Renewable energy policies in Italy

Abstract

Italy has an important potential of renewable energy sources (RES), ranging from solar energy to hydro, geothermal, biomass and wind. This potential is largely untapped. Measures to promote the diffusion of RES in Italy have been taken by the central government and, lately, by regional governments. The trend has been from direct government intervention to market-oriented instruments (particularly tradable Green Certificates) passing through subsidies, assured take-up prices, and voluntary agreements. Removal of barriers to RES diffusion still has a long way to go. Useful lessons can be learned by examining successes and failures met with by the different measures. On the whole, the picture is a mixed one, with positive results having been achieved especially through the instrument of favourable assured take-up prices of electricity from RES which have been offered for a limited period of time; this system is now being replaced by a Green Certificate system, which has positive elements of originality as compared with similar schemes in other countries, but whose results it is too early to judge. In the last few years, wind energy and biomass (residues, wastes and biofuel) especially have grown rapidly. Solar water-heating has not taken off, despite favourable conditions. On the negative side are bureaucratic and institutional barriers (a common problem in an over-regulated country such as Italy), insufficient information to the public, decrease in funding of RES R&D and the minimal role played by the national industry. Conflicts – or at least, uncertainty in the division – of powers concerning energy between central and regional governments have also contributed to retarding progress.