>) contracts,<\/li>\n<li>Operation and Maintenance (<strong>O&amp;M<\/strong>) agreements,<\/li>\n<li>other equipment supply agreements (e.g. photovoltaic panel supply agreements),<\/li>\n<li>grid connection agreements,<\/li>\n<li>management services agreements,<\/li>\n<li>project agreements or other agreements providing the funding for the development of the project<\/li>\n<li>PPAs with offtakers or CfDs.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the export of renewable energy, local content obligations or domestic supply obligations? What are the impacts (either actual or expected) of the implementation of the Net Zero Industry Act (EU) Regulation 2024\/1735?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In general terms, there are no specific restrictions on the export of renewable energy within the EU, as the EU promotes the free movement of goods and services, including energy. However, there are certain considerations and regulations that must be taken into account:<\/p>\n<ul style=\"padding-left: 0\">\n<li><u>Grid capacity and interconnection<\/u>: the ability to export renewable energy is contingent upon the capacity and interconnection agreements with neighbouring countries. Adequate infrastructure must be in place to facilitate the transfer of energy across borders.<\/li>\n<li><u>Compliance with EU Regulations<\/u>: exporting renewable energy must comply with EU regulations, including those related to energy market integration, environmental standards, and technical requirements.<\/li>\n<li><u>National energy policies<\/u>: while there are no outright restrictions, national energy policies may influence the extent and manner in which renewable energy is exported. These policies aim to ensure energy security and balance domestic supply and demand.<\/li>\n<\/ul>\n<p>The Net Zero Industry Act (EU) Regulation 2024\/1735 is expected to enhance the competitiveness of the renewable energy sector, even though at the moment the Regulation has not been implemented yet.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has deployment of renewables been impacted in the last year by any non-country specific factors: For example, financing costs, supply chain or taxes or subsidies (e.g. the US's Inflation Reduction Act)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the last year rising financing costs, supply chain disruptions, changes in international policies, and global economic conditions have all played a role in shaping the renewable energy landscape. In particular, tariffs on imported solar panels or restrictions on the export of critical materials have increased costs and created supply bottlenecks. Also, higher borrowing costs have made it more challenging for developers to secure affordable financing, potentially delaying or scaling down projects.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Could you provide a brief overview of the major projects that are currently happening in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Major projects include large-scale solar and wind farms, hydropower expansions, and the development of energy storage systems.<\/p>\n<p>Notable projects are both located in Sicily and include (i) Med Wind (Renexia Group), the first floating offshore wind farm in the Mediterranean with 190 floating turbines, an installed capacity of about 2,8 GW and an estimated annual production of almost 9 TWh, guaranteeing by itself a growth of almost 50% of the wind energy produced in Italy, and (ii) Fenix, the largest solar plant in Italy with an authorised capacity of 245 MW, developed by Iberdrola and ib vogt GmbH.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How confident are you that your jurisdiction can become a leader in newer areas like offshore wind or hydrogen?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Thanks to its geographical advantages (e.g. the gas infrastructure connecting North Africa to the rest of Europe) and existing renewable energy capacity, Italy is well placed to support these innovative technologies. Offshore wind will certainly benefit from the new FER 2 incentive scheme (with a few projects underway), while the key initiatives in the hydrogen sector include:<\/p>\n<ul>\n<li><u>National Hydrogen Strategy<\/u>: Italy has developed a national hydrogen strategy aimed at promoting the production and use of green hydrogen, especially in the hard-to-abate industries. This strategy outlines goals for hydrogen production, infrastructure development, and integration into various sectors.<\/li>\n<li><u>Hydrogen Valleys<\/u>: Italy is participating in the European Hydrogen Valleys initiative, which aims to create regional hubs for hydrogen production and utilization. These hubs will serve as centres for innovation and collaboration in the hydrogen sector. As at May 2024 Italy counted 54 approved projects (almost a half in Apulia Region).<\/li>\n<li><u>Pilot projects<\/u>: several pilot projects are underway in transportation, industrial applications (especially in the steel industry), and energy storage (such as the use of the heat produced by data centres to fuel district heating facilities).<\/li>\n<\/ul>\n<p>Notwithstanding the above, at the moment there are no significant plans of investments\/regulatory support in these technologies. Instead, there are more pilot projects or single initiatives developed on an experimental basis rather than systematically. Becoming a leader in these technologies will require addressing infrastructure and regulatory challenges, as well as securing significant investment. Based on the NCEP 2030 it is clear that Italy has made a clear preference to other forms of technologies (mainly solar, hydroelectric and BESS).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are renewables projects commonly financed in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Renewable projects in Italy are commonly financed through a mix of public and private investments, including green bonds, bank loans, and equity financing.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is your forecast for the coming year(s) for renewable energy in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The forecast for renewable energy in Italy is positive, with continued growth expected in solar, biofuels, and energy storage sectors. The government\u2019s supportive policies and the private sector\u2019s commitment to sustainability will drive this growth.<\/p>\n<p>The electricity spot price is expected to remain relatively high due to the ongoing reliance on gas and the huge investments required to expand the grid capacity.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">5108<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/107122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=107122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}