In recent months, Italy has introduced significant changes to its renewable energy regulatory framework, primarily through the Suitable Areas Decree and Consolidated Legislative Decree 190/2024. According to Andrea Sticchi Damiani, founder of his namesake legal firm, these updates reflect a tightening of regulations that could hinder the implementation of clean energy projects.
“The current framework reinforces the ban on installing photovoltaic plants in agricultural areas and allows regions to adopt even stricter laws for defining suitable areas,” notes Sticchi Damiani. This approach has sparked controversy, particularly in regions such as Sardinia, where nearly the entire territory has been deemed unsuitable for renewable projects. Moreover, the region has invalidated previously granted authorisations, even for projects with significant work already underway.
On the other hand, the Suitable Areas Decree introduces a new option for developers: the expropriation of land required for connection lines through Simplified Authorisation Procedures (PAS). While this mechanism simplifies certain administrative aspects, it creates tensions between developers’ interests and property rights, especially given that regional authorities can impose stricter criteria.
A More Complex Legal Landscape for Developers
Developers will play a crucial role in navigating this new regulatory landscape, identifying suitable areas for renewable energy projects and, in many cases, challenging legal and administrative hurdles. “Securing permits may require appealing against administrative decisions or regulations that contradict European Union principles,” emphasises Sticchi Damiani.
This is not an entirely new challenge. Between 2020 and 2024, developers often faced resistance from national superintendencies, which frequently adopted blanket opposing stances without thorough technical analysis. During this period, case law played a decisive role in reshaping the balance between landscape protection and the need to expand renewable energy sources.
A notable example is the ruling by the Italian Council of State (Cons. St., No. 2983/2021), which established that installing renewable energy plants is essential for environmental protection and, consequently, for the preservation of landscapes. However, developers continue to face significant bureaucratic barriers, particularly in areas where local regulations conflict with European principles. This has led to an increased reliance on specialised legal counsel to overcome administrative restrictions and ensure projects comply with constantly evolving regulations.
Sardinia: A Region Under Scrutiny
The Autonomous Region of Sardinia exemplifies the challenges posed by these new regulations. According to a recent report, developers of photovoltaic projects face widespread roadblocks due to the region’s interpretation of the Suitable Areas Decree. The local Geographic Information System (GIS) has classified vast areas as unsuitable, citing the need to protect landscapes and biodiversity. However, this stance has drawn criticism, particularly because it jeopardises national and international decarbonisation goals.
Adding to the complexity is the legal uncertainty surrounding previously approved or ongoing projects. Sardinia has invalidated permits for projects already underway, leaving developers in a vulnerable position regarding investments already made. “The current framework not only affects new developments but also threatens the economic viability of projects that are already well advanced,” warns Sticchi Damiani.
The European Legislation as a Mediator
In this context, European Union legislation emerges as a key ally for developers. EU directives prioritise the massive deployment of renewable energy as a central strategy to achieve climate neutrality by 2050. However, developers must prepare for prolonged legal battles with local administrations that often prioritise regional interests over European climate commitments.
Italy’s situation highlights the tension between European objectives and local policies. While the Integrated National Energy and Climate Plan (PNIEC) sets ambitious 2030 goals, including a significant increase in photovoltaic capacity, regional restrictions could undermine these advancements. “It is essential for the national and regional regulatory frameworks to align with the commitments made at the European level,” stresses Sticchi Damiani.
A Challenging Yet Promising Path
Despite these restrictions, the sector presents significant opportunities, particularly through initiatives such as the Farenti Decree. This framework offers incentives and tax benefits to developers who overcome initial barriers. According to Estrategia Energética, Italy aims to add more than 20 GW of new renewable capacity by 2025, an objective that will require collaboration between regions and developers.
Moreover, the Suitable Areas Decree introduces a more inclusive approach for community actors and energy cooperatives. This model seeks to foster local participation in renewable projects, promoting more equitable access to economic and environmental benefits.
In conclusion, Italy’s new regulatory framework presents a strategic challenge for the country’s energy transition, where developers, legislators, and courts will play fundamental roles. “The successful implementation of renewable energy projects will depend on the sector’s ability to adapt and uphold the principles established by European legislation,” concludes Sticchi Damiani.
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