The European Commission has approved a €23 billion Italian state aid programme aimed at developing electricity generation from renewable energy sources (RES), Report informs, citing the European Commission.
The programme supports the construction of wind power, solar generation, hydroelectric facilities, and biogas plants derived from wastewater in Italy. New projects are expected to bring 37.15 GW of capacity online, which is equivalent to approximately 48% of Italy’s current renewable generation capacity.
According to the European Commission, the programme should help Italy achieve its target of raising the share of RES in final electricity consumption to 39.4% by 2030, as well as contribute to reducing electricity prices and the European Union’s dependence on imported energy carriers.
Support will be provided through two‑way contracts for difference (CfDs) valid for 20 years. If the market price of electricity falls below the contract‑stipulated price, the state will compensate the producer the difference. If the market price is higher, companies will pay the difference back to the state.
The European Commission noted that if electricity market prices turn out higher than forecast, actual budget expenditures could be significantly lower than the announced €23 billion.
https://report.az/en/energy/eu-approves-23b-state-aid-program-for-italy-s-renewables