EU’s largest producer of gas-fired power generation
Italy becoming the EU’s largest gas-fired power producer has been driven by factors related to resource availability and gas infrastructure in the country, as well as government guidelines that have encouraged the utilisation of such plants.
The country’s natural gas infrastructure, including pipelines and storage facilities, is robust, allowing imports of gas and LNG.
The government has set some guidelines and directions that could be challenged since they legitimate gas as a transition fuel at the European level. A scheme designed by the regulator since 2004 allows some Italian gas plants, both combined-cycle power plants and open-cycle turbines, to receive a capacity payment. This is a state subsidy that maintains them artificially profitable and distorts their exit from the market based on pure fundamentals.
Prime Minister Giorgia Meloni aims to make Italy the EU’s main gas entry point, taking advantage of the energy crisis and reduced imports from Russia.
Has Italy lost its drive for renewables?
Italy’s energy capacity buildout shows a similarly confusing pattern as its power generation in 2023. Renewable capacity increased by 25% between 2021 and 2023; LNG capacity grew by 40% and is expected to continue rising.
Source link : https://ieefa.org/resources/italys-excessive-gas-fired-power-reliance-slows-renewables-buildout
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Publish date : 2024-04-29 03:00:00
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