The Italian government has approved a package of more than 14 billion euros for the energy transition , which includes investments to develop 3 GW of new solar photovoltaic capacity , strengthen hydroelectric generation, boost biomethane and reduce electricity costs for the productive sector.
The initiative is part of the 2027 Budget Bill , approved on October 28 by the Council of Ministers, and includes 1.2 billion euros for new solar projects , 800 million to recover the capacity of hydroelectric reservoirs and another 700 million in subsidies for biomethane installations.
These measures are complemented by 2.5 billion euros for energy-intensive companies and 3.53 billion euros for non-energy-intensive small and medium-sized enterprises , with the aim of reducing supply costs and promoting investments linked to decarbonization and the incorporation of new renewable capacity.
The funds come from the fiscal flexibility enabled by the European Union through the so-called national safeguard clause , which allows for an expansion of public spending to address needs related to energy and security of supply.
One of the central instruments will be the Energy Release mechanism, aimed at electricity-intensive industrial consumers, which will incorporate a new modality for SMEs, with an announced allocation of 1 billion euros .
In the renewable energy sector, photovoltaic financing aims to accelerate the incorporation of domestic generation, while resources allocated to the hydroelectric sector are intended to recover water storage capacity in reservoirs.
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Meanwhile, the biomethane program will combine investment subsidies with production incentives, seeking to expand the availability of renewable gas and reduce the costs associated with the European emissions trading scheme (ETS).
Gilberto Pichetto Fratin, Italy's Minister of Environment and Energy Security , stated that the goal is to combine environmental sustainability, energy security, and industrial competitiveness through investments that will increase national production and generate benefits for businesses and consumers.
The project also includes €650 million to improve the energy efficiency of approximately 700 public schools , with grants that can cover up to 100% of the investment. In addition, €600 million will be allocated to hospitals and healthcare facilities, and €250 million to universities, research centers, sports facilities, and institutions for artistic and musical training.
In railway infrastructure, more than 5 billion euros are planned to strengthen safety, modernize facilities and improve the efficiency of the network.
The funding for the budget maneuver will also include an additional contribution of approximately 700 million euros from the energy sector .
In general terms, the Italian budget for 2027 will mobilize around 26 billion euros , the Executive reported after the ministerial meeting.
However, the energy measures still need to go through parliamentary procedures , so the amounts, implementation instruments and conditions for accessing the incentives could be modified before their final approval.
By Emilia Lardizabal
By Florencia Guglielmetti
