The European Commission has approved a €23 billion Italian state aid scheme to support new renewable electricity projects.
The funding is intended to support the construction of power plants using onshore wind, solar power, hydropower and sewage gas, the Commission pointed out in a statement on Monday.
The projects are expected to add 37.15 gigawatts (GW) of renewable electricity capacity — roughly 48% of Italy’s current renewable energy source (RES) capacity.
Support will be provided through “two-way contracts for difference” (CfDs), a mechanism that tops up producers’ income when wholesale electricity prices fall below an agreed level and requires repayments when prices rise above it. The contracts will run for 20 years.
Most support will be allocated through a competitive bidding process in which applicants bid on the “strike price” they need for each project.
Renewable plants with a capacity below 1 megawatt (MW) will be able to access the scheme without bidding, with the strike price set by Italy’s energy regulator — the Autorità di regolazione per energia reti e ambiente.
Part of EU State aid framework for clean transition
The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF), adopted on 25 June 2025, which sets conditions for member states to grant certain types of support until 31 December 2025, the Commission said.
Italy’s €23 billion budget is based on market price estimates, and the Commission said the actual net support could be lower if electricity market prices are higher than expected.
The non-confidential version of the decision will be published under case number SA.115180 in the Commission’s State aid register once any confidentiality issues have been resolved.
“With this €23 billion scheme, Italy will support the production of renewable electricity from various technologies, such as onshore wind, solar or hydropower,” said Teresa Ribera, the Commission’s Executive Vice-President for Clean, Just and Competitive Transition.
