Italy’s wind & solar capacity set for significant growth by 2030, says S&P Global Ratings

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Over the next few years, Italy’s gas-dominated power market will transform as wind and solar capacity catches up and coal-fired assets are phased out. This is according to a new S&P Global Ratings report analysing Italy’s National Energy Strategy, which aims to increase the share of renewable sources to 30% by 2030.

  • Wind and solar capacity are forecast to grow significantly by 2030, with predicted increases from 11GW (2018) to 18.4GW (2030) and 21GW (2018) to 50.9GW (2030) respectively, and a coal phaseout plan translates to a reduction of 2GW in coal capacity by 2024 and a further 6GW in 2025;
  • S&P Global Ratings expects Italy to retain its position as the premium market in terms of power prices in Western Europe to 2025 (partly thanks to the country’s large gas capacity);
  • Auctions for about 7GW of renewable power plants are expected between 2019-2021 under the form of contracts for difference, which will insulate new wind and solar photovoltaic (PV) plants from merchant risk and support the predictability of long-term project cash flows. Download the report..