The European Commission has approved, under EU State aid rules, an Italian scheme to support a total of 4590 MW of new capacity for electricity production from renewable energy sources. The scheme contributes to the EU’s strategic objectives relating to the European Green Deal, while helping to end dependence on Russian fossil fuels and fast forward the green transition.

The measure, which will run until 31 December 2028, will be financed through a levy included in the electricity bills of final consumers. Under the scheme, the aid will take the form of a two-way contract for difference for each kWh of electricity produced and fed into the grid, and will be paid for a duration equal to the useful life of the plants. The projects will be selected through a transparent and non-discriminatory bidding process.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This scheme enables Italy to support the production of renewable electricity from various technologies, including innovative ones. The measure helps Italy meet its emission reduction and electricity production targets. It will also contribute to achieving the European Green Deal objectives, while limiting possible distortions of competition.”