23 billion euros, 37.15 GW - this is a large order from the European Union for Italy's green transformation. On June 8, 2026, the European Commission officially approved Italy's national aid plan to support its large-scale deployment of renewable energy. This is not only Italy's largest single energy investment plan to date, but also the most representative national practice under the framework of the EU Clean Industry Agreement.

The precise balance between government and market

The core mechanism of this plan is a two-way contract for difference, with a contract period of up to 20 years. The logic is not complicated: when the market electricity price is lower than the agreed execution price, the government compensates to ensure stable returns for investors; When the market electricity price is higher than the execution price, the project party will return excess profits to prevent excessive profits while protecting the public budget. 23 billion euros is based on the current electricity price ceiling, and if electricity prices rise in the future, actual government spending may significantly decrease.

In terms of admission design, the plan is divided into two paths based on scale: for large-scale projects with a capacity of over 1MW, competitive auctions will be conducted to bid at the lowest execution price; Small projects under 1MW can be directly applied for, and the execution price is set by the Energy Regulatory Bureau to lower the threshold and encourage distributed energy. The executing agency is the Italian Energy Services Authority, which will launch the first photovoltaic auction in 2026 and add two more in 2027. The total amount of photovoltaic and wind power auctions will reach 10GW and 16GW respectively.

The Energy Chess Game from 45GW to 82GW

This is not the first time Italy has obtained a green pass from the European Union. The FER II plan approved in 2024 has supported innovative technologies such as geothermal and offshore wind power, adding approximately 4.59 GW. This plan focuses on mature technologies such as onshore wind power, photovoltaics, hydropower, and biogas, complementing each other.

As of the end of March 2026, Italy's cumulative installed capacity of photovoltaics has reached nearly 45 GW, and with the addition of 37.15 GW this time, the installed capacity of renewable energy will approach 82 GW. Under the EU Fit for 55 framework, Italy has committed to renewable energy accounting for 39.4% of final electricity consumption by 2030, and the path to achieving this goal is clear. Keywords: energy investment plan, renewable energy

Behind the 23 billion euros is a system design that balances incentives and constraints. This move by Italy not only concerns its own energy security, but also provides a replicable policy sample for other EU member states.Editor/Cheng Liting