The EU Commission has approved a EUR23bn Italian state aid scheme that is projected to add 37.15 GW of new renewable electricity capacity across the country (European Commission press release, 08/06/2026). The scheme intends to support the construction of power generation installations using onshore wind, hydropower, solar power and sewage gas.
The 20-year support mechanism will utilize two-way contracts for difference (CfDs) based on strike prices. While funding will be allocated through competitive tenders, projects smaller than 1 MW will be eligible to access the scheme directly.
The initiative is expected to help the country meet its target of securing 39.4% of its gross final electricity consumption from renewables by 2030. In line with the EU's Clean Industrial Deal and REPowerEU plan, the aid scheme aims to lower electricity costs while curbing the Union's reliance on foreign energy.
According to Enerdata’s Global Energy Research, Italy’s renewable installed capacity as of 2025 was at 83.5 GW (including biomass), representing 59% of the country’s total capacity.
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