Italy's €23 Billion Renewable Energy Plan To Add Over 37 GW

Italy is set to invest €23 billion to support the deployment of 37.15 GW of new renewable energy capacity after the European Commission cleared its state aid scheme.  

Approved under Clean Industrial Deal State Aid Framework (CISAF), the Italian scheme will support the construction of new renewable power projects using onshore wind, solar, hydropower and sewage gas technologies.  

Altogether, these projects are expected to add 37.15 GW of renewable electricity capacity, equivalent to around 48% of Italy's current renewable energy capacity, according to the commission. Italy’s cumulative installed solar PV capacity reached around 45 GW at the end of March 2026 (see Italy’s Solar Capacity Nears 45 GW After Q1 2026 Additions).    

“This scheme will significantly contribute to Italy's decarbonisation objective of reaching 39.4% of gross final electricity consumption from renewable energy sources by 2030,” said the commission.   

The state aid under the EU-approved scheme will be provided through 2-way Contracts for Difference (CfDs), which guarantee a set price or strike price for electricity supplied to the grid. If market prices fall below this level, the government will cover the difference. If prices rise above it, companies must repay the excess.  

The contracts will run for 20 years and aim to provide long-term revenue certainty for developers. Beneficiary projects will be selected through competitive bidding processes to ensure transparency and cost efficiency. 

The commission explained that the €23 billion budget of the scheme is based on market price estimates, and actual net support may be considerably lower in case of higher-than-expected market prices. 

Italy will hold a separate competitive bidding process for solar and wind projects larger than 1 MW. Companies applying for support will need to meet additional eligibility requirements based on the EU's Net-Zero Industry Act (NZIA) rules.  

Solar and wind projects smaller than 1 MW will not need to take part in auctions or bidding rounds. These projects can receive support directly under the scheme, with the payment rate (strike price) set by Italy's energy regulator Autorità di regolazione per energia reti e ambiente (ARERA).  

Italy’s energy agency Gestore dei Servizi energetici (GSE) already runs CfD-based renewable energy auctions under Transitional FER-X Decree. It has already concluded 2 rounds having awarded 7.7 GW and 1.1 GW solar PV capacity, respectively (see Italy Awards 1.1 GW Solar PV Under 2nd FER-X Auction).  

In May 2026, GSE said it plans to launch renewable energy auctions under FER-X to allocate 10 GW of solar PV and 16 GW of wind energy across one auction in 2026 and 2 in 2027. The EU’s approval to its state aid scheme will reduce regulatory risks for renewable energy investment and give certainty to investors while encouraging allegiance to NZIA rules.  

According to the Commission, the measure complies with the Clean Industrial Deal State Aid Framework (CISAF), adopted in June 2025 (see EU Adopts New State Aid Framework To Boost Renewables). 

The Italian scheme to support electricity generation from renewable energy sources, is aimed at adding clean energy capacity to the national grid and advance its 2030 renewable energy targets. 

According to the commission, the Italian scheme is necessary and proportionate to accelerate the clean energy transition, support decarbonization and reduce reliance on imported energy.  

“With this €23 billion scheme, Italy will support the production of renewable electricity from various technologies, such as onshore wind, solar or hydropower, to reach the goals of the Clean Industrial Deal,” said Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition. “The scheme will also help Italy reduce its dependence on fossil fuels imports and enhance its renewable energy share.” 

In December 2025, the commission had cleared €1.5 billion state aid scheme for Italy to support strategic investments in clean technology manufacturing (see EU Greenlights €1.5 Billion Italian Scheme For Clean Tech Production).