'A scheme designed by the #regulator since 2004 allows some #Italian #gas plants, both combined-cycle #power #plants and open-cycle turbines, to receive a #capacity #payment. This is a state #subsidy that maintains them #artificially #profitable and distorts their exit from the market based on pure #fundamentals. '
🇮🇹 Italy relies excessively on #gas for power generation. Recent news from Italian TSO Terna suggests that change could be underway. In April 2024, IEEFA highlighted the excessive usage of gas in Italy's power generation sector (https://lnkd.in/e-9QSP5x). The findings of this study raised concerns that Italy was not moving away from gas, neither pipeline gas nor LNG, and that gas was an essential pillar in its energy roadmap. One of the drivers of gas usage in Italy is the support of gas plants by capacity payments. 🔍 Interestingly, the results of the capacity market auction for the year 2025 released by Terna have awarded little new capacity, out of which only 100 MW of gas-fired generation. No new gas plants have been awarded capacity payments. This news is not a game changer in the Italian market but might show that the country is slowly heading in the right direction to reduce its gas dependence. Read Terna's press release: https://lnkd.in/d4-ZpADn Jonathan Bruegel Ana Maria Jaller-Makarewicz