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Italy’s Renewable Energy Transition: A Path to a Greener Future
Italy has been making significant strides in promoting renewable energy as part of its broader energy strategies and policies. These initiatives include the National Energy Strategy and the Integrated National Plan for Energy and Climate, both of which emphasize the importance of energy security while also pushing for a sustainable future. According to GlobalData, a leading data and analytics company, renewables are expected to surpass thermal power as the main source of electricity generation in Italy by 2030. By 2035, their share is projected to reach 55.9%.
Current Status and Future Projections
In 2024, renewable energy accounted for 43.4% of Italy's total capacity mix, and this figure is expected to rise significantly to 70.6% by 2035. Thermal power, which held a 42.3% share in 2024, is anticipated to decline to 21.4% by 2035. In terms of actual electricity generation, thermal power dominated the mix with 51.3% in 2024, while renewables contributed 34.9%. Large hydropower made up the remaining 13.8% of the generation mix.
Attaurrahman Ojindaram Saibasan, Senior Power Analyst at GlobalData, highlights that Italy does not have substantial domestic fossil fuel reserves and relies heavily on imports. As the second-largest gas importer in Europe after Germany, Italy sources natural gas from countries such as Azerbaijan, Algeria, and Libya. While this reliance on imports may offer short-term solutions, the government is actively working to expand renewable energy capacity to reduce dependence on foreign sources.
Focus on Solar and Wind Power
Currently, Italy is investing in two primary sectors: solar and wind power generation. This focus is driven by the country’s vast potential for renewable energy and its environmental goals. The government has set a target to increase the share of renewable energy in total energy consumption to 40% by 2030. Additionally, Italy aims to achieve 65% renewable electricity generation by the same year.
The country has outlined specific targets for renewable energy capacity. It plans to increase its total renewable installed capacity to 93.2GW and generate 186.8TWh through renewables by 2030. Specifically, Italy aims to reach 50GW of solar PV capacity, generating 74TWh of power through solar PV, and 18.2GW of wind capacity by that year.
Commitment to Climate Objectives
A major driver behind Italy’s power market transformation is its commitment to climate objectives at both the national and European levels. As a member of the European Union (EU), Italy is required to adhere to the EU’s “Fit for 55” package and the European Green Deal. These initiatives aim to reduce greenhouse gas emissions by at least 55% by 2030 and achieve net-zero emissions by 2050.
Saibasan notes that these ambitious targets have pushed Italy to accelerate the decarbonization of its electricity sector. The shift from fossil fuel-based power generation to renewable energy sources like solar, wind, and hydropower is central to this transition. The national strategy also emphasizes the electrification of end-use sectors—such as transportation, heating, and industry—which is expected to significantly increase electricity demand. This ongoing transformation is influencing investment decisions, grid modernization, and infrastructure planning across the power market.
Challenges Ahead
Despite these positive developments, Italy faces several challenges that need to be addressed. One of the primary issues is the country’s heavy reliance on energy imports, particularly from France and Switzerland. Overcoming this dependency will be crucial for ensuring long-term energy security and sustainability.
Conclusion
Italy’s power sector has undergone significant changes over the past few decades, and the nation is well on its way to transitioning to a green energy-based economy. With strong policy support, growing investments in renewable technologies, and a clear vision for the future, Italy is poised to lead the way in the European energy transition. However, addressing existing challenges will be essential to achieving its long-term goals.