Analysis of the Sector in 2024
The renewable energy sector in Italy experienced significant growth in 2024, driven by progressive policies and substantial investments, according to the specialist. The country is accelerating its energy transition to renewable sources, with ambitious plans to have them account for 65% of its energy mix by 2030—a target that surpasses previous goals and reinforces Italy’s commitment to its objectives.
“In particular, photovoltaic solar energy has seen a resurgence, reversing a previous slowdown, although certain policies, such as restrictions on installing solar panels on agricultural land, have sparked controversy,” explains Sorge.
The Italian government is betting on technological diversification by adopting new energy production models like renewable energy communities. Recently, the European Commission approved a €5.7 billion initiative to promote these types of installations.
“These projects decentralize energy production, empowering local businesses and citizens to participate in clean energy initiatives. The focus on small-scale photovoltaic projects is expected to accelerate Italy’s green transition, complementing large-scale investments in solar and wind energy,” Sorge analyzes.
However, the specialist notes that the country faces challenges, such as continued reliance on energy imports and vulnerabilities related to climate change.
“The 2022 drought, which significantly reduced hydroelectric generation, highlighted the risks of over-relying on this renewable source. In response, Italy is diversifying its energy mix, exploring new technologies like agrivoltaics, and improving its political support for renewables to mitigate these vulnerabilities,” he details.
He predicts that the sector will grow in 2025, depending on improvements in regulatory frameworks and continued investment. Sorge estimates the addition of 5 to 6 GW of new renewable capacity annually to advance toward the goal of 70 GW of additional capacity by 2030, focusing on innovative technologies such as hybrid solar systems and agrivoltaics.
Impact of Regulatory Reforms
Italy introduced various regulatory measures to transform the renewable energy sector during 2024, such as the Decreto Aree Idonee, the Environmental Decree, and the FER Single Text.
In this context, Sorge points out that these regulations collectively contribute to a faster and more sustainable energy transition, addressing key challenges such as land-use optimization, environmental protection, and the need for quicker project approvals.
“By simplifying administrative processes and encouraging innovation, these measures not only boost investor confidence but also support a more inclusive and resilient energy transition,” he notes.
“Although permitting processes remain a bottleneck, with 50% of applications failing and average delays of six years, ongoing reforms are showing positive initial results. Simplifying permits, including removing some regional competencies for certain projects, could accelerate implementation,” he adds.
The Role of MACSE in Energy Storage
Another measure generating expectations in the sector is the role of the Storage Capacity Acquisition Mechanism (MACSE), which aims to add 9 GW of additional capacity by 2030.
The consultant highlights that this mechanism will provide stable revenues to storage projects, reducing financial risks and allowing better integration of solar and wind energy while improving grid stability.
While Italy is positioned as a mature storage market in Europe, with significant expansion reaching 12 GWh in 2024 and a 1.74 GW increase in the first ten months of the year, additional measures are still needed for its development.
Among key measures, Sorge emphasizes the need to speed up permitting processes for large-scale storage systems and expand economic incentives, especially for distributed storage and emerging technologies.
“Greater participation of storage in auxiliary services markets, capacity, and energy arbitrage should be allowed, along with promoting R&D in next-generation storage technologies,” he concludes.
0 comentarios