Italy proposes Eur23.8 billion in EU funds for energy transition projects

Barcelona — Italy's parliament voted April 27 in favor of using Eur23.80 billion ($28.74 billion) of European recovery funds for energy projects as part of its National Resilience and Recovery Plan.

Within the energy sector the largest outlay proposed was on sustainable transport, which would receive Eur8.6 billion, including Eur3.6 billion for green buses and trains.

A total of Eur5.9 billion was earmarked to increase renewables to meet 2030 targets, including Eur1.1 billion for "agrovoltaics", the dual development of land for agriculture and solar photovoltaics.

The objective in this latter department was to reach 2 GW of capacity, generating 2.5 TWh per year and offsetting the emissions generated within the agricultural sector.

The proposed investment forms part of an overall Eur192 billion plan, of which Eur59 billion was earmarked for ecological transition. The plan is to be presented to the European Commission for approval by April 30.

The Ecological Transition Ministry also proposed simplifying the authorization procedures for renewable plants mostly through the harmonizing of procedures nationwide.

In 2020 Italy installed just 800 MW of renewable capacity and installed 4.5 GW over the last five years, compared to nearly 20 GW over 2010-2015.

Elsewhere in the plan, Eur4.1 billion could be spent on upgrading and digitalizing grids, while a further Eur3.2 billion was planned for development of a hydrogen industry with a target of 5 GW of electrolysis capacity by 2030.

The final draft of the proposals included the potential for 200 MW of offshore wind, potentially combined with wave power and storage technology, aiming at 490 GWh per year production, while in the gas sector, biomethane production of up to 2.5 Bcm/yr was targeted.