The balance of the Italian electrical system in the new supply-demand scenario

The evolution of the Italian electrical system must combine objectives of adequacy and security on one hand, and decarbonization, with the development of renewables and energy efficiency, on the other. Therefore, the entire system of generation, storage, and networks must be considered in light of the 2030 objectives, combining environmental and economic sustainability.
In a context where electricity demand remains weak and the electrification process is struggling, investments in renewables risk finding increasingly unfavorable market conditions for growth. Support policies remain crucial, both to have ever-increasing shares of renewables and to have flexible capacity and storage available.
Operators and investors must face new scenarios and uncertainties, where the risks of cannibalization of renewables are growing, and negative prices are also expected in Italy.
The system design must therefore aim to combine decarbonization objectives with balance, security, and cost-effectiveness of the system for all actors: producers, consumers, investors, and infrastructure managers.