Homepage News Italy faces energy crisis as renewable projects stall

Italy faces energy crisis as renewable projects stall

Venice, Venedig, Italien, Italy

Italy is facing mounting criticism over delays to its renewable energy transition as soaring fossil fuel prices continue to hit households and businesses.

Industry leaders and economists say Prime Minister Giorgia Meloni’s government has moved too slowly on clean energy projects, leaving the country heavily exposed to global energy shocks, reports Reuters.

Energy costs rising

Italy remains one of Europe’s most gas-dependent economies, with natural gas accounting for nearly half of its electricity production, according to 2025 data cited by Reuters.

That reliance has become increasingly painful following disruptions to global energy markets linked to the conflict involving Iran earlier this year.

Unlike countries such as Spain and Germany, which rapidly expanded renewable energy generation in recent years, Italy’s progress has been comparatively limited.

Between 2020 and 2024, renewable energy’s share of Italian electricity production rose only slightly to 41%, far below increases seen elsewhere in Europe.

Offshore wind delays

Frustration is growing among foreign investors waiting for Italy to move forward with promised renewable energy projects.

Danish investment group Copenhagen Infrastructure Partners said Rome still has not announced auction plans for offshore wind projects despite legislation introduced in 2024.

Michele Schiavone, the company’s Italy country manager, warned the delays could damage the country’s long-term energy security.

“The silence is not just preventing us going forwards, it is taking us backwards,” he said, according to Reuters.

The company argues offshore wind could generate significantly more electricity than solar or onshore wind projects.

Political resistance

Critics blame Italy’s slow progress on bureaucracy, local political opposition, and skepticism toward the green transition within sections of the government.

Meloni has previously dismissed parts of the ecological transition agenda as ideological rather than scientific.

Her government has also reduced the proportion of EU recovery funds dedicated to green projects, though it still remains above the minimum threshold required by Brussels.

Meanwhile, parliament recently approved legislation delaying the permanent closure of Italy’s coal-fired plants until 2038.

Nuclear debate returns

The government argues that reviving nuclear energy could help solve Italy’s long-term energy challenges.

However, economists and energy analysts question whether nuclear projects could be delivered quickly enough or at a manageable cost.

Former infrastructure minister Enrico Giovannini suggested the focus on nuclear power risks distracting from renewable investment.

“I suspect all this talk about nuclear reactors may be a weapon of mass distraction to avoid discussing renewable energy,” he said.

As Italy struggles with a stagnant economy and rising energy bills, Meloni has also pressed the European Union for greater budget flexibility to support businesses and consumers.

Sources: Reuters, Eurostat, Ember, Energy Institute

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