EU approves $38 billion in subsidies for Italy

The European Commission has given the green light to an Italian state aid plan worth up to €35.3 billion over the next 20 years to support growth in renewable electricity generation.

Share:

subventions renouvelables Italie Union Européenne

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

These subsidies, which will be financed by a tax included in electricity bills and paid by consumers, will help Italy reduce its carbon emissions, according to the EC (European Commission). They will run until the end of 2028, and will support the construction of new power plants using innovative technologies such as geothermal, offshore wind, biogas and biomass. These new installations should add a total of almost 4.9 gigawatts (GW) of renewable electricity capacity to the Italian power system. The aid will take the form of a bilateral contract for difference for each kilowatt-hour of electricity produced and fed into the grid, and will be paid for a period equal to the useful life of the plants.

A transparent, non-discriminatory bidding process

Projects will be selected through a transparent, non-discriminatory bidding process, where beneficiaries will bid on the incentive tariff – the strike price – required to complete each individual project. This mechanism is designed to ensure the efficient allocation of public funds. Italy, which last year was Europe’s biggest importer of electricity due to above-average energy costs, is counting on these massive investments in renewables to strengthen its energy independence. The country thus intends to accelerate its transition to a low-carbon economy, in line with EU (European Union) climate objectives.
Brussels’ approval of this state aid plan is a strong signal of European support for Italy’s efforts to decarbonize its electricity mix. It remains to be seen whether these incentives will be sufficient to stimulate the necessary private investment and enable rapid deployment of the planned renewable capacities.

The European Commission is reviving efforts to abolish daylight saving time, supported by several member states, as the energy savings from the practice are now considered negligible.
Rising responses to UNEP’s satellite alerts trigger measurement, reporting and verification clauses; the European Union sets import milestones, Japan strengthens liquefied natural gas traceability; operators and steelmakers adjust budgets and contracts.
The Finance Committee has adopted an amendment to overhaul electricity pricing by removing the planned redistribution mechanism and capping producers' profit margins.
The European Commission unveils a seven-point action plan aimed at lowering energy costs, targeting energy-intensive industries and households facing persistently high utility bills.
The European Commission plans to keep energy at the heart of its 2026 agenda, with several structural reforms targeting market security, governance and simplification.
The new Liberal Democratic Party (LDP)–Japan Innovation Party (Nippon Ishin no Kai) axis combines a nuclear restart, targeted fuel tax cuts and energy subsidies, with immediate effects on prices and risk reallocations for operators. —
German authorities have ruled out market abuse by major power producers during sharp price increases caused by low renewable output in late 2024.
A new International Energy Agency report urges Maputo to accelerate energy investment to ensure universal electricity access and support its emerging industry.
Increased reliance on combined-cycle plants after the April 28 blackout pushed gas use for electricity up by about 37%, bringing total demand to 267.6 TWh and strengthening flows to France.
The United States announces a tariff increase beyond the 10% base rate targeting several Colombian products. Bogotá has recalled its ambassador. The detailed list of tariff lines has not yet been published, while Colombia’s ban on coal exports to Israel remains in effect.
The president-elect outlines a pro-market agenda: gradual reform of fuel subsidies, review of Yacimientos de Litio Bolivianos (YLB) lithium contracts, and monetization of gas transit between Argentina and Brazil, prioritizing supply stabilization.
A three-year partnership has been signed between Senegal and two Quebec-based companies to develop the country’s geoscientific capacity and structure its energy sector through technological innovation.
The South African government plans 105,000 MW of additional capacity by 2039 to redefine its energy mix, support industrialisation, and strengthen supply security.
The Dutch government is initiating legislative reform to extend the Borssele nuclear plant until 2054 and has formalised the creation of a public entity to develop two new reactors.
The United Kingdom unveils a structured plan to double clean energy jobs, backed by over £50 billion ($61.04bn) in private investment and the creation of new training centres across industrial regions.
Vice President Kashim Shettima stated that Nigeria will need to invest more than $23bn to connect populations still without electricity, as part of a long-term energy objective.
Talks on the Net-Zero Framework, which seeks to regulate greenhouse gas pricing on marine fuels, have been postponed until 2026 following a majority vote initiated by Saudi Arabia.
Enedis will progressively reorganise off-peak hour time slots from 1 November, impacting 14.5 million customers by 2027, under new rules set by the Energy Regulatory Commission.
A report highlights the financial burden of fossil imports during the energy crisis and points to electrification as key to European energy security.
Prime Minister Sébastien Lecornu announced a review of public funding for renewable energy, without changing national targets, to avoid rent-seeking effects and better regulate the use of public funds.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.