The European Commission (EC) has approved a €23 billion (US$26.5 billion) support scheme to deploy more than 37.15GW of renewable energy capacity in Italy.
The scheme, approved under the EU’s Clean Industrial Deal State Aid Framework (CISAF), will support electricity generation from onshore wind, solar PV, hydropower and sewage gas projects.
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According to the Commission, the projects are expected to add 37.15GW of renewable energy capacity, equivalent to around 48% of Italy’s current installed renewable energy base.
The programme is designed to help Italy meet its target of sourcing 39.4% of its gross final energy consumption from renewables by 2030. The Commission said the measure would also help lower electricity prices and reduce dependence on imported energy.
Support will be provided through two-way contracts for difference (CfDs) lasting 20 years. Under the scheme, developers will receive payments when electricity market prices fall below an agreed strike price. If market prices rise above the strike price, developers will return the difference to the state.
Patrizio Donati, co-founder and managing director at independent power producer (IPP), Terrawatt, told PV Tech, “Italy has an abundance of projects and capital; with a long-term framework to connect the two, projects gain important cash flow security and bankability. The country has now put one of the biggest instruments in Europe behind its renewables sector, and Brussels’ approval of it at this scale is a clear statement of intent on financing the transition. Our job as developers now is to repay that confidence by building the capacity the scheme is designed to deliver.”
The majority of support will be allocated through competitive auctions, with developers bidding for the strike price required to make their projects viable.
Italy will run a dedicated auction process for solar PV and onshore wind projects larger than 1MW. Applicants in these tenders will be required to comply with additional pre-qualification criteria linked to the EU’s Net-Zero Industry Act.
Projects smaller than 1MW will be exempt from the auction process and will be able to access support directly. In these cases, strike prices will be set administratively by Italian energy regulator Autorità di Regolazione per Energia Reti e Ambiente (ARERA).
The Commission noted that the €23 billion budget is based on projected market conditions and that actual support costs could be significantly lower if electricity prices remain above current forecasts.
Following its assessment, the Commission concluded that the scheme complies with CISAF requirements and includes safeguards to prevent overcompensation, including measures that avoid support payments when electricity prices are negative.
The approval marks one of the largest renewable energy support programmes authorised under the EU’s Clean Industrial Deal framework since its adoption in June 2025.
The story has been updated to include comments from Patrizio Donati.
