According to Italian transmission grid operator Terna, the Italian energy sector generated record-breaking volumes of both solar PV and wind power in 2023, producing 30.6TWh and 23.4TWh of electricity respectively.
Terna reported that in 2023, the Italian solar sector generated 10.6% more electricity than in the previous year, alongside growth in the wind sector of 15.1%. This contrasts to a decline in fossil fuel generation in Italy, which saw energy produced from thermoelectric sources fall by 17.4% year-on-year and coal-fired electricity production collapse by 41.7%.
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The overall figures are broadly encouraging, with Italy relying on renewables to meet 36.8% of its energy demand in 2023, up from 31% in 2022. Last year, Italy planned to install 4GW of new solar capacity, the highest in a 12-month period for over a decade, as solar continues to account for more of the country’s energy mix.
Indeed, the European Commission has approved a €1.7 billion (US$1.8 billion) scheme to support the deployment of 1GW of agrivoltaics projects in Italy, as investors across Europe are eager to involve themselves in the Italian solar sector.
However, by the end of 2023 just 14% of annual renewables generation was met by solar power, less than hydroelectric power (38.2%), wind power (28.4%) and biomass (14.1%). Italy’s total electricity demand also fell by 2.8% year-on-year, suggesting that, while the country’s solar sector generated more electricity than ever before, solar is not necessarily a core component of a growing energy mix.
Indeed, Terna reported that the country’s net energy exports fell by 24.4% year-on-year, and net energy imports increased by 15.2% between 2022 and 2023. This suggests that the Italian energy sector is transitioning from one largely reliant on domestically-produced fossil fuels to one reliant on energy imports, rather than directly replacing its fossil fuel capacity with domestic renewables capacity.
This is not to say that the country’s renewables sector is unimportant, however. Earlier this month, the FP Lux Group purchased a 114MW solar portfolio in Italy, as investments in the country’s solar sector continue to be made.
Our publisher Solar Media is hosting the 11th Solar Finance & Investment Europe conference, 31 January – 1 February at Park Plaza in London. Discussion topics will include renewable capital allocation, scaling European solar and maximising returns for solar-plus-storage projects. See the official site for more details.
