The European Commission has approved Italy's €23 billion state aid program to boost electricity generation from renewable energy sources (RES), according to Report's European bureau, citing the commission.
The program will support the construction of wind farms, solar plants, hydropower facilities, and biogas units from wastewater. New projects are expected to deliver 37.15 GW of capacity, equal to about 48% of Italy's current renewable generation capacity.
According to the Commission, the scheme will help Italy reach its target of 39.4% RES share in final electricity consumption by 2030, while reducing electricity prices and the EU's dependence on imported energy carriers.
Support will be provided through 20-year two-way contracts for difference (CfDs): If market prices fall below the agreed tariff, the state will compensate producers. If prices rise above the tariff, companies will return the difference to the state.
The Commission noted that if electricity prices remain higher than forecast, actual budget costs could be significantly lower than the announced €23 billion.