Italy has awarded more than 1.1 gigawatts (GW) of capacity to 88 projects in its first solar auction restricted to installations using non-Chinese equipment. The auction set an average price of €66.38 per megawatt hour, reflecting growing interest in locally sourced renewable infrastructure.
According to Italy’s electricity services agency (GSE), the tariff is about 17% higher than the average achieved in an earlier renewable energy auction this year, which placed no limits on the origin of equipment. The new round marks a significant policy shift aligning with the European Union’s Net-Zero Industry Act, which seeks to reduce dependence on low-cost components from China.
EU Push for Energy Independence
The auction is one of the first in Europe to apply non-price criteria tied to the Net-Zero Industry Act, an EU initiative aimed at strengthening domestic manufacturing and securing energy supply chains. Currently, over 95% of solar modules installed across the bloc are imported, with China supplying roughly 94% of modules and cells in 2023, according to consultancy Green Horse Advisory.
This diversification drive is seen as crucial for Europe’s energy transition and industrial resilience. By incentivising solar projects using alternative sources, Italy hopes to encourage greater regional production and innovation within the renewable sector.
Major Developers Among Auction Winners
The list of successful bidders includes Enel Green Power (ENEI.MI), J.P. Morgan-backed Sonnedix, and KKR-supported ContourGlobal. “This is a strong result for the Italian system and for energy consumers,” said Mario Volpe, Representative Director for Italy at Sonnedix.
Volpe noted that Italy’s recent renewable and battery auctions are attracting around €10 billion in investment, with many projects now advancing to the construction phase. Under current regulations, developers must bring new plants online within 36 months.
Broader Renewable Expansion
Including the latest auction and another completed in early December for ordinary solar and wind plants, Italy has now allocated nearly 9 GW of renewable capacity.
“These schemes reduce curtailment risk, bring affordable and stable capacity into the system, and lower the cost of capital for new clean energy investments,” said Paola Agrati, Country Manager Italy at ContourGlobal.
The outcome reinforces Italy’s commitment to diversifying its energy portfolio and strengthening domestic clean-energy supply chains, a key step in the EU’s broader effort to secure strategic autonomy in renewables.
(with inputs from Reuters)
