COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet Italy Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK Third Report on the State of the Energy Union
Date: 2017-11-23
Institutions: European Commission, Secretariat-General
Subjects: Italy, climate change policy, competitiveness, economic and social cohesion, energy cooperation, energy policy, innovation, investment, regional cooperation, single market

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.11.2017 SWD(2017) 399 final  COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet Italy  Accompanying the document  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK  Third Report on the State of the Energy Union  {COM(2017) 688 final} - {SWD(2017) 384 final} - {SWD(2017) 385 final} - {SWD(2017) 386 final} - {SWD(2017) 387 final} - {SWD(2017) 388 final} - {SWD(2017) 389 final} - {SWD(2017) 390 final} - {SWD(2017) 391 final} - {SWD(2017) 392 final} - {SWD(2017) 393 final} - {SWD(2017) 394 final} - {SWD(2017) 395 final} - {SWD(2017) 396 final} - {SWD(2017) 397 final} - {SWD(2017) 398 final} - {SWD(2017) 401 final} - {SWD(2017) 402 final} - {SWD(2017) 404 final} - {SWD(2017) 405 final} - {SWD(2017) 406 final} - {SWD(2017) 407 final} - {SWD(2017) 408 final} - {SWD(2017) 409 final} - {SWD(2017) 411 final} - {SWD(2017) 412 final} - {SWD(2017) 413 final} - {SWD(2017) 414 final}  
 
 
                              Energy Union – Italy 

  Italy 
                         Energy Union factsheet1 

1. Macro-economic implications of energy activities 

Energy and transport are key sectors for the overall functioning of the economy as they provide an 
important input and service to the other sectors of the economy. Together the activity in these two 
sectors2 accounted for 7.2 % of the total value added of Italy in 2015. Similarly, their share in total 
employment3 was 5 % in 2015, of which 4.6 % in the transport sector and 0.4 % in the energy sector.  

(source: Eurostat) 

According  to  EurObserv'ER,  in  2015,  the  share  of  direct  and  indirect  renewable  energy  related 
employment in total employment of the economy in Italy was at about 0.44 %, below the EU average 
of 0.54 %. The turnover of the renewable energy industry in the same year was estimated at around 
EUR 18.7 billion, the biggest part being attributed to the biomass (EUR 2.3 billion) followed by wind 
(EUR 570 million), heat pumps (EUR 350 million) and biofuels (EUR 200 million) industries. 

1   The indicators used in this country factsheet largely build on indicators developed for the Commission Staff 
Working  Document  "Monitoring  progress  towards  the  Energy  Union  objectives  –  key  indicators" 
(SWD(2017)  32 
final)  https://ec.europa.eu/commission/sites/beta-political/files/swd-energy-union-key-
indicators_en.pdf  

2   Gross value added and employment in NACE sectors D-Electricity, gas, steam and air conditioning supply 

and H-Transportation and storage 

3   National Accounts, Eurostat 

1 

 
 
 
 
 
                                                            
 
                              Energy Union – Italy 

(source: EC based on Eurobserv'Er and Eurostat) 

The  decarbonisation  of  the  energy  and  transport  sectors  will  require  significant  investments  and 
economic  activity  beyond  the  remit  of  these  sectors  themselves.  The  energy  transition  implies  a 
structural  shift  in  economic  activity.  Energy-related  investment  and  jobs  will  in  part  migrate  from 
traditional  fossil  fuel  based  activities  towards  construction,  equipment  manufacturing  and  other 
services related to the deployment of low carbon and clean energy technologies. At the moment, the 
efforts related to the low-carbon and clean energy transition in sectors beyond energy can only be 
partially quantified and are therefore not included.  

An indication of the level of efforts and challenges encountered by Italy in the energy sector is given 
by the Gross fixed capital formation (GFCF)4. Investments in the electricity and gas sectors, which are 
taken as reference sectors, exhibited a fluctuating trend overt the period 2006-2014. After a pick of 
1.2 % of the country's GDP in 2008, they almost halved in 2014.  

(source: Eurostat) 

In  terms  of  trade,  Italy  is  a  net  importer  of  fossil  fuels  and  electricity.  The  trade  deficit  in  energy 
products  overall  did  not  show  change  in  2015  with  respect  to  2006  (2  %  of  GDP).  There  were, 

4 Gross fixed capital formation consists of resident producers´ acquisitions, less disposals, of fixed tangible or 
intangible assets. This covers, in particular, machinery and equipment, vehicles, dwellings and other buildings. It 
also includes foreign direct investment (FDI). Steam and air conditioning supply are also included in the figures 
mentioned above as Eurostat reports electricity, gas, steam and air conditioning supply together. 

2 

 
 
               
 
 
                                                            
                              Energy Union – Italy 

however,  important  variations  in  the  composition  of  the  import  components.  While  coal  and 
electricity did not show any relevant change, the import of gas increased significantly (0.9 % in 2015) 
and the one of oil almost halved (0.9 % in 2015).   

(source: Eurostat) 

2. Energy security, solidarity and trust 

2.1. Energy Mix 

The energy mix of primary products in Italy differs from  the EU-28 average mix mostly for a higher 
share  of  natural  gas,  a  lower  share  of  solid  fuels  (half  the  EU28  mix)  and  the  absence  of  use  of 
nuclear. Compared to 1995 data, the share of petroleum and oil products decreased (from 58 % to 
37.6  %  of  gross  inland  energy  consumption),  while  the  share  of  renewable  energy  in  gross  inland 
energy consumption increased to 17.3 % in 2015. The share of natural gas increased considerably, to 
36.3 % of the energy mix in 2015, and remains much higher than the EU-28 average (22 %). 

 (source: Eurostat) 

2.2 Import dependency and security of supply 

3 

2015 EU28: Energy mix*wastenuclearrenewablesnatural gasoilsolid fuels0,8%13,6%13,0%22,0%34,4%16,2%1627,5MtoeGIC -total:GIC -energy mix*1626,2Mtoe2015 IT: Energy mix*wastenuclearrenewablesnatural gasoilsolid fuels0,8%0,0%17,3%36,3%37,6%8,1%156,2MtoeGIC -total:152,2MtoeGIC -energy mix*:*energy mix as share share in GIC-excluding electricity and derivedheat exchanges ,GIC=gross inland consumption 
 
 
     
                              Energy Union – Italy 

Net  import  dependency  in  Italy  decreased  between  2005  and  2014,  indicating  an  improvement  in 
energy  security.  This  was  notably  due  to  an  increase  in  indigenous  renewable  energy  production. 
Italy, however, maintains an import dependency above the EU28 for fossil fuels. Import dependency 
is  particularly  high  for  coal,  petroleum  products  and  gas.  The  Italian  import  dependency  has 
increased significantly only for gas (5.7 % between 2005 and 2015) but, if compared to the evolution 
of  overall  EU  import  dependency  on  gas  (12  %  between  2005  and  2015),  this  increase  remains 
moderate.  A  high  share  of  gas  imports  comes  from  Russia5,  but  otherwise,  gas  supply  sources  are 
relatively  well  diversified.  As  such,  the  country  supplier  concentration  index  is  relatively  low.  Still, 
Italy experiences an energy trade deficit (expressed in percentage of GDP) above the EU average. 

 (source: Eurostat) 

The Regulation concerning measures to safeguard security of gas supply requires that, if the single 
largest gas infrastructure fails in one Member State, the capacity of the remaining infrastructure is 
able to satisfy total gas demand during a day of exceptionally high gas demand. Italy complies with 
this rule. 

Italy  plays  an  important  role  in  the  creation  of  a  Mediterranean  gas  hub.  The  strategy  for  the 
diversification  of  gas  supply  is  so  far  to  be  oriented  towards  the  Southern  Corridor.  Within  the 
Southern  Gas  Corridor,  the  construction  of  the  Trans  Adriatic  Pipeline  can  play  a  role  as  long  as  a 
significant diversification of sources is guaranteed. Italy has also PCIs ensuring additional reverse flow 
capacity towards the north western markets by 2018.  

5   Top non-EU gas suppliers table is based on EUROSTAT data. The share of imports from non-EU countries 
is calculated as the ratio between volumes of imports from that specific non-EU supplier and total imports 
(from EU and non-EU countries). 

4 

54,0%77,1%69,1%90,4%88,4%92,2%64,1%100,0%0%40%80%120%EU28ITEU28ITEU28ITEU28ITtotal energycarriersnatural gascrude oil and NGLhard coalImport dependency200520151,9%-6,3%12,0%5,7%7,2%-1,9%8,4%0,3%absolute change 2005-2015 [pp]ITEU28ITEU28ITEU28RussiaRussiaIraqRussiaSouth AfricaRussia45,1%37,3%18,6%28,8%21,1%29,1%AlgeriaNorwayAzerbaijanNorwayRussiaColombia12,5%32,8%17,9%12,4%20,7%24,3%LibyaAlgeriaRussiaNigeriaIndonesiaUnited States11,6%10,7%12,9%8,3%17,3%16,0%*share in total imports for the MS and in total non-EU imports for the EU282015: Top non-EU suppliers for main energy carriers* Natural gasCrude oil and NGLHard coal 
 
 
 
 
                                                            
                              Energy Union – Italy 

(source: gas coordination group) 

3. Internal market 

3.1. Interconnections and wholesale market functioning 

3.1.1. Electricity 

(source: EC services based on ENTSOE         source: EC services based on Eurostat            source: EC 
services based on Platts and European power exchanges) 

In  2017,  the  electricity  interconnection  level6  for  Italy  was  8.2  %,  below  the  2020  target  of  10  %. 
Nevertheless, the country is on the path to reach the 10% target by 2020 through the completion of 
PCIs  currently  under  way.  Italy  remains  insufficiently  connected  with  the  EU  electricity  market  and 
the available interconnection capacity is not always fully exploited.  In this regard, further capacity on 
the  national  network  should  be important  to  overcome internal  bottlenecks  and  take into  account 
the  needs  of  security  and  flexibility  of  the  system.  The  country  still  has  to  improve  its  electricity 
interconnection capacities with the neighbours as it relies on significant power imports with the risk 
of serious congestion problems.  

6 The interconnectivity level is calculated as a ratio between import interconnection and net generation capacities 
of the country (i.e. the 2017 value is the ratio between simultaneous import interconnection capacity [GW] 
and net generating capacity [GW] in the country at 11 January 2017, 19:00 pm as resulted from ENTSO-E 
Winter Outlook 2016/2017) 

5 

 
 
 
 
                                                            
                              Energy Union – Italy 

Overall,  Italy  has  15  Projects  of  Common  Interest  (PCIs),  of  which  7  are  in  the  electricity,  1  in  the 
smart  grids  and  6  in  the  gas  sector  and  1  in  oil  sector,  with  a  focus  mainly  on  interconnectors 
between  Italy  and  France,  Switzerland  and  Austria,  and  the  necessary  internal  reinforcements. 
Altogether  such  investments  will  ease  the  grid  constraints  and  reduce  differences  between  price 
zones.  The  implementation  of  existing  PCIs  by  2020  is  expected  to  improve  Italy’s  interconnection 
capacities with neighbours to around 11 % when completed.  

Italy is amongst the three Member States showing the biggest decrease between 2006 and 2014 of 
the  cumulative  market  share  power  capacities  of  the  main  entities  (-51  %)  indicating  that  smaller 
companies (those with less than 5 % market share) have an increasing role in power generation.7 This 
can be explained by the penetration of wind and photovoltaic generation that facilitated the entry of 
new market players and the decrease in market concentration in many Member States.  

Furthermore,  regarding  the  functioning  of  the  electricity  wholesale  market  in  2015,  the  market 
concentration index for power generation (815) indicates a significantly lower concentration than in 
the  EU  average  (index  of  3,726).  Competition  in  the  electricity  market  has  been  enhanced  by  the 
development  of  the electricity network  and  the  excess  of  supply  caused  by  demand reduction and 
growth in renewables. As a result, Italy registered a significant decrease in the wholesale electricity 
price  between  2013  and  2015  (-17  %).  Nevertheless,  wholesale  electricity  prices  in  Italy  for  2015 
remain amongst the highest in Europe8. 

3.1.2. Gas 

Italy  fully  unbundled  the  gas  transmission  system  operators.  Concentration  on  gas  supply  markets 
continues  to  improve  although  with  ratios  lower  than  EU  average.  If  in  2015  the  market 
concentration  index  for  wholesale  gas  remained  significantly  lower  than  the  EU  average  (2,924 
against  4,771  for  the  EU),  this  level  has  increased  since  2011  indicating  a  decrease  in  competition. 
Moreover,  Italy  is  the  Member  State  that  has  experienced  the  highest  increase  between  2010  and 
2014 of the cumulative market share of main entities bringing gas in the country (+19, 5)9. Despite 
rather low market liquidity, the level of competitiveness on gas markets was somehow improved by 
the early introduction of congestion management rules at the Northern border. 

a 

7 This indicator show the combined share from total generation capacity of the electricity generating companies 
generation. 

having 
https://ec.europa.eu/commission/sites/beta-political/files/swd-energy-union-key-indicators_en.pdf 

of  more 

electricity 

national 

5  % 

share 

than 

8 Wholesale electricity prices  – annual average electricity  price at the national power exchanges or the annual 
average of prices in bidding zones. In 2015 UK had the highest price, followed by four Mediterranean countries: 
Greece, Italy, Spain and Portugal. 
9 This indicator illustrates the combined market share of the gas importers with a market share of 5 % or more.  

of 

6 

 
 
                                                            
                              Energy Union – Italy 

(source: ACER for the left graph and EC services based on Platts, gas hubs, Eurostat for the right graph) 

3.2. Retail electricity and gas markets 

3.2.1. Electricity 

Italian retail electricity prices for industry and residential use remain among the highest in Europe. 
Between 2013 and 2015, average band retail electricity prices for households increased (+4 %) but in 
line with the EU average. This can be partially explained by an increase in taxes and levies. Domestic 
retail prices  for  electricity  are  in general  above  the  EU average,  with the exception  of  the smallest 
consumption classes (which are however representative for Italy: 74% of the Italian consumers are 
included in the first two bands). At retail level, electricity network costs, policy measures costs and 
taxes account, respectively, for 22 %, 22% and 14% of the final price paid by consumers. The share of 
taxes  and  levies  in the Italian  household  electricity  prices  has  increased about 10  %  between 2013 
and  2015.  Italy  has,  nonetheless,  recently  adopted  some  measures  (so-called  "Taglia  bollette")  to 
reduce the burden of renewable energy support schemes on consumers and industry.  

Annual switching rate among household consumers has risen for electricity (from 5.8 % in 2011 to 8 
% in 2015) and is already well above the EU average (6 %). However, electricity and gas retail markets 
remain  concentrated.  Despite  the  numerous  active  electricity  suppliers  (about  140),  the  standard 
(monitored) offer market ("mercato tutelato", which is available to households only) is dominated by 
one company with an 85.4 % market share. The assessment of both retail electricity and gas markets 
in Italy is the 5th lowest in the EU and well below the EU average10. The planned phasing-out of the 
protected  electric  energy  and  gas  market,  even  if  delayed,  is  expected  further  to  increase 
competition and consumer choice.  

Smart metering deployment on ENEL's meters started already in 2001 and was completed in 2006. 
Italy  is  one  of  the  EU  top  runners  in  deploying  smart  meters,  together  with  Finland  and  the 
Netherlands.  

10  
http://ec.europa.eu/consumers/consumer_evidence/consumer_scoreboards/10_edition/index_en.htm 

10th Consumer Markets Scoreboard (June 2014),   

7 

 
 
 
 
 
 
                                                            
                              Energy Union – Italy 

(source: ACER) 

(source: Eurostat)  

(source: Eurostat) 

3.2.2. Gas 

Domestic  retail  prices  for  gas  are  for  all  consumption  bands  amongst  highest  in  Europe.  However, 
between 2013 and 2016, average band retail gas prices for households decreased more than the EU 
average. Network costs and taxes account, respectively, for 18 % and 36 % of the final price paid by 
consumers. While remaining stable since 2013, the share of taxes and levies in the Italian household 
gas prices are 12 percentage points higher than in the average EU gas retail prices.  

Annual switching rates among household consumers have risen also for gas (from 5.2 % in 2011 to 
6.1  %  in  2015)  but  at  a  lower  rate  than  the  average  increase  registered  at  European  level.  The 
planned  phasing-out  of  the  protected  market  is  expected  further  to  increase  competition  and 
consumer choice also for gas.  

As regards smart meters for gas, the current target is at 60 % by 2018 for smaller gas customers.  

(source: ACER) 

(source: Eurostat)  

(source: Eurostat) 

8 

 
 
 
 
 
 
 
 
 
 
 
 
 
                              Energy Union – Italy 

3.2.3. Market performance indicators 

According to  the periodical survey of DG JUST,  the Italian consumers are less satisfied than the EU 
average about the services received on energy retail markets.  

(source: DG JUST survey) 

3.3. Energy affordability  

2014  data  on  the  share  of  energy  in  the  total  household  expenditure  showed  that  in  this  year  the 
poorest  households  (Quintile  1)  spent  7.1%  of  their  expenditure  on  energy,  1.5  percentage  points 
less than the EU-28 average.  

In  the  2017  National  Energy  Strategy  the  Italian  Government  defined  a  comprehensive  strategy  to 
tackle energy poverty based on: 1) the adoption of an official definition and of national measures; 2) 
a thorough review of the existing policies; 3) the creation of an Italian Energy Poverty Observatory 
(IPOV) which will work in coordination with the European Energy Poverty Observatory (EPOV). 

 (source: ad-hoc data collection of DG ENER based on HBS with the support of Eurostat and national statistics) 

9 

 
 
 
 
 
 
 
 
 
 
                              Energy Union – Italy 

4. Energy efficiency and moderation of demand 

Italy's  indicative  2020  energy  efficiency  target  is  at  158  Mtoe  expressed  in  primary  energy 
consumption  (124  Mtoe expressed in  final  energy consumption).  The target  was  set  at  a level that 
would  allow  energy  consumption  to  grow  in  the  coming  years.  Italy  increased  its  primary  energy 
consumption by 4 % from 143.84 Mtoe in 2014 to 149.56 Mtoe in 2015. Final energy consumption 
increased by 3% from 113.35 Mtoe in 2014 to 116.44 Mtoe in 2015. Even if Italy has already achieved 
and is below its indicative national 2020 targets, given the upward trend observed in the more recent 
years it would still need to make an effort to keep these levels in check until 2020.  

(source: Eurostat) 

Although primary energy intensity decreased over 2005-2015 remaining well below the EU average, 
it  decreased  at  a  slower  pace.  In  2015,  transport  was  the  largest  energy  consuming  sector 
representing a 34 % share in the total final energy consumption, which is above the EU average (i.e. 
33.1 %). Also, the energy consumption of the residential sector is above the EU average, with a share 
in total  final  energy consumption  of  27.9  %.  To  tackle  this  challenge,  Italy  provides  a  tax credit for 
energy  efficiency  improvement  measures  in  residential  buildings,  which  also  covers  an  option  of  a 
comprehensive  retrofit  package.  The  total  costs  (public  and  private)  of  the  Italian  scheme  were 
estimated to be 12 euro cents/kWh of saved energy year 2016. The total investment was 31.2 billion 
(2007-2016)  with a  tax  expenditure of  around EUR  18.2  billion11  for  the same  period.  According to 
the  ex-post  assessment,  it  led  to  energy  savings  of  1,08  Mtep/year.12  The  energy  consumption  of 
Italy's  industrial  sector  in  2015  represented  around  22.3  %  of  total  final  energy  consumption,  well 
below the EU average of 25.3 %. The energy consumption of the services sectors is aligned with the 
EU average, with a share in total final energy consumption of 13.2 % against the 13.6 % at EU level. 

11  Rapporto  Annuale  Detrazioni  fiscali  del  65%  per  la  riqualificazione  energetica  del  patrimonio  edilizio 
esistente,  2017,  ENEA  -  Agenzia  nazionale  per  le  nuove  tecnologie,  l'energia  e  lo  sviluppo  economico 
sostenibile 

12 Rapporto Annuale Efficienza Energetica 2017, ENEA - Agenzia nazionale per le nuove tecnologie, l'energia e 

lo sviluppo economico sostenibile. 

10 

 
 
 
 
 
                                                            
                              Energy Union – Italy 

(source: Eurostat) 

In terms of energy efficiency, progress can be observed in the final energy intensity in industry whilst 
in  the  services  sector  virtually  no  change  has  taken  place  in  the  period  2005-2015.  In  the  final 
consumption per m2 for the residential sector, there has been a slight improvement.    

(source: Eurostat)  

(source: Eurostat)  

  (source: Odyssee database) 

Between  2005  and  2015  in  Italy,  the  final  energy  consumption  in  transport  recorded  an  average 
annual  decrease  of  1.2  %,  which  was  bigger  than  the  average  annual  decrease  of  the  GDP  in  this 
period.  The  decrease  of  final  energy  consumption  was  mostly  driven  by  a  strong  decline  of  freight 
transport activity affected by the economic context.  

(source: Eurostat)  

        (source: Eurostat and DG MOVE pocketbook) 

11 

2015 EU28: Final energy consumptionwasteservicesagriculture/forestry/fishingresidentialtransportindustry0,4%13,6%2,3%25,4%33,1%25,3%1084,0Mtoe2015 IT: Final energy consumptionother (non-specified)servicesagriculture/forestry/fishingresidentialtransportindustry0,1%13,2%2,4%27,9%34,0%22,3%116,4Mtoe 
 
 
 
 
 
 
 
 
 
 
 
 
                              Energy Union – Italy 

The share of collective passengers land  transport into total passengers' transport slightly increased 
between 2005 and 2015 indicating a higher use of public transport in Italy compared to the EU level.  

(source: Eurostat)  

Italy took a progressive step for the transport planning, programming and investments with the 2016 
Annex on infrastructure to the Economy and Finance Document ("Documento Economia e Finanza"), 
which introduced two new tools: a general plan for transport and logistics (Piano generale trasporti e 
logistica - PGTL) and a document of multiannual planning (Documento Pluriennale di Pianificazione - 
DPP).  

A national strategic plan for ports and logistics to increase efficiency and rationalise the port sector 
was  presented  in  2015,  and  its  full  implementation  is  still  ongoing.  However,  the  Italian  railway 
sector continues to face the challenge of a persistent gap between northern and southern regions, in 
terms of both infrastructure endowment and traffic management technology. The Italian authorities 
have announced a pro-market privatisation of the railway incumbent company (Ferrovie dello Stato), 
which nevertheless has been postponed several times. Local transport services still face a number of 
weaknesses in terms of quality and infrastructure and in-house awards are prevailing, although local 
public transport firms selected through competitive tenders show a higher level of productivity.   

Italy  is  also  active  in  promoting  modal  shift.  In  this  respect,  examples  of  good  practices  are  the 
Ferrobonus  scheme,  aiming  at  encouraging  the  shift  of  freight  transport  from  road  to  rail  and  the 
network of multimodal logistic platforms ("interporti", PPPs) based on ad-hoc existing legislation. 

5. Decarbonisation of the economy 

5.1. GHG emissions 

Italy  has  a  greenhouse  gas  emissions  target  of  -13  %  in  non-ETS  sectors  in  2020  (compared  with 
emissions in 2005). According to approximate data for 2016, emissions decreased by 17 % between 
2005 and 2016. 

According  to  the  latest  national  projections  submitted  to  the  European  Commission  in  2017  and 
taking  into  account  existing  measures,  emissions  are  projected  to  decrease  by  21  %  by  2020  as 

12 

 
 
 
 
       
 
                              Energy Union – Italy 

compared with 2005. Therefore, Italy is on track to reach its 2020 greenhouse gas emission reduction 
target, with an 8 percentage point margin. 

(source: EC and EEA)   

According to 2016 EEA estimates, the GHG intensity of Italy's economy was below the EU average. In 
2016, the GHG emissions per capita in Italy were below the EU average and they have decreased by 
around 21% since 1990. 

In 2015 in Italy, the largest sectors in terms of GHG emissions were the energy and transport sector 
(both representing approximately 1/4 of the total GHG emissions) followed by industry (19.1 %), and 
residential and commercial sectors (17.1 %). In relative terms, the GHG emissions from the transport 
and residential and commercial sectors were well above the EU average (respectively 24.5 % vs an EU 
average of 21 % and 17.1 % vs an EU average of 12.8 %).  

(source: EC and EEA)   

Preliminary accounts under the Kyoto Protocol for Italy show overall removals of -15.2 Mt CO2-eq. as 
an  annual  average  in  the  period  2013-2015.  For  comparison,  the  annual  average  of  the  EU-28 
accounted  for  removals  of  -119.0  Mt  CO2-eq.  It  should  be  noted  that  in  this  preliminary  simulated 
accounting exercise, removals from Forest Management did by far not exceed the accounting cap.  

13 

 
 
 
 
 
 
 
                              Energy Union – Italy 

Removals by Afforestation are notably higher than emissions by Deforestation; however, removals by 
Forest  Management  gained  relative  importance  over  time  and  becoming  the  most  important 
contributor  in  2015.  Removals  by  Grassland  Management  and  emission  by  Cropland  Management 
show  very  small  shares.  Overall,  there  is  a  clearly  increasing  trend  in  removals,  mainly  due  to 
increasing  removals  by  Forest  Management  and  Afforestation.  Deforestation  shows  no  change  in 
emissions over the course of the three-year period.  

Note: Forest Management credits are capped and presented as yearly averages when the total Forest 
Management credits of the considered period exceed the simulated cap over the same period. 
(source: EC and EEA) 

CO2 emissions in transport and alternative fuelled vehicles 

The average CO2 emissions of new cars in Italy in 2016 were below the EU average and steadily 
decreased between 2005 and 2016. 

 (source: European Environment Agency) 

14 

 
 
 
 
  
 
 
 
 
                              Energy Union – Italy 

The shares of alternative power trains in the new cars sold during the last three years remain limited, 
in particular for electrically rechargeable vehicles. Italy is focusing on natural gas as a main option to 
support the objectives of sustainable mobility.   

In the period from 2013 to 2016, the number of electric charging points in Italy has increased  with 
more than 600 units, from 1 350 charging points in 2013 to 1 999 points in 2016. 

 (European Environment Agency)  

       (European Alternative Fuels Observatory) 

National Policy Frameworks under Directive 2014/94/EU on alternative fuels infrastructure have to 
establish targets, objective and measures for the development of the market of alternative fuels in 
the  transport  sector  and  the  deployment  of  the  relevant  infrastructure.  Italy  has  submitted  its 
National Policy Framework as requested under article 3 of the Directive 2014/94/EU.  

A detailed assessment of the Italian National Policy Framework in terms of its compliance with the 
requirements  of  Directive  2014/94/EU  on  alternative  fuels  infrastructure,  its  contribution  to 
achievement  of  long-term  energy and  climate  objectives  of  the  Union  and  coherence of  its  targets 
and objectives in terms of cross-border continuity has been published as part of the Communication 
on  Alternative  Fuels  Action  Plans  (COM(2017)652)  and   the  related  staff  working  document 
SWD(2017)365.  

5.2. Adaptation to climate change 

The  Italian  National  Adaptation  Strategy  was  adopted  in  2015  with  a  Directional  Decree  of  the 
Climate  Change  and  Energy  General  Directors.  A  National  Adaptation  Plan  (PNAC)  and  Sectoral 
Adaptation Plans are currently still under development. The main adaptation activities implemented 
to date concern the most vulnerable sectors such as agriculture, water use, forests, human health, 
flood risk, desertification and drought, coastal areas, biodiversity, tourism, and urban settlements. A 
monitoring system, aimed at evaluating progress in implementing the NAS, is not yet in place, neither 
at  the  national  level  nor  at  the  regional  level.  The  NAP  will  provide  guidelines  for  monitoring  the 
implementation of adaptation actions and their efficiency. 

5.3. Taxes on energy and transport and fossil fuel subsidies  

The  overall  tax  burden  on  energy  and  transport  in  Italy  amounts  to  3.6%  of  GDP,  i.e.  considerably 
higher than the EU average (1.2 p.p. in 2014). While fuel and vehicles taxation are broadly in line with 
the  EU-average  and  almost  stable  between  the  two  considered  years,  the  tax  burden  on  heat  and 

15 

 
 
 
 
 
 
                              Energy Union – Italy 

electricity  is  significantly  higher  (1.4%  with  respect  to  0.6%  EU  average  in  2014),  and  has  nearly 
doubled  during  the  period.  There  is  no  carbon  component  in  the  vehicle  or  the  energy  tax 
framework.  

(source: Eurostat) 

Hovering  at  a  stable  level  for  many  years,  the  amount  of  support  dedicated  to  fossil-fuel 
consumption in Italy has risen sharply since 2012. This development is mainly a result of the nominal 
increase in tax credits granted to trucking companies for the purchase of diesel.  

No overall data are available on the fiscal costs of the subsidies supporting the production of fossil 
fuels  in  Italy.  However,  it  has  to  be  noted  that  Italy  granted  a  State  aid  in  favour  of  Carbosulcis 
S.p.A.to finance the irrevocable orderly winding down of activities of the Nuraxi Figus mine - the only 
operational coal mine in the country. The objective of the aid measure is to facilitate the closure of 
the mine by the end of 2018, to cover current production losses in the period 2011-2018 arising from 
the operation of the mine in accordance with the rules set out in the Council Decision 2010/787/EU. 
The measure is further intended to cover exceptional costs arising from the definitive closure of the 
mine.  In  this  context,  the  Italian  authorities  have  provided  an  environmental  protection  plan  to 
mitigate the environmental impact of coal production which includes renewable energy installations, 
and coal desulphurisation13. 

13 Cf http://ec.europa.eu/competition/state_aid/cases/246720/246720_1726073_167_2.pdf 

16 

 
 
 
 
 
 
                                                            
                              Energy Union – Italy 

(source: OECD Inventory of Support Measures for Fossil Fuels 2015)  

5.4. Renewable energy  

With  a  renewable  energy  share  of  17.1  %  in  2015,  Italy  has  already  reached  the  2020  target.  The 
share of renewable electricity generation in final electricity consumption and in heating and cooling 
more than doubled between 2005 and 2015, increasing from 16.3 % to 33.5 % and from 8.2 % to 19.2 
%  respectively.  Due  to  its  large  resource  potential,  Italy  is  also  one  of  the  three  countries  (with 
France and Hungary) that are leading the European geothermal production and with Sweden, France, 
Austria  and  Spain  accounts  for  around  70  %  of  all  hydropower  in  the  EU-28.  In  2015,  38  %  of  the 
solar-PV electricity in the EU-28 was produced in Germany, Italy and Spain. Italy is also the leading 
country in the deployment of heat pumps, primarily used for cooling. On the contrary, Italy is still far 
from reaching the 2020 renewable energy share in transport despite the fact that the country is one 
of the main consumers of biodiesel. 

Past  changes  in support  schemes  for  renewables  (e.g.  retroactive cuts  in feed-in tariffs  for  existing 
projects), the uncertainty about the post-2016 regulatory framework for renewables, and persistent 
burdensome administrative procedures limited market growth during the last couple of years.  

 (source: Eurostat-SHARES) 

(source: Eurostat-SHARES) 

17 

 
 
 
 
 
 
 
 
                              Energy Union – Italy 

Due to a consistent deployment of renewables since 2005, it is estimated that Italy avoided in 2015 
about 11.6  %  of  the fossil fuel  in gross  inland  consumption  and  about 10.1  %  of  GHG  emissions  at 
national level14.   

 (source: EEA) 

5.5. Contribution of the Energy Union to better air quality 

Air quality in Italy continues to give cause for concern. For the year 2013, the European Environment 
Agency estimated that in Italy about 66,630 premature deaths were attributable to fine  particulate 
matter (PM2.5) concentrations and 21,040 to nitrogen dioxide (NO2) concentrations15.  

For both pollutants Italy reported exceedances of the binding EU air quality standards16. For the year 
2015, Italy reported exceedances of the limit value for PM10 in 36 out of the 82 air quality zones in 
Italy, while exceedances of the limit value for PM2.5 were reported in 18 zones and of the limit value 
for NO2 in 21 out of the 82 zones as shown in the figure below.  

14 Avoided GHG emissions mentioned here have a theoretical character as these contributions do not necessarily 
represent 'net GHG savings per se' nor are they based on life-cycle assessment or full carbon accounting. 
15  European  Environment  Agency,  2016,  Air  Quality  in  Europe  –  2016  Report,  table  10.2.  The  report  also 
includes details as regards the underpinning methodology for calculating premature deaths.    
16 Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality 
and cleaner air for Europe, OJ L 152, 11.6.2008, p.1-44 

18 

 
 
 
 
 
 
 
                                                            
                              Energy Union – Italy 

(source: EEA) 

The  health-related  external  costs  from  air  pollution  have  been  estimated  to  be  more  than  EUR  47 
billion/year (income adjusted, 2010), which includes the intrinsic value of living a healthy life without 
premature death as well as the direct costs to the economy such as healthcare costs and lost working 
days due to sickness caused by air pollution17. 

The  Energy  Union  can  substantially  contribute  to  addressing  these  air  quality  problems  through 
measures reducing emissions of both GHG and air pollutants such as PM and nitrogen oxides (NOx) 
from major contributing sectors such as (road) transport, energy production, industry and residential 
heating (e.g. stoves and boilers) as shown in the figure below18. 

(Source: EEA. This table reflects only sources of primary PM2,5 emissions.) 

6. Research, innovation and competitiveness  
6.1. Research and innovation policy 

The Italian National Energy Strategy adopted in 2013 aimed at paving the way  for wider and more 
effective participation of industry and Italy's public and private research centres in R&I programmes. 
The  Strategy  proposed  a  series  of  new  measures  which  were  effectively  incorporated  into  R&I-
related policy frameworks (e.g. the Fund for System Research in the Electricity Sector and the Fund 
for Sustainable Growth). The new Energy Strategy released for public consultation in 2017 identified 
several technology areas as prospective priority sectors for R&I efforts at the national level, such as 
solar  energy,  geothermal,  wave  energy,  technologies  enhancing  the  security  and  resilience  of  the 
electricity  system,  storage  systems,  electric  mobility,  biorefineries,  advanced  materials,  and  energy 
efficiency in buildings and industry19. 

17  See  also  the  EU  Environmental  Implementation  Review  Country  Report  for  Italy,  SWD(2017)47  final  of 
3.2.2017 
18 National emission data as reported by the Member States to the EEA (available on the EEA's Eionet/Central 
Data Repository), http://cdr.eionet.europa.eu/it/eu/nec_revised 
19  At  the  time  of  this writing  the  National  Energy  Strategy  is  being  revised  to  incorporate  comments  received 
from stakeholders during the public consultation phase. The official release of the Strategy is expected before 
the end of 2017.  

19 

 
 
 
 
 
 
                                                            
                              Energy Union – Italy 

In addition, the Italian Central Government has undergone a substantial revision of the governance 
of the public research system through a National Research Plan (PNR) for the period 2015-2020 that 
includes  all  R&I  activities  related  to  energy  and  clean  technologies.  This  revision  aims  to  reduce 
fragmentation in the R&I landscape. The PNR's budgetary allocation was EUR 2.5 billion. 

Italy’s technological innovation activities are closely co-ordinated with the European Union Strategic 
Energy Technology (SET) Plan, where Italy is also a very active contributor. It participates  in all the 
temporary  working  groups  for  the  implementation  of  the  integrated  SET  Plan,  co-leading  those 
dedicated to energy systems, deep geothermal and renewable fuels and bioenergy. 

Regarding the Horizon 2020 programme, Italy has so far received 10% of the EU contribution devoted 
to  the  'secure,  clean  and  efficient  energy'  part  of  the  programme.  As  of  September  2017,  480 
participations from Italian organisations have been awarded EUR 182 million in Horizon 2020 energy 
projects. This includes a grant of EUR 9.6 million to SOLIDpower for its participation in project PACE 
(residential fuel cell combined heat and power installations), and three grants totalling over EUR 3.5 
million to Italian beneficiaries participating in project ORC-PLUS (innovative thermal energy storage 
for CSP plants). 

Italy is a founding member of Mission Innovation (MI)20. As a result, it has committed to doubling MI-
related public funding of clean energy RD&D21 from EUR 222.6 million in 2013 to EUR 445.3 million 
in  2021.  These  additional  investments  will  focus  on low  carbon  technologies,  including  energy 
efficiency in industry and buildings, renewable energy, electricity grid (including smart cities), energy 
storage  as  well  as  basic  energy  research.  Investments  will  be  implemented  through  a  number  of 
mechanisms  including  cost-shared  projects  with  the  private  sector,  research  and  development 
activities at the R&D National Agencies, grants to universities, and Cohesion Funds at regional level.  

6.2. Investments and patents in the Energy Union R&I priorities  

In  2014,  public  (national)  investments  in  the  Energy  Union  R&I  priorities  reached  EUR  542  million, 
having increased by 6 % compared to 2013. This was the highest annual public investment reported 
in the period 2007-2014. The largest share of investments (54%) was attracted by the Smart System 
R&I priority of the Energy Union, followed by the Nuclear Safety and the Renewables priorities (14% 
each).  In  2014,  the  most  recent  year  for  which  data  for  most  Member  States  are  available,  public 
investment per GDP in Italy was similar to the EU average. 

Private investment in the Energy Union R&I priorities in 2013 was estimated at EUR 717 million (4% 
of  the  private  R&I  investment  in  Energy  Union  R&I  priorities  in  the  EU).  The  focus  was  on 
Renewables,  which  received  32%  of  these  investments,  followed  by  Efficient  Systems  (24%)  and 
Smart System priority (21%). 

20 http://mission-innovation.net/  
21 The baseline for doubling under the MI pledge is composed of clean energy RD&D spending in focus areas 
for Mission Innovation, so it does not necessarily include all areas of RD&D research in clean energy in a 
specific country (e.g., nuclear).     

20 

 
 
 
 
 
 
 
 
 
 
 
                                                            
                              Energy Union – Italy 

In 2013, the most recent year for which complete patent22 statistics are available, 227 companies and 
research organisations based in Italy filed 258 patents in low-carbon energy technologies (4% of the 
EU  total).  The  focus  was  on  Renewables  (31%),  followed  by  the  Smart  System  (24%)  and  Efficient 
systems priority (21%). 

In 2013, private R&I investments and patents in Energy Union R&I priorities were lower than the EU 
average  when  normalised  by  GDP  and  by  population  respectively.  In  the  period  2007-2013,  both 
private  R&I  investments  and  the  number  of  patents  in  Energy  Union  R&I  priorities  increased  on 
average by 1% and 10% per year, displaying lower average rates of increase than the indicators at EU 
level (6% and 15% respectively).  

(Data sources: Public investment as available in the International Energy Agency RD&D Statistics database23 for 
codes  relevant  to  Energy  Union  RIC  priorities.  Patent  data  based  on  the  European  Patent  Office  PATSTAT 
database24. Private investment as estimated by JRC SETIS. Detailed methodology available from the JRC25.) 

22   In  the  context  of  this  document,  the  term  'patent'  refers  to  patent  families,  rather  than  applications,  as  a 
measure  of  innovative  activity.  Patent  families  include  all documents  relevant to  a  distinct  invention (e.g. 
applications to multiple authorities), thus preventing multiple counting. A fraction of the family is allocated 
to each applicant and relevant technology. 

23 http://www.iea.org/statistics/RDDonlinedataservice/  
24 https://www.epo.org/searching-for-patents/business/patstat.html#tab1  
25 https://setis.ec.europa.eu/related-jrc-activities/jrc-setis-reports/monitoring-ri-low-carbon-energy-technologies  

21 

 
 
 
 
 
 
 
                                                            
                              Energy Union – Italy 

6.3. Competitiveness 

The real unit energy costs (RUEC)26 in Italy (18.9) were above those at the EU average (15.3), almost 
three times more than those in the US but below those in Japan and China. The energy intensity27 of 
Italy's manufacturing sector is slightly lower than the EU's and much lower than of the US, while real 
energy  prices  are  higher  vis-à-vis  both.  In  recent  years,  manufacturing  firms'  profit  margins  have 
recovered somewhat thanks to the moderation in nominal unit labour costs and lower energy costs. 

Regarding electricity prices paid by industrial customers, Italy experiences one of the highest prices in 
the  EU,  and  higher  than  most  non-EU  trade  partners  too.  Conversely,  gas  prices  for  industrial 
consumers are aligned with the EU and OECD averages. There is, however, both for electricity and 
gas, a large discrepancy between minimum and maximum prices paid industry, based on the level of 
consumption.  

(source: ECFIN) 

                   (source: Eurostat and IEA) 

Italy enjoys a considerable specialisation in wind technologies, notably wind turbines generating sets 
and  gearboxes,  as  indicated  by  a  revealed  comparative  advantage  indicator28  well  above  1.  The 
situation  is  different  for  solar  PV,  where  the  country  shows  an  indicator  of  revealed  comparative 
advantage below 1. This difference is confirmed by the relative trade balance29, showing that Italy is 
a net exporter of wind components and a net importer of solar PV technology.  

26   This indicator measures the amount of money spent on energy sources needed to obtain one unit of value 

added. 

27   The  energy  intensity  presented  here  is  derived  from  Use  Tables  of  WIOD,  see  "Energy  Economic 

Developments in Europe SWD(2014)19".  

28 The RCA index for product "i" is defined as follows: RCAi =

Xj,i
∑ Xj,i
i
Xw,i
∑ Xw,i
i

 where X is the value of exports, and j is 

the country and w is the reference group, the World economy. 2005 refers in the text to the indicator average 
over the 2000-2009 period, while 2015 represents the average over the 2010-2016 period. The same applies for 
the RTB indicator - see below. 
29 The RTB indicator for product "i" is defined as follows: 𝑅𝑇𝐵𝑖 =
exports and 𝑀𝑖 imports. 

 where 𝑋𝑖 is the value of product's "i" 

𝑋𝑖−𝑀𝑖
𝑋𝑖+𝑀𝑖

22 

 
 
 
 
 
 
 
 
 
 
                                                            
                              Energy Union – Italy 

(source: UN comtrade) 

7. Regional and local cooperation 

Regional  cooperation  on  infrastructure  development  is  necessary  to  optimise  the  identification  of 
regional infrastructure priorities and to coordinate cross-border investments. Italy is a member of 5 
energy  infrastructure  priority  corridors  which  have  been  established  under  the  TEN-E  Regulation: 
North South Electricity Interconnections in Eastern Europe, North South Electricity Interconnections 
in  Western  Europe,  North  South  Gas  Interconnections  in  Western  Europe,  North  South  Gas 
Interconnections in Eastern Europe and the Southern Gas Corridor. 

Italy  is  also  member  of  the  Central  and  South-Eastern  Europe  Gas  Connectivity  (CESEC)  High-Level 
Group.  The  aim  of  the  group  is  to  coordinate  efforts  to  facilitate  cross-border  and  trans-European 
projects that diversify gas supplies to the region, as well as to implement harmonised rules. 

In the context of regional  cooperation  with neighbouring countries, Italy is active in the context of 
the  EuroMed  platforms  which  provide  for  cooperation  of  regulators  and  transmission  system 
operators around the Mediterranean with the objective to develop a plan for an integrated regional 
network including identification of projects of Euromed common interest. 

The EU macro-regional strategies for the Alpine Region and the Adriatic and Ionian Region in which 
Italy takes part can be used as a basis for regional cooperation on energy. The Autonomous Province 
of  Bolzano  -  South  Tyrol  is  leader  of  the  action  'To  make  the  territory  a  model  region  for  energy 
efficiency and renewable energy' in the strategy for the Alpine Region and Italy is a co-coordinator of 
the  pillar  'Connect  the  Region',  which  among  other  topics  also  focuses  on  energy  networks  in  the 
strategy for the Adriatic and Ionian Region. European Territorial Cooperation – 'Interreg' – under EU 
cohesion policy also provides further opportunities for cross-border, transnational and interregional 
cooperation, including in the Energy Union areas. 

23 

 
 
 
 
 
                              Energy Union – Italy 

Cities and urban areas have a key role in the energy and climate challenge. The Urban Agenda for the 
EU,  established  by  the  Pact  of  Amsterdam  in  May  2016,  better  involves  cities  in  the  design  and 
implementation of policies, including those related to the Energy Union. It is implemented through 
Partnerships, in which the Commission, Member States, cities and stakeholders work together on a 
number  of  important  areas,  including  on  Energy  Transition,  Urban  Mobility,  Air  Quality,  Climate 
Adaptation and Housing. Italy is participating in the partnerships on Climate Adaptation, with the city 
of  Genova  as  coordinator  and  the  city  of  Potenza  as  member,  Energy  Transition,  with  the  city  of 
Udine as member, Urban Mobility, with the city of Bari as member, and Air Quality, with the city of 
Milano as member. 

By  2016  on  Covenant  of  Mayors,  the  sustainable  energy  action  plans  delivered  by  2953  Italian 
municipalities had been assessed. Overall, these municipalities cover about 37 million inhabitants. All 
together,  these  municipalities  committed  to  reduce  by  2020  the  GHG  emissions  by  23.5%  (as 
compared to 1990 baseline).  

(source: JRC 2016. Notes: SEAP=sustainable energy action plan, GHG=greenhouse gas emissions) 

In Italy, by September 2016, 117 cities (covering 3.9 million inhabitants) have committed to conduct 
vulnerability and risk assessment and develop and implement adaptation plans in the framework of 
the Covenant of Mayors for Climate and Energy. 

8. Cohesion policy and EU-supported clean energy investments  

EU  cohesion  policy  makes  a  key  contribution  to  delivering  the  Energy  Union  objectives  on  the 
ground,  including  important  investment  possibilities  to  implement  energy  policy  objectives  in  Italy 
which will are complemented by national public and private co-financing, aiming at optimal leverage. 
It  also  ensures  integrated  territorial  solutions  to  energy  and  climate  challenges,  supports  capacity 
building and provides technical assistance. 

Over  2014-2020,  cohesion  policy  is  investing  some  EUR  2,026  million  in  energy  efficiency 
improvements in public and, to a lesser extent, residential buildings and in enterprises, as well as in 
high-efficiency cogeneration and district heating, renewable energy and smart electricity distribution 
grids in Italy. Cohesion policy is also investing significantly in R&I and in SME competitiveness in Italy, 
based on the national and regional strategies for smart specialisation. For Italy, the national strategy 
identifies five macro-areas of specialisation, including one on smart and sustainable industry, energy 
and  environment.  Many  regional  strategies  further  develop  their  areas  of  specialisation  targeting 
smart and sustainable energy, sustainable mobility, blue growth and green chemistry. At this stage, 
at least EUR 33 million is foreseen for investments in R&I and adoption of low-carbon technologies in 
Italy,  but  this  might  increase  further  in  line  with  the  evolving  content  of  the  smart  specialisation 
strategies.  A  further  estimated  EUR  3,714  million  is  invested  in  supporting  the  move  towards  an 
energy-efficient, decarbonised transport sector. 

24 

 
 
 
                              Energy Union – Italy 

(source: DG REGIO) 

These  investments  are  expected  to  contribute  to  around  1,000  households  with  improved  energy 
consumption  classification,  a  decrease  of  around  344,883,000  kWh  per  year  of  primary  energy 
consumption of public buildings, around 304,000 additional users connected to smart grids and 400 
MW  of  additional  capacity  of  renewable  energy  production,  as  well  as  to  around  440  km  of 
reconstructed  or  upgraded  railway  lines  and  250  km  of  new  or  improved  tram  and  metro  lines. 
Overall, the EU cohesion policy investments in Italy over 2014-2020 are expected to contribute to an 
estimated annual decrease of GHG emissions of around 5,159,000 tonnes of CO2eq. 

For example, the project on solar energy in the University of Sannio concerns the installation of two 
thermic  solar  plants  with  solar  cooling  system  in  two  historical  buildings  hosting  the  University  of 
Sannio  in  Campania.  The  new  system  provides  around  96%  of  the  total  energy  needed  for  the 
summer  cooling  system  and  51  %  of  the  total  energy  needed  for  the  winter  heating  system.  The 
project also had a positive impact on  the overall activity of the University: a new Degree course in 
Energy  Engineering  has  been  introduced,  (the  only  existing  course  in  Southern  Italy,  together  with 
Palermo  University).  The  total  cost  of  the  project  was  EUR  389,640,  with  a  contribution  from  the 
European Regional Development Fund (ERDF) of EUR 292,000 from the Interregional Programme on 
Energy Efficiency and Renewable energies for 2007-2013.  

As another example, the project on hydrogen technology in Alto Adige concerns the construction of a 
pilot plant for the production of hydrogen from renewable sources, and for its distribution to supply 
private cars as well as for public transport (buses). The plant was built in the city of Bolzano and is 
considered to be one of the largest and most innovative in the world. The hydrogen which is stored 
in the plant can supply up to a daily 15 buses (running every day for 200-250 km) and a daily 700 cars 
(running  every  day  for  50  km).  This  pilot  plant  was  developed  by  the  Institute  for  Technological 
Innovation  and  costs  EUR  6,397,500,  with  contribution  from  the  European  Regional  Development 
Fund (ERDF) of EUR 2,110,989 from the Regional Operational Programme for Bolzano 2007-2013.  

Through  its  support  to  sustainable  transport  systems,  the  Connecting  Europe  Facility  (CEF)  also 
contributes  to  the goals  of the Energy  Union.  Following  Italian  participation  in the CEF  –  Transport 
programme 2014-2015, the Italian action portfolio comprises 41 signed grant agreements, allocating 
EUR  1,309.7  million  of  actual  CEF  Transport  Funding  to  Italian  beneficiaries  (state-of-play  February 
2017)30.  The  transport  mode  which  receives  the  highest  share  of  funding  is  rail  (87.8  %  of  actual 
funding).  These  actions  are  related  to  the  Brenner  Base  Tunnel,  the  Rhine-Alpine  Corridor,  the 
Mediterranean  Corridor,  the  Baltic  Adriatic  Corridor,  and  to  the  deployment  of  the  European  Rail 
Traffic Management System (ERTMS). 

30 Note that European Economic Interest Groups and International Organisations are excluded from the analysis. 

25 

05001.0001.5002.0002.5003.0003.5004.000Energy and Low-carbon R&ILow-carbon transport[Million EUR]ITERDF and Cohesion Funds allocation on energy, low-carbon transport and low-carbon R&I 2014-2020 2.0593.714Total alocation [mn EUR] 
 
 
                                                            
                              Energy Union – Italy 

The  Italian  action  portfolio  also  includes  a  large  share  of  maritime  actions,  which  in  overall  are 
divided into two groups. The first group of actions includes studies aiming at the deployment of Sea 
Traffic Management in order to tackle communication challenges and overcome information sharing 
difficulties  in  the  supply  chain  where  maritime  transport  is  involved.  Moreover,  these  studies  also 
aim  at  enhancing  safety,  as  well  as  validating  and  deploying  alternative  fuel  strategies,  with  a 
particular  focus  on  LNG.  The  second  group  focus  on  improving  accessibility  to  ports  and  their 
hinterland connexions to the Core Network and on implementing LNG bunkering stations. The Italian 
inland waterways (IWW) actions funded under the CEF programme are aiming to improve the Inland 
Waterway  System  in  North  Italy  and  increasing  the  number  of  vessels  using  IWW.  The  Italian  road 
actions  are  mainly  focusing  on  the  implementation  of  intelligent  transport  services  (ITS),  and  the 
deployment of alternative fuels to speed up the transition from diesel to LNG and to encourage the 
use of electric vehicle along four Core Network Corridors by installing and developing a refuelling and 
charging stations network.31 

31 Source: INEA 

26