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Italy increases solar, wind targets in new NECP draft

  • : Electricity
  • 23/07/03

The Italian government has doubled its 2030 target for solar photovoltaic (PV) capacity and substantially increased its objectives for wind capacity, according to its revised National Energy and Climate Plan (NECP) document seen by Argus.

Italy hopes to have 131.3GW of renewable generation assets installed by the end of the decade, up from a target of 95.2GW in the previous NECP published in 2019. The new target for solar PV was revised to 79.9GW, up by more than 50pc from a previous target of 52GW — the largest upward revision of any renewable source.

Rome is also now targeting 28.1GW of wind against a previous 19.3GW, and 1GW of geothermal compared with a previous goal of 950MW. The target for hydropower capacity — excluding pumped storage — remained unchanged from a previous 19.2GW owing to the technology already being "largely exploited", according to the document. Projections for capacity from biofuels were revised down from a previous 3.8GW to 3.1GW as Italy plans to gradually move away from biofuels at the end of the current incentive period.

The renewable target, if met, would mean that 40.5pc of Italy's overall energy consumption would be covered by renewable technologies in 2030, up from the previous target of 30pc. In particular, 65pc of Italy's power-sector consumption would be met by renewables against a previous target of 55pc, while the renewable share of heating-sector consumption would increase to 36.7pc from 33.9pc in the 2019 plan. And about 30.7pc energy consumption in the transport sector would be covered by renewables against a previous target of 22pc.

Italy's current installed capacity from renewable sources stands at 65.1GW, less than half of the new NECP target. Solar — including agri-PV — constitutes the single-largest technology in the country's renewable mix at 26.5GW, but stands at only a third of the country's 2030 targets.

The expansion in Italian solar PV capacity has been slow owing to lengthy authorisation processes, with an average of less than 1GW added each year since 2014, data from Italian grid operator Terna show. Yearly solar additions quickened to 2GW last year and 1.4GW in January-April 2023 owing to legislation introduced in April 2022 aimed at simplifying authorisations for projects of up to 20MW, but the recent repeal of the "superbonus 110pc" credit scheme for small-scale PV systems may slow uptake once more.

The draft plan also confirms that Italy will decommission its 6GW coal-fired fleet by 2025, with the exception of Czech EPH's 600MW Fiume Santo plant on the island of Sardinia, whose conversion to a 1GW renewable complex is set to coincide with the development of Terna's 2GW Tyrrhenian link.

Italy formalised its 2030 target for cross-border interconnection capacity, aiming for a 1.9GW increase from a current 6GW with the completion of the 600MW Italy-Tunisia interconnector, a second 500MW Italy-Greece cable and a new 300MW interconnection with Austria. Cross-zonal capacity is planned to increase from a current 16GW to 30GW by 2030, particularly from the central-south to the central-north zones and between Sardinia, Sicily and the mainland.

The current draft revision of Italy's NECP comes after a cross-sector and public consultation and has been lodged with Brussels. The definitive revision of Italy's NECP must be submitted to the European Commission by 30 June 2024.


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New German climate minister stresses nature angle


25/05/07
25/05/07

New German climate minister stresses nature angle

Berlin, 7 May (Argus) — Germany's new federal minister for the environment, climate action, nature conservation and nuclear safety today stressed the importance of "healthy nature" to protect the climate, and of renewable energies and "innovative" technologies to reduce carbon emissions in Germany. Environment minister Carsten Schneider, of the co-ruling left-of-centre SPD party, was sworn in on Tuesday evening with his cabinet colleagues. Schneider said he is looking forward to "driving forward climate action in the coming years, and to promoting the preservation and improvement of our natural resources in nature and the environment, for soil, water and air". Schneider said it is "good and right" to once again have national and international climate action, along with nature conservation and environmental protection, bundled in the environment ministry. Germany's last government split the climate dossier between the economy ministry, which was given the climate action portfolio, and the foreign ministry, which dealt with international climate policy. Previous economy minister Robert Habeck of the Green party last month criticised the decision to exclude climate action from the economy ministry, emphasising the "interlocking" between climate action, industry and energy policy. Schneider today underlined the crucial importance of "ambitious marine protection", and of continuing the previous ministry's natural climate protection action programme to boost the "important" ecosystems in forests, moors and bodies of water. The ministry will support cities and municipalities on nature conservation and climate adaptation, he said. Schneider made no mention of carbon markets or emissions trading systems. Schneider, the former special envoy for Germany's eastern states, is a budget expert with no climate or environment background. His permanent junior minister is Jochen Flasbarth, former permanent junior minister at the development ministry and a permanent junior minister at the environment ministry between 2013-21, at a time when the environment minister was responsible for climate policy. Flasbarth was involved in international climate negotiations, including the UN Cop 21 climate summit in Paris in 2015. Flasbarth is also a former president of federal environment office UBA. Flasbarth as junior development minister urged richer developing countries such as China or Saudi Arabia to contribute more to international climate finance . By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia's AGL to expand Kwinana power station


25/05/06
25/05/06

Australia's AGL to expand Kwinana power station

Sydney, 6 May (Argus) — Australian utility AGL will expand the capacity of its gas-fired Kwinana swift power station (KSPS) in Western Australia (WA) by 250 MW by 2029, according to plans submitted to WA's Environmental Protection Authority (EPA) on 2 May. AGL plans to construct a second stage of KSPS called K2. K2 will increase capacity to 370 MW from 120 MW currently, with up to four new gas-powered turbine units at the Kwinana site 40km south of Perth. Construction of the gas peaker is set to begin in 2026, and the power station will be operational from 2029. The new generators will run until 2058, according to AGL's project report. K2 will connect to the Southwest Interconnected System (SWIS) south of Perth and aims to support AGL and WA's transition to renewable energy. AGL aims to deliver 5.4 GW of renewable capacity by the end of 2030 and 12 GW by 2036, 300 MW of which has been completed through the Torrens Island battery and Broken Hill battery. Upper estimates of fuel supply are around 50 TJ/d (1.3mn m³/d), depending on operating hours, according to AGL. AGL did not disclose gas and diesel supply. AGL expects scope 1 CO2 emissions to be 5.8mn t over the project's life, while scope 3 emissions will reach 688,000t by 2058, according to the project application. Yearly emissions will decrease to meet WA's 2050 net zero target. AGL's submission came just days before Australia's Labor party was re-elected , reinforcing a focus on renewable energy. The WA government in 2023 announced further investment of A$2.8bn ($1.8bn) for its transition to renewable energy, which includes funding for large scale battery storage systems in Collie and Kwinana. WA's gas consumption is predicted to overtake supply from 2028, according to the Australian Energy Market Operator's (Aemo) 2024 outlook. New gas projects including the Scarborough energy project , the West Erregulla project , the Lockyer Gas project and the Waitsia stage two project will meet demand in 2027 but there is long-term uncertainty as the state transitions to renewable energy. Aemo introduced a WA reform program in 2023 including an energy transition strategy. This transition includes closing down state-owned coal-fired power stations by 2030, which currently account for 30pc of the grid supply in southwest WA. By Susannah Cornford Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia's Coalition eyes power, resource funding cuts


25/05/02
25/05/02

Australia's Coalition eyes power, resource funding cuts

Sydney, 2 May (Argus) — Australia's federal Coalition opposition has announced it will cut key energy rebates and resource sector subsidies, if elected on 3 May, to reduce forecast future budget deficits. The Peter Dutton-led opposition will cut programs, including the Labor government's A$20bn ($12.8bn) Rewiring the Nation transmission plan, and the A$15bn National Reconstruction Fund aimed at underwriting green manufacturing using domestic minerals. It will also unwind electric vehicle tax concessions to save A$3.2bn, and cancel planned production tax credits for critical minerals processing and green hydrogen estimated to cost A$14.7bn. Combined savings measures will improve the budget's position by A$13.9bn over the four years to 2028-29, the Coalition said on 1 May, cutting debt by A$40bn during the same timeframe. The announcement comes as opinion polls show Australia's next federal government is likely to force one of the two major parties into minority, after a campaign where cost-of-living relief promises have trumped economic reform policy. The centre-left Labor party is more likely than the conservative Coalition to form government at the 3 May poll. It holds a thin majority of just three seats in parliament's main chamber, the House of Representatives, meaning a swing against it would force it to deal with minor parties such as the Greens and independent groupings. Promising a stable government, as Australia emerged from Covid-19, Labor had benefited from a resources boom as Russia's invasion of Ukraine led LNG and coal receipts to skyrocket and China's emergence from lockdowns revitalised its demand for iron ore, which jointly form the nation's main commodity exports. But as markets adjust to a period of protectionist trade policy and predictions of a slowdown in global growth abound, economists have criticised the major parties' reluctance to embrace major reform on areas such as taxation, while continuing to spend at elevated levels post-pandemic. Australia's resource and energy commodity exports are forecast to fall to A$387bn in the fiscal year to 30 June 2025 from A$415bn in 2023–24. The Office of the Chief Economist is predicting further falls over the next five years, reaching A$343bn in 2029-30, lowering expected government revenue from company tax and royalties. Gas The Coalition has pledged a domestic reservation scheme for the east coast, forcing 50-100PJ (1.34bn-2.68bn m³/yr) into the grid by penalising spot LNG cargoes. Australia's upstream lobby has opposed this, but rapidly declining reserves offshore Victoria state mean gas may need to be imported to the nation's south, depending on the success of electrification efforts and an uncertain timeline for coal-fired power retirements. Labor has resisted such further gas interventions , but it is unclear how it will reverse a trend of rising gas prices and diminishing domestic supply, despite releasing a future gas plan last year. The party is promising 82pc renewables nationally by 2030, meaning it will have to nearly double the 2025 year-to-date figure of 42pc. This could require 15GW of gas-fired capacity by 2050 to firm the grid. On environmental policy, narrowing polls mean Labor's likely partners in government could be the anti-fossil fuel Greens and climate-focused independents — just some of the present crossbench of 16 out of a parliament of 151. The crossbench may drive a climate trigger requirement in any changes to environmental assessments, which could rule out new or brownfield coal and gas projects. Coal has been conspicuously absent from policy debates, but Labor has criticised the Coalition's nuclear energy policy as expensive and unproven, while the Coalition has said Labor's renewables-led grid would be unstable and costly because of new transmission requirements. The impact of the US tariff shock that dominated opening days of the month-long election campaign remains unclear. Unlike Canada, Australia is yet to be directly targeted by US president Trump's rhetoric on trade balances and barriers. But the global unease that has set in could assist Labor's prime minister Anthony Albanese, as he presents an image of continuity in an uncertain world economy. Australia's main exposure to Trump tariffs is via China, its largest trading partner and destination for about 35pc of exports, including metal concentrates, ores, coal and LNG. A downturn in the world's largest manufacturer would spell difficult times ahead for Australia, as it grapples with balancing its budget in a normalising commodity market. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil's energy transition spending drops in 2024


25/04/30
25/04/30

Brazil's energy transition spending drops in 2024

Sao Paulo, 30 April (Argus) — Brazil's mines and energy ministry's (MME) energy transition spending shrank by 83pc in 2024 from the prior year, while resources for fossil fuel incentives remained unchanged, according to the institute of socioeconomic studies Inesc. The MME's energy transition budget was R141,413 ($24,980) in 2024, down from R835,237 in the year prior. MME had only two energy transition-oriented projects under its umbrella last year: biofuels industry studies and renewable power incentives, which represented a combined 0.002pc of its total R7bn budget. Still, despite available resources, MME did not approve any projects for renewable power incentives. It also only used 50pc of its budget for biofuel studies, Inesc said. Even as supply from non-conventional power sources advances , most spending in Brazil's grid revamp — including enhancements to better integrate solar and wind generation — comes from charges paid by consumers through power tariffs, Inesc said. Diverging energy spending Brazil's federal government also cut its energy transition budget for 2025 by 17pc from last year and created a new energy transition program that also pushes for increased fossil fuel usage. The country's energy transition budget for 2025 is R3.64bn, down from R4.44bn in 2024. The new program — also under MME's umbrella — has a budget of around R10mn, with more than half of it destined to studies related to the oil and natural gas industry, Inesc said. A second MME program — which invests in studies in the oil, natural gas, products and biofuels sectors — has an approved budget of R53.1mn. The science and technology ministry is the only in Brazil that increased its energy transition spending for 2025, with R3.03bn approved, a near threefold hike from R800mn in 2024. Spending will focus on the domestic industry sector's energy transition, Inesc said. Climate activists have criticized Brazil for not planning to phase out fossil fuels before, including criticisms to the first letter written by the UN Cop 30 summit's president. The country will hold the summit in November in northern Para state. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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