Italy Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Italy Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for solar energy in Italy is expected to grow at a CAGR of more than 7% during the forecast period of 2020 – 2025. Factors such as supportive government policies and efforts to meet power demand using renewable energy sources are expected to drive the market studied in the coming years. With the advancement in technology and increasing competition in the market the installation and operational cost has been estimated as 2.34US cents/kWh in February 2018, which, in turn, can also drive the solar energy market in the country. On the contrary, the high initial investment for the installation of solar panels and the COVID-19 outbreak are expected to restrain the growth of solar energy.

Key Highlights

• With more than 20000 MW of PV capacity of Italy in 2019, the installation of solar photovoltaic panels is expected to grow in comparison to other solar power harnessing technologies like Concentrated Solar Power (CSP).
• In July 2019, Eni New Energy SpA announced the construction of Italy’s first offshore solar project with a capacity of 14 MW. With this project, a new segment for the growth of solar power will be explored that will increase the solar share in Italy. Therefore, offshore areas are expected to provide an ample amount of opportunity for the players involved in the market in the near future.
• With introduction of National Energy Strategy for 2020-2030, Italy is aiming to increase the renewable share to 28% in power consumption and to 55% in electricity consumption by 2030. Solar power is going to be one of the major sectors in achieving this ambitious goal.

Key Market TrendsIncreasing Deployment of Solar PV to Drive the Market

• Photovoltaics (PVs) are arrays of cells containing a solar photovoltaic material that converts solar radiation or energy from the sun into direct current electricity. They consist of a variety of semiconductors, usually silicon and highly conductive wire, to reduce any current loss, which makes them expensive. But the operational cost is so low that they are expected to further decline in the coming years.
• Italy itself has achieved more than 20,100 MW of PV installation by December 2018, but the growth rate has fallen since 2013 with less than 500 MW of annual capacity additions, which is creating doubts about whether the country will be able to reach its 2030 goal.
• Italy is leaping to explore the offshore solar potential in the forecast period. In July 2019, Eni New Energy SpA announced the building of Italy’s first offshore solar project with a capacity of 14 MW, which will open new possibilities for solar market growth.
• Due to a decrease in prices of residential photovoltaic systems from EUR 3.6 per watt in 2011 to EUR 1.41 per watt in 2018, the demand for PV systems has increased in Italian households, driving the solar market further.
• Observing the ongoing project developments in PV solar panels, they are going to hold a significant market in energy sector of Italy and going to show a significant growth in forecast period.

Upcoming Projects And Government Policies

• With Italy’s National Energy Strategy for 2030, Italy is aiming to increase the PV market share to more than 50 GW by 2030. If achieved, it will increase solar share in renewable significantly.
• The current pace of solar power growth in Italy makes it difficult to achieve the 2030 goal. Lack of subsidies and large-scale investments is making it about impossible, which is a serious challenge ahead of Italy in the forecast period.
• Seven auctions are expected in the period of 2019-2021 for different renewable projects. The government is trying to remove market risks by ensuring unitary tariff; a reference price for larger plants that is closer to the market price than under previous incentive plans.
• With ongoing steps of the Italy Government and their future policies, the solar market is expected to grow at a significant rate in the coming years.

Competitive Landscape

The Italy solar energy market is fragmented. Some of the major companies include Gruppo STG S.r.l, Sonnedix Power Holdings Ltd, EF Solare Italia SpA, SunPower Corporation, and Enel SpA.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Gruppo STG S.r.l
Sonnedix Power Holdings Ltd
SunPower Corporation
SunEdison Inc
Enel SpA
Peimar S.r.l.
EF Solare Italia SpA

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