Italy: The European Commission has approved a $26.5 B (€23 B) Italian State aid scheme to support new renewable electricity generation.
The measure is aimed at accelerating Italy’s transition towards a net-zero economy, strengthening energy security and reducing dependence on imported fossil fuels. It was approved under the Clean Industrial Deal State Aid Framework, adopted by the Commission on 25 June 2025.
The scheme will support new renewable energy installations using onshore wind, solar, hydropower and sewage gas technologies. The planned projects are expected to add around 37.15 GW of renewable electricity capacity, equal to almost 48 % of Italy’s current renewable energy capacity.
According to the Commission, the measure will help Italy reach its target of sourcing 39.4 % of gross final energy consumption from renewables by 2030. It is also expected to contribute to lower electricity prices and wider EU decarbonisation goals.
Support will be provided through two-way Contracts for Difference. Under this model, producers receive compensation when market electricity prices fall below an agreed strike price. When prices rise above that level, they repay the difference. The contracts will run for 20 years.
Most funding will be awarded through transparent and non-discriminatory competitive bidding. Italy will hold a dedicated tender process for solar and wind projects above 1 MW. Smaller renewable facilities below 1 MW will be able to join the scheme directly, with strike prices set administratively by ARERA.
The Commission concluded that the measure is necessary, appropriate and proportionate to support renewable energy deployment.
Source: Solar Quarter
