In a contentious debate that threatens Italy's decarbonization ambitions, the country's rightwing coalition finds itself at odds over a proposed ban on installing solar panels on agricultural land. The rift, as revealed by draft decrees and government sources, underscores a significant challenge to Rome's commitment to ramp up renewable energy capacity.
Following the conclusion of a recent meeting of G7 energy ministers, Italy and its allies pledged to triple renewable energy capacity by 2030 and phase out coal-fired power plants by the mid-2020s. However, a draft decree attributed to Agricultural Minister Francesco Lollobrigida indicates a stance against utilizing agricultural land for photovoltaic systems, stating that such areas are deemed unfit for ground-mounted solar modules.
The proposed ban, forming part of a broader initiative to safeguard farming and fisheries, faces staunch opposition from Energy Minister Gilberto Pichetto Fratin, who aligns with national decarbonization efforts, according to government insiders. The clash is poised to come to a head during Monday's cabinet meeting.
A second draft hints at measures aimed at restricting agricultural land usage, indicating that the dispute remains unresolved. Neither ministry was available for immediate comment.
Italy's recent surge in renewable energy capacity, primarily driven by small-scale solar projects with wind ventures constituting a mere 8% of the new capacity, faces potential setbacks with limitations on solar installations. Analysts at Italian brokerage firm Equita warn that such restrictions could adversely affect energy companies like ERG and ALERION, both of which have ambitious growth targets in the solar sector.
Conversely, a slowdown in solar capacity development could benefit power generators such as Enel, A2A, and IREN, shielding them from price pressures amid accelerated solar energy adoption, as highlighted by Equita analysts.
The conflicting interests within Italy's coalition underscore the intricate balance between environmental objectives and economic considerations, posing a significant challenge to the nation's renewable energy trajectory.
