The challenges that the NRRP and the European 2030 targets set for our country are certainly ambitious: accelerating decarbonisation through the development of renewables, increasing efficiency in final uses and the electrification of consumption in areas such as heating and mobility. All of these objectives require substantial resources.
On the other hand, the energy transition, with its effects on the country’s renewable and ‘smart’ energy technology supply chain, could have a positive impact on the whole of Italian industry and on its ability to compete internationally.
The picture revealed by the study is one of a national industrial capacity that is still limited in some basic renewable technologies (such as photovoltaic modules and wind turbines).
And yet our country has many operators in sectors such as components, O&M (Operation and Maintenance) services, EPC (Engineering Procurement Construction) engineering, and ‘smart’ and energy-efficient solutions, in which there are many examples of excellence and innovation that are competitive internationally.
The transformation of plant engineering in the electricity field has also influenced the electrical engineering and components industry, bringing some products, such as photovoltaic panels, to the status of near-commodities, and has opened up market segments to innovative, high-quality products and services, with new prospects for national production infrastructure. The study cites as examples components for home automation systems, compact and easy-to-install electric vehicle charging stations, innovative photovoltaic modules and components for wind turbines.
In several segments, therefore, Italian companies possess skills and industrial capabilities that make them competitive internationally.
What is still missing, however, is a systemic vision, a national industrial policy that makes the most of Italy’s intrinsic talent and exploits every opportunity for economic and employment growth.
Towards 2030: the Italian supply chain for renewable and smart energy technologies
This is precisely the direction taken by the Enel Foundation study, which provides an analysis of the renewable and ‘smart’ energy technology supply chain in Italy, assesses its potential and prospects in light of the EU 2030 targets, and finally proposes policies to foster its growth.
The Enel study estimates that at least 790 companies linked to the renewable and ‘smart’ energy supply chain are currently operating in Italy. Of these, almost 400 specialise in this sector. Overall, the value of these companies’ output amounts to €12.4 billion, or 0.7% of Italian GDP, with a presence that is already good in grid technologies, power generation components, geothermal and heat pumps, but still limited in the basic building blocks of the energy transition such as photovoltaic modules, wind turbines and batteries.
The study is divided into four parts:
1. The current picture and the evolution of the supply chain. This first section examines the current state and future development of the renewable technology and smart energy industry in Italy, through a detailed review of the companies currently operating in the sector.
2. Technology investment needs to 2030. This section assesses the need for technologies, components and services introduced by the 2030 targets in order to realise the growth potential of the country’s industrial resources in future energy scenarios.
3. The development potential of Italian industry. The section examines the benefits made possible by achieving the 2030 targets, in line with the ‘Fit for 55’ and REPowerEU goals, in terms of social and economic impact.
- An Italian strategy for the technology supply chain. From the analysis of development potential, policy proposals are drawn up to foster the growth of the smart energy supply chain in Italy, raising awareness among policy makers, institutions and consumers of the opportunities arising from the development of renewables and smart energy.
Scenarios for 2030: increasing production capacity and strengthening the supply chain
In the REPowerEU scenario, 85 GW of additional renewable energy generation capacity is needed. This growth must be matched by robust development of the Italian smart energy supply chain.
This twofold strategy – growth in renewable capacity and development of the supply chain – can unlock up to €361 billion in economic benefits and create up to 540,000 jobs.
These are ambitious goals, but according to the study they are within our country’s reach.
Provided that Italy swiftly implements a clear, concrete and farsighted national strategy, aimed at creating the conditions both for the necessary investment and for the development of a competitive industrial capacity.
Central and no longer postponable at this stage will be the reform and modernisation of national infrastructure, in terms of digitalisation and cutting red tape.
The second urgent point is precise, well-calibrated and unambiguous planning of the energy transition that gives the market the certainty it needs.
Electrification, circularity, human resources skills, support for research, technology transfer and entrepreneurship are other fundamental elements in designing a strategy for the Italian renewable and smart energy technology supply chain.
The Plan’s conclusions: a new industrial sector for environmental sustainability
In conclusion, the future outlined by the Enel Foundation study is not merely the possibility of fostering the growth of a specific sector or encouraging the development of a few companies. A far broader challenge and opportunity are at stake: launching an entirely new industrial sector that will guarantee Italy environmental sustainability and energy autonomy.
(Source: Enel Foundation)
Download and read the study here:
https://www.enelfoundation.org/content/dam/enel-foundation/topics/2023/02/EF_Filiere%20tec%20ren%202030%20finale.pdf
