(Finance) – The European Commission has approvedpursuant to EU state aid rules, a Italian plan worth 17.7 billion euros to support the construction and operation of a centralized electricity storage system. The measure contributes to achieving the objectives of the European Green Deal and the “Fit for 55” package, allowing the integration of renewable energy sources into the Italian electricity system.
The scheme notified by Italy will support the construction of electricity storage facilities with a cjoint capacity of over 9 GW/71 GWh, we read in a note from the EU executive. The program will last until December 31, 2033.
Under the scheme, aid will take the form of annual payments to cover investment and operating costs for developers of electricity storage systems. The list of eligible electricity storage technologies will be reviewed every two years to reflect technological developments. Currently, eligible technologies include electrochemical storage of lithium ions, as well as pumped hydroelectric storage facilities.
As part of the measure, a new “time-shifting trading platform“. Through this platform, storage capacity will be pooled and offered to third parties in the form of standardized time-shifting products.
“Today we approved this 17.7 billion euro Italian plan, which will significantly contribute to the EU’s decarbonisation and climate neutrality objectives – he commented Margrethe Vestager, executive vice president and responsible for competition policy – Centralized electricity storage offers flexibility and facilitates the diffusion of renewable sources. This innovative scheme will help accelerate the green transition, minimizing any distortions of competition.”