The Italian renewable energy sector aims to become a benchmark for offshore wind power. The upcoming Ports Decree, which designates Augusta as a priority hub for the country, along with the positive environmental impact assessment (V.I.A.) decrees for 2.2 GW of new projects (the latest MASE decree for 1.1 GW is in preparation), represent decisive steps toward consolidating Italy as a Mediterranean reference point.

This is affirmed by the Italian Association of Offshore Renewable Energies (AERO). Yesterday, Fulvio Mamone Capria, President of AERO, analyzed the country’s potential during the press conference launching ECOMED Green Expo of the Mediterranean, the trade show dedicated to matching supply and demand for technologies and ideas that promote sustainability and circularity.

With the FER2 decree and auctions for 3.8 GW, the sector is preparing for an unprecedented acceleration. The strategic role of the ports of Augusta, Taranto, Brindisi, and Civitavecchia will be crucial to ensure the assembly and logistics of wind turbines, contributing to the development of an Italian industrial supply chain.

The FER2 decree is expected to boost contracts for difference (CfD) with a reference price of €185/MWh. However, there are concerns within the sector about the financial viability of projects, given the significant increase in CAPEX in recent years and inflationary pressures that are affecting returns on investment.

Despite the high capital expenditure associated with offshore wind, costs are expected to decline in the coming years as the technology matures, reducing the levelized cost of energy (LCOE) and impacting tariff structures.

On the other hand, it is worth noting that the Ministry of the Environment and Energy Security (MASE) launched a procedure (Legislative Decree 181/2023) to establish a national strategic hub for the design, production, and assembly of floating platforms and electrical infrastructure for offshore wind. Although the deadline for submitting proposals expired in May 2024, there has been no official confirmation regarding the selection of ports or the interministerial decree that should define the areas, infrastructure works, and funding mechanisms. As a result, the sector is waiting for the Ports Decree to drive forward investments in offshore wind energy.

Offshore wind and employment development

The employment impact, AERO reiterates, will be substantial, with thousands of new hires among engineers, specialized technicians, and maintenance workers. Italy has the opportunity to establish itself as an energy hub in the Mediterranean, leveraging synergies within the national supply chain and aiming to supply floating offshore vessels to Mediterranean, Balkan, and African countries.

“It is essential that our country strengthens its production chain, involving strategic players such as universities, startups, and companies to create a robust and internationally competitive industrial ecosystem,” they stated.

“The growth of floating offshore wind energy represents a historic opportunity for Italy. Today, we have the tools to make our country a leader in the energy transition, creating a domestic industry that generates employment, innovation, and value. The success of this transformation will depend on the ability of institutions and businesses to work together to build a sustainable future,” said Mamone Capria.

It is estimated that a single 1 GW offshore wind farm could create up to 2,000 jobs during construction and 300 permanent jobs during operation. It is worth noting that Italy could reach around 10 GW of installed capacity between 2030 and 2035, with the potential to exceed 20 GW by 2050.