Summary

The Italian wind energy market is expected to register a CAGR of more than 3.9% during the forecast period. Italy was one of the worst-hit countries with the outbreak of COVID-19 in Q1 2020. Although the COVID-19 pandemic has delayed several renewable energy projects during Q1 2020, a series of renewable energy auctions coupled with increasing investments and financial support from the government and international financial institutions are expected to drive the wind energy market in Italy during the forecast period. Also, the policy to phase out coal-based power generation in the country is likely to create a huge demand-supply gap of electricity, which would require augmentation of power infrastructure pertaining to contemporary technologies, i.e., wind. The declining cost of wind power is expected to aid its adoption in the coming years. Hence, the market is expected to witness significant growth in the coming years. In addition, factors like increasing demand for renewable energy and electricity, rising investments in wind farms, new wind projects, and the declining cost of wind power drive the wind energy market. However, the increasing adoption of alternate clean power sources such as solar is likely to hinder the growth of the wind energy market in the coming years.

Key Highlights
Increasing deployment in the onshore wind is expected to drive the wind energy market in Italy during the forecast period.
According to the national energy and climate plan (NECP), Italy has set a target of contributing 30% to the 2030 European Union (EU) renewable energy target, aiming for greenhouse gas emissions reduction. This, in turn, is expected to have a significant increase in wind power capacity share in the country's energy mix, which is likely to provide an opportunity for growth in the deployment of wind energy in the coming future.
Solar energy is likely to hinder the growth of the Italian wind market over the forecast period.


Key Market Trends

Increasing Deployment in the Onshore Wind Energy is Expected to Drive the Market


The country’s demand for electrical energy is expected to be registered at high growth rates. As demand for energy is rising, Italy is turning toward adopting renewable energy as it can provide clean energy. The adoption of onshore wind energy along with higher wind potential and technology attracts the companies for high investments and thus, boosts the wind portfolio of the country.
Italy is the fifth country in terms of cumulative installations in Europe, with 10758 MW of wind energy installed in 2019. Wind power already supplied around 7% of Italy's power demand annually in 2019. Italy installed 456 new onshore wind power capacity in 2019. Furthermore, wind-generated electricity accounted for 20.1 TWh in 2019, corresponding to about 29% of the country’s total energy demand from renewables.
Italy’s wind industry is heavily concentrated in the south and on its islands due to wind resource availability. The country's wind portfolio comprises many onshore wind farm projects which are under construction. For instance, in January 2021, Enel Green Power has begun construction of the Castelmauro wind farm in Molise. The wind farm consists of seven wind turbines of 4.2 MW each, for a total capacity of 29.4 MW, and it is expected to be in operation by the end of 2021.
Also, in August 2020, Enel Green Power has started construction on the Partanna wind farm in Sicily, Italy. The wind farm consists of six 2.4 MW wind turbines, with a total capacity of 14.4 MW, and it is expected t produce around 40 GWh/year. The wind farm is scheduled to become fully operational in April 2021.
Hence, onshore wind energy is expected to drive the market during the forecast period by location of deployment, owing to the rising demand for clean energy in the country and upcoming onshore wind projects.


Solar Energy is Likely to Hinder the Growth of the Market


Italy is one of the leading countries for the production of solar energy. Italy has vast solar energy potential. Total solar radiation ranges from 3.6 kWh per square meter per day in the Po river plain area to 4.7 kWh per square meter per day in Central-Southern Italy to 5.4 kWh per square meter per day in Sicily.
At the end of 2019, the renewable energy generation by solar has reached 24.3 TWh with a higher growth rate by the usage of the country’s abundant solar resources with newer technology.
The major driving factor in the Italian PV market has been solar rooftops and solar installation projects coming in the future. For instance, in 2020, the Spanish utility-scale solar plants developer Powertis unveiled plans to develop a portfolio of 500MW utility-scale solar photovoltaic (PV) projects in Italy.
Moreover, 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 in turn, is likely to provide new possibilities for solar market growth.
The Italian solar PV covers 7.7% of the national energy demand, with an installed capacity of 20906 MW in 2019. Italy deployed around 792 MW of solar generation capacity in 2019. Furthermore, according to the National Energy and Climate Plan, solar capacity is forecast to increase to around 51,200 MW by 2030. Hence, solar energy installation ought to increase during the forecast period and is likely to hinder the market.


Competitive Landscape

The Italian wind energy market is moderately consolidated. Some of the major key players in this market include ERG SpA, Siemens Gamesa Renewable Energy SA, Enel Green Power SpA, Vestas Wind Systems A/S, and EDP Renovaveis S/A.

Additional Benefits:

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

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