EUR 9.7 billion Italian aid for renewable electricity to advance net-zero transition approved
Today, the European Commission (Commission) has approved an estimated EUR 9.7 billion Italian scheme under the Temporary Crisis and Transition Framework (TCTF) to support electricity production from renewable energy sources and foster the transition to a net-zero economy. The scheme will fund new onshore wind, solar photovoltaic, hydropower, and sewage gas installations, adding 17.65 Gigawatts of renewable electricity capacity. Plants must begin operation within 36 months of aid approval, with support provided over 20 years via a two-way contract for difference (CfD) model. Aid will be awarded through a transparent, non-discriminatory bidding process, with 95% of production supported under the CfD, leaving 5% exposed to market risk. For smaller plants under 1 Megawatt, strike prices will be set administratively.
The aid will be granted before 31 December 2025, adhering to the TCTF’s requirements. The Commission concluded that the scheme supports the EU’s climate objectives while minimizing market distortions and approved the measure.
The non-confidential version of the decision will be made available under the case number SA.115179 in the state aid register.
For further information please see the Commission’s PR.