Executive Summary and Key Recommendations
Executive Summary
The Italian government has made significant progress in several sectors since the last IEA in-depth energy policy review in 2003. Notable achievements include the success of green and white certificate schemes and ongoing reforms in electricity and natural gas supply markets. However, numerous challenges persist, particularly in diversifying energy supply, reducing greenhouse gas emissions, and complying with Europe’s new climate and energy package.
Key Recommendations
- Diversify Energy Supply: Italy needs to reduce its reliance on fossil fuels and electricity imports, and decrease greenhouse gas emissions. A strategic plan for nuclear power should be developed.
- Comply with Climate and Energy Targets: The government must develop a comprehensive climate change strategy by 2020 to meet renewable energy and emissions targets.
- Develop Long-Term Energy Policy: A wide-ranging new law enacted in mid-2009 facilitates the development of a robust long-term energy policy. The government should collaborate with industry to create a long-term strategy for the energy sector.
Policy Analysis
General Energy Policy
- Country Overview: Italy has made significant progress in various sectors since the last IEA review in 2003.
- Economic Context: Italy's economy is heavily dependent on fossil fuels and imports electricity.
- Energy Supply and Demand: Italy faces challenges in diversifying its energy mix and reducing greenhouse gas emissions.
- Institutions: The government has implemented key policies such as green and white certificates.
- Security of Supply: The government aims to enhance energy security through market reforms and emergency response measures.
- Market Reform: Reforms in electricity and natural gas supply markets have been successful.
- Energy Taxes: Current tax structures need improvement to support sustainable energy policies.
Climate Change
- Overview: Italy recognizes the need to reduce greenhouse gas emissions and comply with EU climate and energy targets.
- Emissions Profile: Italy has significant emissions, primarily from electricity and heat generation.
- Climate Change Policy: The government plans to redevelop its nuclear power program and implement new legislation to facilitate long-term energy policy.
- Critique: The government needs to accelerate efforts to comply with new responsibilities and develop a comprehensive climate change strategy.
- Recommendations: Develop a long-term strategy for the energy sector and ensure effective implementation of new laws.
Energy Efficiency
- Overview: Italy has implemented policies and measures to improve energy efficiency across various sectors.
- Policies and Measures: Various policies and measures have been implemented to enhance energy efficiency.
- Sectoral Critiques: While progress has been made, there is room for improvement in cross-cutting measures.
- Recommendations: Strengthen cross-cutting measures and continue implementing policies to improve energy efficiency.
Sector Analysis
Renewable Energy
- Overview: Italy has a legal framework supporting renewable energy, but implementation faces challenges.
- Electricity Generation: Significant electricity is generated from renewables, but there is potential for further growth.
- Heat Generation: Heat generation from renewables is limited, with opportunities for expansion.
- Transport Fuels: Limited transport fuels from renewables, with potential for growth.
- Critique: Implementation of renewable energy policies needs improvement.
- Recommendations: Enhance legal frameworks and support implementation of renewable energy projects.
Electricity
- Overview: Italy's electricity market is regulated and structured to ensure security of supply.
- Supply and Demand: The market is designed to balance supply and demand effectively.
- Regulation: Effective regulation ensures fair competition and market stability.
- Critique: Further improvements are needed in market design and security of supply.
- Recommendations: Enhance market design and security measures.
Natural Gas
- Overview: Italy relies on natural gas imports, with significant infrastructure development needed.
- Supply and Demand: The market is designed to balance supply and demand, with emphasis on infrastructure development.
- Critique: Challenges remain in ensuring security of supply and developing natural gas networks.
- Recommendations: Strengthen natural gas networks and improve emergency response policies.
Oil
- Overview: Italy is heavily dependent on oil imports, with significant domestic refining capacity.
- Supply and Demand: The market is designed to balance supply and demand, with emphasis on emergency response policies.
- Critique: Challenges remain in ensuring security of supply and implementing emergency response measures.
- Recommendations: Enhance emergency response policies and improve market stability.
Coal
- Overview: Italy has limited coal resources, with no significant domestic production.
- Critique: Limited domestic coal resources pose challenges for energy security.
- Recommendations: Explore alternative energy sources to ensure energy security.
Overall, Italy faces significant challenges in diversifying its energy mix, reducing greenhouse gas emissions, and complying with EU climate and energy targets. The government needs to develop a comprehensive strategy and implement effective policies to address these challenges.