Italy split on possible solar plant curbs that may jeopardise green goals

Erg SA

06/05/2024 11:36

By Giuseppe Fonte and Francesca Landini
       ROME, May 6 (Reuters) - Italy's rightwing coalition is
split over a possible ban on the installation of solar panels on
agricultural land, according to draft decrees and government
officials, a move that could jeopardise Rome's decarbonisation
goals.
    At the end of a meeting of G7 energy ministers last week,
Italy and its partners committed to triple installed renewable
energy capacity by 2030 and phase out coal-fired power plants in
the first half of the next decade.
    But a draft decree prepared by Agricultural Minister
Francesco Lollobrigida and seen by Reuters rules that "areas
classified as agricultural by municipal plans are unsuitable for
the installation of photovoltaic systems with modules placed on
the ground".
    The ban is part of a broader package of measures aimed at
protecting farming and fisheries.
    Lollobrigida's plans have however met resistance from Energy
Minister Gilberto Pichetto Fratin, who supports national efforts
to decarbonise, government officials said, adding the issue
would be discussed at Monday's 1530 GMT cabinet meeting.
    A separate draft includes references to "provisions aimed at
limiting use of agricultural land" without detailing them, a
signal that the dispute is still alive.
    Neither ministry was immediately available for comment.
    Italy last year added nearly 6 gigawatt (GW) in renewable
energy capacity, mainly through the development of small solar
plants, with wind projects accounting for only 8% of the new
green capacity.
    Limits on solar plants could negatively impact energy
companies including ERG  ERG.MI  and ALERION  ARN.MI , which 
have growth targets in the solar sector, financial analysts at
Italian broker Equita said.
    On the other hand, a slowdown in the development of solar
capacity could be positive for power generators including Enel
 ENEI.MI , A2A  A2.MI  and IREN  IREE.MI , which may suffer
pressure on prices if solar energy accelerates, the analysts
said.

 (Reporting by Giuseppe Fonte in Rome and Francesca Landini in
Milan; Editing by Nick Macfie)
 ((giuseppe.fonte@thomsonreuters.com; +390680307711;))