The role of agrivoltaics in Italy’s energy sector is becoming increasingly significant. Currently, this technology contributes 11% of the country’s renewable electricity, with 48,000 plants, an installed capacity of 5 GW, and a production of 13 TWh, according to 2023 data. However, the growth potential is even greater.

According to the report by the Confagricoltura General Confederation of Italian Agriculture, presented on February 11 in Rome with the support of Enel, renewable energy production from agrivoltaics could reach 22% of the national total if all available land is included, even non-agricultural areas.

The Observatory’s report, developed with EY’s support, analyzes public databases, market reports, and interviews with industry experts, along with a sample of 400 medium- and large-sized agricultural companies in Italy. The study provides a detailed overview of the sector and its growth opportunities through 2030.

Bioenergy, Photovoltaics, and Hydroelectric Power: The Keys to Growth

Currently, Italy’s installed renewable energy capacity exceeds 57 GW, coming from sources such as bioenergy, hydroelectric, and photovoltaics, with a high concentration in the Po Valley region (Lombardy, Emilia-Romagna, Veneto, and Piedmont). The agrivoltaic sector accounts for 5 GW of this total capacity, a figure that is expected to grow significantly in the coming years.

According to the report, the sector’s future will rely on the expansion of agrivoltaics, the development of renewable energy communities, and the optimization of biomethane use. These strategies, combined with electrification and digitalization, will help maximize efficiency and increase renewable energy production in agriculture.

2030: A Horizon of Expansion and New Challenges

Looking ahead to 2030, the Observatory’s estimates predict substantial growth in renewable energy in agriculture, reaching 10% of total electricity production, with the potential to reach 22% if all available land is included. This progress will be driven by initiatives such as the National Recovery and Resilience Plan (PNRR), modernization of the electrical grid, and strengthened incentives for agroenergy.

However, challenges remain. The end of the PNRR in 2026 necessitates new strategies to ensure funding and stability for agroenergy projects. Additionally, regulatory issues and grid access remain significant barriers for many agricultural enterprises looking to expand their renewable energy generation capacity.

In this context, the Confagricoltura Agroenergy Observatory was established to monitor sector development, identify successful models, and propose strategies to strengthen agroenergy as a pillar of Italy’s energy transition. “We want to highlight the synergy between the agricultural and energy sectors, a key relationship for sustainability and national competitiveness,” concludes Giansanti.

An Evolving Regulatory Framework to Drive Agroenergy

The development of agroenergy in Italy is supported by an evolving regulatory framework designed to incentivize renewable energy production in the agricultural sector. The “Aree Idonee” Decree and the Agricultural Law Decree have introduced key provisions to facilitate the installation of renewable energy plants on agricultural land, establishing criteria for project locations and limiting the use of farmland for large-scale energy installations.

Additionally, the Ministerial Decrees FER 2 and FER X play a central role in promoting innovative technologies and ensuring the economic viability of agroenergy. While FER 2 supports electricity generation from renewable sources with high production costs, such as biogas and biomass, FER X is designed to foster the development of renewable energies with costs closer to market competitiveness. Both mechanisms include specific incentives for agrivoltaics and biomethane, which are key elements in the decarbonization of the agricultural sector.

Key Incentives for Sector Expansion

As part of the National Recovery and Resilience Plan (PNRR), initiatives such as Parco Agrisolare and the Agrivoltaic Program provide funding for the installation of solar panels on agricultural land and rural infrastructure rooftops. These measures aim to promote energy self-consumption and efficiency, enabling agricultural businesses to reduce their dependence on the electricity grid and maximize the profitability of their land.

Furthermore, the growth of renewable energy communities (CERs) is driving a new business model in the sector. These communities allow farmers and small businesses to share locally generated renewable energy, optimizing consumption and reducing operational costs. However, the expansion of these communities still depends on regulatory adjustments and the simplification of administrative processes for their implementation.

Regulatory Challenges and Opportunities for Improvement

Despite progress in regulations and incentives, the agroenergy sector still faces significant challenges. Uncertainty regarding the continuity of incentives after 2026, following the completion of the PNRR, could slow the expansion of agrivoltaics and biomethane if new financial support mechanisms are not established.

Another key obstacle is connectivity to the electricity grid, as many agricultural businesses struggle to obtain connection permits and access to infrastructure. Additionally, the need for more streamlined administrative procedures is a recurring concern in the sector, as bureaucratic hurdles can significantly delay the installation of new renewable energy plants.

In this context, the Confagricoltura Agroenergy Observatory will play a crucial role in monitoring the impact of regulations and proposing solutions to facilitate sector growth, ensuring that agroenergy remains a key pillar in Italy’s energy transition.