EU energy report, the italian paradox: leader in clean-tech production, but still too dependent on fossil fuels

Brussels – It’s not a failing grade, but it’s not a passing grade either. Italy is one of those students with all the right cards but who do not commit themselves. This picture emerges from the chapter devoted to Rome in the report on the State of the Energy Union 2024, adopted today (Sept. 11) by the European Commission. The contradiction is glaring: leading market in clean technologies, from which more than one-fifth of photovoltaic panels in European buildings come, but with an energy mix “dominated by fossil fuels”.

The figure for the composition of Italy’s energy portfolio is without appeal: fossil sources account for 80 per cent of the mix, well above the European average of 69 per cent. Only the remaining 20 per cent is covered by clean energies. What is more, the latter share has been declining slightly since 2020. Even worse, compared to other member countries, if one looks only at the sources used for power generation: fossil fuels account for 63.3 per cent, compared to an EU average of 38.6 per cent.

At the same time, the European Commission’s analysis confirms Italy’s leading role in the clean technology market, driven by the “substantial number” of solar photovoltaic and wind power plants. One number above all promotes Rome: 22 per cent of the photovoltaics integrated into buildings across Europe comes from Italy, which ranks among the top two largest producers in the EU for panels, foils, and modules. This is a merit that takes on greater value in light of what was also indicated in Mario Draghi’s European Competitiveness Report, which stressed the leading role that the EU can play in clean tech in the world.

A note of merit is also the diversification of natural gas suppliers and the cut from Russian gas: in 2023, Italy counted 19 natural gas suppliers, up from 14 in 2021. Algeria ranked first, with 37 per cent of total gas imports.

The EU then probed one of Italy’s exposed nerves, the energy performance of its housing stock. The available figure is for 2022, in which the final energy consumption of residential buildings decreased by 5 per cent. But in 2023, 4.1 per cent of the population had difficulty paying their utility bills, and 9.5 per cent failed to adequately heat their homes in the winter period.

The conclusion is a slap on the hands of the Italian government: “It is important to increase the rate and quality of renovation of buildings, particularly those with the worst energy performance.” Brussels pulls straight on the’Green Homes’ directive, particularly disliked by Italy. But it applies to everyone: “Energy efficiency efforts will have to go a step further to reach the target of reducing final energy consumption by 11.7 per cent by 2030″, reads the document.