EU approves Italian scheme to support energy-intensive industries

Italy's Energy Minister said that the European Commission had approved a scheme by the Italian government to support power-intensive industries as well as a green transition in Italy.

Gilberto Pichetto-Fratin, in a press release, said that the Commission considered "Energy Release 2.0" to be compatible with EU rules on internal markets and regulations on state aid.

In its first phase, the scheme will offer electricity at a price fixed of 65 euros per Megawatt-hour. According to statistics from the government, last year in Italy, the average price per megawatt hour was 108.5 euro.

The beneficiaries are required to repay the benefit by investing in renewable energy capacity either directly, or via third parties selected through auctions managed by Italy’s energy agency GSE.

Pichetto, in a press release, thanked the European Commission for their "constructive dialog" and said that this was not a privilege, but rather a tool used to protect jobs, improve strategic supply chains, as well as attract investment.

Last month, the head of Italy's largest business lobby Confindustria urged the government on urgent measures to reduce energy costs. He said that the industrial sector was suffering from electricity prices that were over 35% higher than average for Europe. Francesca Landini is reporting; Emelia Sithole Matarise is editing.

(source: Reuters)