Threats to Progressive Renewable Energy in Italy

Minku Lee
December 16, 2018

Submitted as coursework for PH240, Stanford University, Fall 2018

Introduction

Fig. 1: A Sicilian wind farm near the coast. (Source: Wikimedia Commons)

Italy is a country that has been relatively quiet concerning the recent global movement of energy. While it wasnt a particularly established player to begin with, it was plagued with other problems that diverted its focus from building its infrastructure and reducing its dependence on imports. Even in late 2015, Italy imported 76% overall of its energy needs, which is a very tentative position to be in, considering its dependence on Europe and pipelines from local countries to transport fuel such as natural gas. [1] Although Italy has almost 20% of its energy produced from renewable sources, it still imports 90% of its natural gas, largely from Russia. [1] In this response, we will examine the state of Italys energy problem, some potential solutions, and what the future looks like ahead for this country.

Analyzing the Energy Scene

Europe in particular is an interesting array of countries with wildly different priorities when examining the continent on a country-by-country basis. Denmark, for example, is well-known to be a world leader in renewable energy, while Italy is a country many do not even consider progressive in the space. This is not particularly Italys fault, however; problems with competition from China have been a major thorn in Italys side, especially when it comes to the solar market, which Italy has tried to break into multiple times. [2] China's well-developed connections, large production base, and complex supply chain methodologies far outpace Italys outdated manufacturing strategies, as well as their sheer focus on the subject, while Italy is dealing with a myriad of other issues that plague the country. [2] However, that focus has been shifting as of recent times, as Europe is trying to make one last stand to push into the solar energy and sustainability market by pushing out products to be more innovative, similar to how Tesla is innovating the electric car and solar industry back in the United States, as to not be as easily copied by Chinese competitors. [2]

Future Threats and Prospects in the Region

The key to Italy's success in the renewable energy industry lies within an unsuspecting place in the country: Sicily. An island in the near the tip of the boot more known for criminal gangs and the Mafia as opposed to renewable energy, Sicily is actually known as the birthplace of wind energy in Italy, as shown in Fig. 1 by some of the budding wind turbines in Sicily, but faces widespread corruption and issues that go beyond solving the energy crisis in Europe and beyond. [3] There are political issues in Italy that have the plagued the country for years and years, taking form fully in recent elections that shifted power away from the progressive parties, diverting focus away from national matters that could improve the economy. One infamous instance of crime that stood in the way of progress was the Gone with the Wind Operation, in which politicians and bankers were plotting to embezzle 30 million in E.U. funds intended to aid Sicily by helping set up some of the wind farms and operations to start providing sustainable wind energy to the state. [3] Unfortunately, with a country in as much turmoil as Italy politically, there is not as much focus on energy as there should be, considering that it must import most of its energy as it historically has no notable sources of gas, oil, or renewable energy sources. This speaks even greater to Italys need for reform and initiate a greater push towards attaining sustainability.

How It Could Be Improved

A shift back towards initial plans before the political storm hit the country would come as a relief to Italys green electricity generators. Energy produced by renewable sources went down by 16 percent from 2014 levels after the clean energy incentives were reduced and utilities were reverted to more traditional thermal generation methods, including coal and imported fuels. [4] Technology development and fuel exports are vital to providing stability back to Italys power, particularly in the industrial sector, which requires large investments. A good indicator that there is hope for renewables yet in Italy was when Prime Minister Paolo Gentiloni recently pledged to provide 35 billion euros (around $41.5 billion) to help renewables cover about 28 percent of total energy demand by 2030. [3] While this isnt quite as progressive as some other countries that have wholeheartedly invested in the renewable energy movement such as China, which has rapidly taken over the clean energy market with their $1 trillion One Belt, One Road plan to build infrastructure and heavily reduce their dependence on coal, which has plagued the countrys air pollution problems for decades, it is still a step in the right direction, and something that can be championed as a great positive in a period of great turmoil for Italy. [5]

© Minku Lee. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.

References

[1] S. Jewkes, "Italy Keeps Foot on Gas as It Calls for Early End to Coal," Reuters, 10 Nov 17.

[2] S. Reed and K. Bradsher, "In Shadow of Mt. Etna, Europe Makes a Last Stand for Solar," New York Times, 16 Aug 18.

[3] D. Carvajal, "With Wind Energy, Opportunity for Corruption," New York Times, 13 Dec 09.

[4] C. Albanese and G. Salzano, "Europe's Biggest Utility Bets on Italy Green Power Revival," Bloomberg, 4 Dec 17.

[5] K. Bradsher, "China Looks to Capitalize on Clean Energy as U.S. Retreats," New York Times, 5 Jun 17.