Italy Power Market

Italy Power Market Overview:

The Italy power market size reached 136.80 GW in 2024. Looking forward, IMARC Group expects the market to reach 252.00 GW by 2033, exhibiting a growth rate (CAGR) of 6.30% during 2025-2033. The expansion of renewable energy, government initiatives and subsidies, integration of smart grid technologies, and upgradation of infrastructure represents some of the key factors driving the growth of the market.

Italy Power Market Trends:

Renewable Energy Expansion and Government Incentives

The growth of the power market in Italy is primarily attributed to the increase in the use of renewable energy sources and favorable government policies. Italy is steadily progressing to reach the emissions reductions and energy efficiency targets set in its National Energy and Climate Plan (NECP) for 2030. For instance, as per industry reports, the NECP aims for renewables to account for 34.2% of the transport sector’s gross final energy consumption by 2030. In line with this, Italy is committed to achieving carbon neutrality by 2050. This is supported by strong government policies and subsidies on solar, wind, and hydroelectric power to attract both domestic and foreign investors. This has been attributed to the availability of incentives, such as feed-in tariffs, tax credits, and grants, which have fostered the use of renewable energy technologies. These measures not only serve the purpose of cutting down the country’s carbon footprint, but also improve energy security and generate employment, leading to the continued growth of Italy’s power sector.

Technological Developments and Upgradation of Infrastructure

Technological advancements and substantial investments in infrastructure are the key drivers of growth in the Italian power market. Enel Green Power, a leading entity in renewable energy, announced that it will commence the construction of 1.6GW of battery storage projects in Italy this quarter, anticipating a significant surge in the country’s utility-scale market over the next three years. This construction phase is set to begin between April and June 2024. The integration of smart grid technologies and advancements in energy storage systems have substantially enhanced grid reliability and effectiveness. Italy recognizes the necessity to enhance its power infrastructure to support new renewable energy generation and manage the distribution of electricity. Advanced metering infrastructure (AMI) and demand response systems play a crucial role in efficient energy management and fostering consumer engagement in the energy market. In addition, advancements in energy efficiency and the application of digital technologies are critical for improving the efficiency of power supply to support business expansion and drive economic growth in Italy’s power sector.

Italy Power Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on generation source.

Generation Source Insights:

• Thermal
• Hydro
• Renewable
• Others

The report has provided a detailed breakup and analysis of the market based on the generation source. This includes thermal, hydro, renewable, and others.

Regional Insights:

• Northwest
• Northeast
• Central
• South
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Northwest, Northeast, Central, South, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Italy Power Market News:

• In July 2023, Iris Ceramica Group, a global leader in the production of high-end technical ceramic slabs, announced an agreement with Edison Next to create a new production plant in Castellarano, Reggio Emilia, based on green hydrogen produced from renewable energy.
• In March 2024, the Italian TSO, Terna, announced a substantial investment of up to €16.5 billion ($17.9 billion) to accelerate decarbonisation in Italy, based on the principle of twin transition in the field of digital and energy.

Italy Power Market Report Coverage:

Key Questions Answered in This Report:

• How has the Italy power market performed so far and how will it perform in the coming years?
• What is the breakup of the Italy power market on the basis of generation source?
• What is the breakup of the Italy power market on the basis of region?
• What are the various stages in the value chain of the Italy power market? 
• What are the key driving factors and challenges in the Italy power market?
• What is the structure of the Italy power market and who are the key players?
• What is the degree of competition in the Italy power market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Italy power market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Italy power market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Italy power industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.