In the first half of 2024, renewable energy production in Italy saw a significant increase of 27.3%, led by hydropower (+64.8%), photovoltaic, and wind power (total +14.6%). From January to June 2024, installed renewable capacity rose by 3,691 MW, 41% more than the same period in 2023. June's demand was equal to 25.7 billion kWh: electricity consumption increased by 1.5% compared to June 2023. 2k734q

According to data from Terna, the company managing Italy's national electricity transmission grid, headed by Giuseppina Di Foggia, in the first six months of the year production from renewable sources (+27.3% compared to the first half of 2023) exceeded that from fossil fuels for the first time, which saw a 19% drop compared to the same period in 2023, with an even sharper decline in coal production (-77.3%).

Production from renewable sources exceeds that of fossil fuels

From January to June 2024, renewable hydropower production reached a record 25.92 TWh (+64.8% compared to 15.73 TWh in the January-June 2023 period), thanks to a significant availability of hydro resources in the North, in contrast to the resource scarcity in the South.

In the first six months of 2024, 43.8% of energy demand was met by renewable sources (compared to 34.9% in the first six months of 2023), marking a historical half-year record. During this period, operational renewable capacity increased by 3,691 MW (of which 3,341 MW were photovoltaic). This value is 1,074 MW higher (+41%) compared to the same period last year.

Moreover, national needs grew by 1.1% compared to the corresponding period in 2023 (+0.5% adjusted), confirming a moderately positive trend but still below 2022 levels.

In June, 88.5% of Italy's electricity demand was met with domestic production, with the remainder (11.5%) covered by energy exchanges with foreign countries. The monthly foreign balance was 2.9 TWh, 8.6% less than in June 2023, due to import levels being substantially in line with the previous year and a significant increase in exports. Progressively, from January to June 2024, the foreign balance increased by 3.9% compared to the first six months of 2023.

In detail, national net production was 22.9 billion kWh. Renewable sources covered 52.5% of electricity demand (43.8% in June 2023). Hydropower increased by 29.4%, mainly due to contributions from northern Italy facilities, wind power by 29.2%, and photovoltaic by 18.2%. The increase in photovoltaic (+638 GWh) was due to higher production from increased operational capacity (+803 GWh) that offset lower producibility linked to radiation (-165 GWh). Geothermal (-2.8%) and thermal sources (-13.7%) decreased as a direct consequence of renewable growth.

Historical peak of hourly production from renewable energy sources

On June 22, between 1:00 PM and 2:00 PM, the historical peak of hourly production from renewable energy sources was recorded, reaching 33.2 GW. From June 2023 to June 2024, installed photovoltaic and wind capacity increased by 6,831 MW (+17.3%), reaching a total of 46,321 MW.

Last month, electricity demand was 25.7 billion kWh, 1.5% more than in June 2023. The change, although positive, did not recover the sharp decline of June last year (-9.7%) and was achieved with one less working day (20 instead of 21) and an average monthly temperature in line with June 2023. The seasonally and calendar-adjusted electricity demand increased by 2.3%.

Regions

Regionally, the trend change in June was +1.1% in the North, +1.9% in the Center, and +2.2% in the South and Islands. The Monthly Industrial Electricity Consumption Index (IMCEI) developed by Terna, which examines industrial consumption of energy-intensive companies, recorded a 2.7% growth compared to June 2023. Seasonally and calendar-adjusted data puts the change at +3.1%. Sectors such as steel, cement, paper, and chemicals showed positive growth, while ceramics, non-ferrous metals, food, and transportation vehicles declined, with mechanics remaining stable.

Seasonally and calendar-adjusted electricity demand variation was almost stable (-0.5%), while the cyclical variation of the IMCEI increased by 1.7%, indicating moderate growth. The Monthly Services Index (IMSER), published by Terna from monthly electricity consumption data provided by some distribution network operators (E-Distribuzione, UNARETI, A-Reti, Edyna, and Deval), showed a positive change of 2.2% in April 2024 compared to April 2023. Sectors such as professional, scientific, and technical activities, transportation and storage, and real estate grew, while veterinary services, finance and insurance, and hotels, restaurants, and bars declined, affected by fewer tourist arrivals also due to a different Easter holiday calendar, which fell in March this year.