Italy faces the consequences of Meloni's halted green energy transition.

Copenhagen Infrastructure Partners, a Danish company interested in investing in Italian offshore wind farms, is growing frustrated. Two years after Italy's 2024 law promised incentives for developers to establish offshore wind capacity, the government has yet to set a timeline for the auctions it committed to holding by 2028.

This delay highlights a hesitance to transition from fossil fuels amidst a complex and polarized global debate that contrasts clean energy advocates with certain governments and corporations. U.S. President Donald Trump has been a prominent advocate for the continued use of oil and gas. For Italian families and businesses, the strain is significant due to rising fossil fuel prices since the U.S.-Israeli airstrikes marked the start of the Iran war in late February. Italy's heavy reliance on imported natural gas exacerbates the situation.

Michele Schiavone, the Italian country manager for Copenhagen Infrastructure Partners' offshore division, indicated that Rome's indecision regarding offshore wind could jeopardize a sector vital to the country's future energy security. He remarked, "The government's silence is not just holding us back, it is regressing us. It's a damaging own-goal."

RELIANCE ON GAS INCREASES ELECTRICITY COSTS

Gas, which is pricier than renewable sources, constitutes nearly half of Italy's electricity generation—the highest share in the European Union, according to 2025 data from global energy think tanks Ember and the Energy Institute. In comparison, Spain relies on gas for around 20% of its production, Germany for 17%, and France, with its focus on nuclear energy, for just 3%.

As the EU's largest importer of liquefied natural gas through the Gulf, where Iran's effective closure of the Strait of Hormuz has led to significant energy supply disruptions, Italy could have increased its commitment to renewable energy. Instead, it opted to seek new gas suppliers, mirroring its response after Russia's 2022 invasion of Ukraine. Riccardo Barbieri, director general at Italy's Treasury, commented that the current energy crisis is partly due to past failures in adopting the right policies and investments. Between 2020 and 2024, the share of renewable sources—primarily solar, wind, and hydroelectric—in Italy's power output increased only slightly to 41%, while other countries saw much larger gains.

ITALY'S WAR ON RENEWABLES

Economists point to bureaucracy, regional government resistance, the influence of powerful energy interests, and Prime Minister Giorgia Meloni's opposition to the green transition as reasons for Italy's lagging progress. "In recent years we have waged a war on renewables," noted Enrico Giovannini, former infrastructure minister and head of the sustainable development think tank ASviS. He criticized politicians and business leaders who previously argued against accelerating renewable efforts, now lamenting the surge in energy costs linked to excessive fossil fuel reliance.

Energy Minister Gilberto Pichetto Fratin identified local opposition as the primary challenge, citing NIMBY (not in my back yard) sentiments and conflicts between his Environment ministry and the Culture ministry over approval processes. Meloni, who assumed office in 2022, has referred to the ecological transition as an "ideological transition" rather than a scientific one. During her administration, the portion of EU post-COVID-19 funds allocated to green initiatives fell from 39.5% to 37.1%, just above the EU's minimum requirement.

Meloni has also suggested compensating gas-fired power plants for their costs under the EU's Emission Trading Scheme, which requires polluters to pay for their carbon emissions, drawing criticism from environmental advocates for promoting continued fossil fuel dependence. Recently, legislation was passed to extend the closure timeline for Italy's coal-fired plants by 13 years to 2038.

MELONI SEEKS EU BUDGET FLEXIBILITY TO ADDRESS ENERGY CRISIS

The government contends that Italy's medium-term energy challenges can be addressed by reviving nuclear power, a source Italians have rejected in two referendums over the past 40 years. While nuclear power is not carbon-free over its lifecycle, its generation is emissions-free. Nevertheless, many economists argue that the timeframe and cost make it impractical for Italy.

Giovannini suggested that the focus on nuclear reactors might serve as a distraction from necessary discussions about renewable energy. Among Italy's state-controlled energy firms, Eni has initiated several low-carbon projects, but its primary operations remain focused on oil and gas. Utility Enel shifted away from renewable development to emphasize low-risk, regulated ventures during the initial tenure of CEO Flavio Cattaneo, appointed three years ago.

Facing political challenges and a stagnant economy, Meloni has sought budget flexibility from the EU to assist companies and households with energy costs, although she has not yet succeeded. Meanwhile, Copenhagen Infrastructure Partners is still awaiting the offshore wind auctions necessary to launch an energy source in Italy that Schiavone claims could generate twice as much electricity as solar power per installed gigawatt and 1.5 times more than onshore wind. "We need the government, and the government needs us," he stated.