The European Commission has approved a €23 billion Italian scheme to support renewable electricity production, aimed at helping Italy reach about 39.4% of gross final electricity consumption from renewables by 2030.

The measure supports multiple technologies and reduces fossil fuel imports while boosting renewables, according to Teresa Ribera, the executive vice-president for clean, just and competitive transition.

Funding will be allocated through competitive bidding, but projects smaller than 1 MW can access the scheme directly.

Costs and benefits are tied to a 20-year two-way contracts for difference, with a strike price: when market prices are below the strike, the state pays the difference; when prices are above, producers repay the difference.

Support is delivered via two-way CfDs over a 20-year period, providing a strike price-based subsidy for低 price scenarios and a repayment mechanism when prices exceed the strike.

The €23 billion budget is indicative and price-responsive; actual net support may be lower if electricity prices rise beyond expectations, with safeguards for negative prices.

Actual net support may be reduced if market prices exceed expectations, ensuring safeguards against overcompensation.

The Commission deemed the scheme necessary, appropriate, and proportionate to accelerate the clean energy transition and align with the Clean Industrial Deal, under EU law.

Bidding procedures will determine most allocations, with solar and wind projects above 1 MW going through competitive pre-selection, while projects under 1 MW have administratively set strike prices by the regulator.

The plan targets adding about 37.15 GW of renewables capacity, roughly 48% of Italy’s current renewable capacity, spanning onshore wind, solar, hydropower, and sewage gas.

The scheme builds on CISAF, enabling measures to accelerate renewable rollout, support energy-intensive users, decarbonise industry, bolster clean tech manufacturing, and de-risk private investment, with eligible measures through 31 December 2025.