The European Commission has approved Italy's proposal for a state aid scheme aimed at boosting renewable energy production. This move signals a significant step towards achieving the European Green Deal objectives while reducing reliance on fossil fuels. 4l3j5z

ing green transition

The Italian scheme, slated to run until 2028, will finance the development of thousands of MW of new renewable energy capacity. This initiative aligns with the EU's strategic goals of promoting sustainability and reducing greenhouse gas emissions.

Funded through a levy on electricity bills, the scheme will the construction of new plants running on innovative and not yet mature technologies, namely geothermal energy, offshore wind power (floating or fixed), thermodynamic solar, floating solar, tidal, wave and other marine energy as well as on biogas and biomass. The plants are expected to add a total of 4.590 MW of renewable electricity capacity to the Italian electricity system. Depending on the technology, the deadline for successful plants to enter into operation varies between 31 to 60 months.

Transparent selection process

Projects will be selected through a transparent bidding process, ensuring fairness and competitiveness. Aid will be disbursed through a two-way contract for difference mechanism, providing for each kilowatt-hour of renewable energy fed into the grid.

The Commission's approval underscores the scheme's alignment with EU objectives, including the European Green Deal and the REPowerEU Plan. It reflects Italy's commitment to meeting climate targets while fostering innovation in the renewable energy sector.

Toward a greener future

By incentivizing investments in renewable energy infrastructure, the scheme aims to accelerate the transition towards a greener economy. It represents a crucial step in achieving the EU's ambitious climate goals outlined in the European Climate Law.

Flexibility in regulatory framework

The decision highlights the flexibility of the EU's regulatory framework, providing member states with tools to environmentally sustainable initiatives. It underscores the Commission's commitment to fostering green innovation and combating climate change.

The EU's approval of Italy's state aid scheme for renewable energy marks a milestone in the continent's efforts to combat climate change and transition to a sustainable energy future. It paves the way for continued collaboration between member states in achieving shared environmental objectives.