Commission greenlights EUR 23 billion State aid scheme to support renewable electricity production in Italy
The measure will support the deployment of new onshore wind, solar, hydropower and sewage gas installations and is expected to add more than 37 GW of renewable electricity capacity. The scheme will contribute significantly to Italy’s renewable energy and decarbonisation targets for 2030, while helping to reduce electricity prices and the EU’s dependence on imported fossil fuels.
The aid will be granted through two-way Contracts for Difference (CfDs) that provide a bonus for each kWh of electricity produced and fed into the grid, based on a strike price, for a duration of 20 years. The aid for projects with capacity over 1 MW will be allocated through competitive and non-discriminatory bidding processes. Smaller installations with a capacity below 1 MW will be able to access support directly under administratively determined strike prices. The Italian authorities will organise a separate competitive procedure for solar and wind technologies with capacity over 1 MW, where applicants will have to respect additional pre-selection Net Zero Industry Act criteria designed in line with Regulation EU 2024/1735 and Implementing Regulation (EU) 2025/1176.
The Commission approved the measure under Sections 3 and 4.1.2 of the Clean Industrial Deal State Aid Framework (CISAF), finding it necessary, appropriate and proportionate to accelerate the clean energy transition and facilitate the development of renewable energy generation, in line with the objectives of the Clean Industrial Deal.
For more information, see the Commission’s PR.