Legal Pathways to Coal Phase-Out in Italy in 2025

Abstract

This contribution aims to provide an in-depth outlook of the phase-out of coal-fired energy generation in Italy. In particular, this article analyzes the state-of-the-art with regard to both the current role of coal generation and the performance of the main legal and regulatory tools as implemented in Italy thus far to ensure the closure of all coal power plants by 2025 as announced in the Italian National Climate and Energy Plan. Based on existing data and scenarios on both electricity production and demand trends, this article unfolds the marginal role played by coal-fired generation in the Italian energy mix. In addition, this paper aims to highlight the outstanding technical uncertainties and regulatory hurdles in the way towards de-carbonization of energy generation in Italy. This paper argues that several remarkable improvements are needed in order to avoid over-generation (especially through natural gas), to upscale the penetration of renewable energy sources, and develop the necessary infrastructures to adequately deliver on the full phasing-out of coal within the expected timeframes.