GlobalData: Renewables to Lead Italy’s Energy Mix by 2035
Italy is showing a strategic shift towards renewable energy to lock in its future energy security, findings from a leading data analytics and consulting company show.
The significant strides it is taking in transforming its energy landscape mainly come in the form of committing to renewable energy which is, in turn, ensuring long-term energy security and sustainability.
Historically reliant on fossil fuel imports, Italy sourced 40% of its natural gas from Russia until 2021 — then a prompt decline following Russia’s invasion of Ukraine a year later.
How is Italy supporting its long-term commitment to renewable energy?
Sudeshna Sarmah, Power Analyst at GlobalData — whose research delved into the status of Italy’s energy landscape — said: “Italy remains committed to eliminating coal-powered plants by 2025. The government aims to strengthen its national grid and prioritise the swift development of renewable energy sources.”
According to GlobalData’s Italy Power Market Size, Trends, Regulations, Competitive Landscape and Forecast, 2024-2035, Italy is projected to achieve a cumulative installed capacity of 162.7GW from renewable sources by 2035, with renewables comprising 69% of its power capacity mix.
The report also reveals that Italy is expected to have 107.7GW of renewable capacity by the end of the decade. The share of renewables in total annual generation is anticipated to reach around 59% by 2030, which the data giant says reflects Italy’s commitment to enhancing its renewable energy infrastructure.
Sudeshna outlines key factors have contributed to this shift. As well as conflict in Eastern Europe, a severe drought in 2022 significantly impacted Italy’s power market.
She continued: “Hydropower generation decreased from 31.2TWh in 2021 to 13.7TWh in 2022. In the absence of nuclear power, the country increased its thermal power generation by 8.4%, rising from 163.4TWh in 2021 to 177.1TWh in 2022. Additionally, electricity imports reached a total of 47.4 TWh.”
In light of this, Italy revised its renewable energy generation objective in 2023, setting a new target of achieving 65% by 2030.
Sudeshna said: “The upgrade of renewable targets should also come up with robust measures and a clear roadmap with definitive objectives to achieve them and overcome its dependency on natural gas and electricity imports.”
GlobalData’s research shows that through these strategic initiatives and commitments, Italy is positioning itself as a leader in renewable energy, ensuring energy security and sustainability for the future of the country, its businesses and citizens.
This transition underscores the importance of a robust and resilient energy infrastructure, crucial for mitigating the risks associated with over-reliance on fossil fuel imports and addressing the impacts of climate change.
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