Italy

Italy’s energy policy is strongly pro-renewables. The country has experienced impressive growth in the renewable energy sector and has been successful in integrating large volumes of variable renewable generation. Containing costs is a priority, and policies need to focus on bringing deployment costs towards international benchmarks.

Italy has also continued to progress in terms of market liberalisation and infrastructure development, notably in the electricity market where transmission improvements between north and south, as well as market coupling, have resulted in price convergence throughout the country. Development in the gas sector has been slower, and greater progress is needed if Italy is to be become a southern European gas hub. Furthermore, institutional arrangements within the energy sector remain complex and should be reformed and strengthened.

The Government is revising incentives and subsidies which are not considered to be efficient or aligned with decarbonisation targets. There is a general discussion related to taxation in the energy sector, while most economically fragile categories will need to remain protected.

Last updated May 23, 2023