Italy Launches Long-Term Support Scheme for Up to 37.15GW of Renewables

Italy has introduced a new long-term support scheme for renewable energy projects, aiming to support up to 37.15GW of new capacity by the end of 2030 and improve investment certainty for developers.

Up to 10GW of Solar Capacity

The scheme covers solar PV, onshore wind, hydropower and sewage-gas generation.

Projects up to 1MW can apply directly for support, with a combined capacity limit of 10GW. Larger projects must compete in auctions, with 10GW allocated to solar PV and 16.5GW to onshore wind, alongside smaller allocations for hydropower and sewage-gas projects.

20-Year Contracts Provide Revenue Stability

Supported projects will receive 20-year two-way Contracts for Difference (CfDs). When market prices fall below the contracted strike price, generators receive compensation for the difference. When market prices rise above the agreed price, excess revenue is returned.

Reference prices are set at €80/MWh for large-scale solar, €85/MWh for onshore wind and €90/MWh for hydropower, while final prices will be determined through competitive auctions.

Supply Chain Resilience Included

The scheme also incorporates supply-chain requirements aligned with the EU Net-Zero Industry Act. At least 30% of annual solar and wind auction capacity will be allocated through dedicated procedures that consider factors such as supply-chain resilience, sustainability, cybersecurity and equipment sourcing.

Implementation Remains a Key Challenge

Italy aims to increase total renewable capacity from around 85.2GW currently to 131GW by 2030. The new framework could provide stronger revenue visibility for developers, but project permitting, grid development and auction pricing will remain important factors in determining how much of the planned capacity is ultimately built.

The new mechanism therefore represents a significant expansion of Italy’s renewable support framework, with solar and onshore wind expected to account for most of the new competitive capacity.