The acceleration of the renewable energy transition in Italy will require improvements in permitting, grid access, and system flexibility, GlobalData has said in a new analysis.
According to GlobalData’s report, Italy Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035, Italy is currently undergoing a ‘significant clean energy shift’, with solar the fastest-growing source of electricity generation capacity. This has been supported by government auctions and policy incentives, it noted.
‘Turning point’
“Italy is at a turning point: rising demand driven by electrification, industry, and urban cooling is converging with ambitious renewable and climate goals,” commented Attaurrahman Ojindaram Saibasan, power analyst at GlobalData.
“The speed and clarity of grid reforms, permitting streamlining, and investment in storage will decide whether Italy’s clean energy transition delivers on time.”
Policy and regulatory momentum around the energy transition is ‘accelerating’, GlobalData noted, with Italy’s National Energy and Climate Plan, the introduction of the FER X incentive scheme and strengthened capacity market mechanisms all supporting investment signals.
“Hybrid projects – solar plus storage or wind plus storage – are increasingly attractive, as they help mitigate grid constraints and curtailment risk,” Saibasan added. “However, regional zoning restrictions, heritage protection rules, and overlapping environmental assessments continue to slow progress in many renewable-rich zones.”
Electricity demand
According to GlobalData, electricity demand in Italy is projected to rise from approximately 292.2TWh in 2025 to around 311.1TWh by 2030, driven by increasing EV and heat pump adoption, higher cooling demand, and continued industrial and digital sector growth.
With this in mind, southern Italy and island regions are expected to face the greatest stress on the grid and connection infrastructure.
“For developers, utilities, and investors focused on solar PV, offshore wind, storage, and grid modernisation,” said Saibasan. “Italy offers substantial value. Success will depend on navigating policy uncertainty, securing firm offtake agreements, and staying ahead of operational and regulatory bottlenecks.” Read more here.
