Photovoltaics between regulations and market design
Insights from the Energy & Strategy Group conference on the roadmap for the energy transition
Photovoltaics continues to drive the growth of renewables in Italy. According to the Renewable Energy Report 2025 by the Energy & Strategy Group of the Politecnico di Milano, more than 5 GW of new installations were added in the sector for the second consecutive year in 2024, bringing the annual incremental capacity to 6,027 MW (+15% compared to 2023). This is a significant result, driven especially by medium-to-large-scale installations, which alone account for over 43% of the new capacity. However, to meet the 2030 targets – which set the goal of 79 GW of photovoltaic capacity – the current annual growth rate will need to accelerate further.
Among the speakers at the event was Michela Demofonti, Head of Institutional Affairs & External Communication at EF Solare Italia, who provided a detailed overview of the status of utility-scale photovoltaics in Italy and the outlook for agrivoltaics. Regarding the regulatory and market context, EF Solare Italia expressed an overall positive assessment. The sector is showing encouraging signs both in terms of growth and in the availability of instruments supporting the bankability of investments.
“Our assessment of the regulatory framework for utility-scale photovoltaic systems is overall positive for three reasons.
First, the market is expanding rapidly — in 2024 we saw 6 GW of new installed capacity, with over 40% coming from utility-scale plants.
Second, the regulatory framework is moving towards Contracts for Difference (CfD), and the state guarantee is becoming an enabling factor that accelerates the bankability of projects.
Third, Italy is also ahead in terms of system flexibility and adequacy, thanks to mechanisms such as the capacity market and MACSE, which are crucial for the development of storage,” explained Michela Demofonti during the roundtable discussion, which included Pierluigi Nalin, Director of Renewable Development at Edison, Michele Pizzolato, Head of Regulatory Affairs at Eni Plenitude, and Federico Gallo, Senior Consultant at En-Creative for Elettricità Futura.
However, Demofonti emphasized that this positive scenario unfolds along two separate dimensions, which must advance in a coordinated manner: “On one hand, there is the regulatory process underlying the development of installations across the territory, which is progressing in a non-linear way — just think of the regulatory changes following the enactment of the Decree on Suitable Areas (DM Aree Idonee). On the other hand, the framework of market mechanisms supporting the energy transition is one where Italy is among the most advanced countries in Europe. It is therefore necessary to coordinate these two dimensions because without orderly and coherent development of renewables across the territory, we won’t be able to take advantage of the favorable route to market that is emerging.
On a political level, it is crucial to reopen the dialogue between the State and the Regions to identify areas suitable for energy production (suitable and acceleration areas) and to quickly complete the regulatory framework by implementing a coherent market design — both on the market and grid sides — to avoid placing the burden of the transition on renewables.”
EF Solare Italia placed particular emphasis on agrivoltaics — a technology in which the company is a pioneer, and which today represents a tangible opportunity to combine decarbonization with the enhancement of agricultural land.
“We have over a decade of experience in photovoltaic greenhouses — our agrivoltaics 1.0 — and over the years we have developed an innovative model. Agrivoltaics is a winning solution that combines the need for decarbonization with the needs of the primary sector. The Agrivoltaics Decree under the NRRP (PNRR) saw strong participation from operators, with the initial quota significantly exceeded. However, it is a time-limited decree. Unfortunately, at present, neither the FER 2 nor the FER X decrees include specific quotas for agrivoltaics, despite its added value.”
A promising technology that requires investments and long-term political vision, as she highlighted: “Yes, agrivoltaic systems are slightly more expensive than ground-mounted photovoltaics, but this is due to the integration of two sectors, creating value and employment opportunities also for farmers. While we do see a willingness from policymakers and local administrations to promote this technology, we do not see concrete support in the regulatory mechanisms currently being defined. It is crucial to provide a medium-term vision to stimulate investment and support this development trajectory.”
EF Solare Italia’s contribution to the Energy & Strategy event focused on the need for a coordinated and integrated approach to the energy transition. The combination of a stable regulatory framework, effective market instruments, and shared territorial planning is key to unlocking the full potential of photovoltaics in Italy — including its most innovative applications, such as agrivoltaics. EF Solare Italia will continue to actively contribute to the institutional and technical dialogue, with the goal of promoting sustainable and structured development of renewable energy, in service of the country.