The energy strategy for the future that Italy needs

A question that should be asked regarding the competitiveness of Italian industry is whether the country’s companies have access to energy goods at prices not too dissimilar to their European competitors. The answer is that energy supply still represents a source of uncertainty if not disadvantage for the national economy. And this is because, faced with Europe’s difficulty in adopting a common policy – as seen with the lack of agreement on the price cap and with the diversified policies for price subsidies within the European Union – Italy must still define an energy strategy for the future.

The Meloni government is trying to exploit the new world energy order by proposing itself as a bridge between the north and south of Europe after Russia’s aggression against Ukraine has erased the axis between east and west. Indeed, according to some analysts, Italy could take on a role as guarantor for European energy security. But these processes are very slow and in the meantime each country goes its own way trying to benefit its own production system. Germany has focused on wind, photovoltaic and hydrogen and, in order not to be shocked by the closure of coal and nuclear power plants, is rediscovering gas power plants. France strengthens its choice on nuclear power and has managed to have it included in the European taxonomy (the grid of energy sources declared sustainable). Spain has chosen to diversify between photovoltaic, wind power and the opening of new plants (subsidized by the EU) for the import of liquefied natural gas. Norway and Sweden are looking for new alternatives to integrate hydroelectric production (the Swedish government, for example, has announced a plan to expand nuclear supply). In short, each state decided to proceed independently rather than commit to an overall European agreement. For its part, Italy is also a virtuous country because its heavy industry produces fewer emissions than, for example, Germany, and this thanks to the advanced technologies used in hard-to-abate sectors such as steel. But it does not yet have a plan to guarantee the energy needs of the next twenty years at price conditions comparable to those of other countries. Nor is it conceivable that the government, given the budget limits, will continue to endlessly provide subsidies to make prices more accessible to businesses and citizens. On the other hand, in recent weeks the European Commission has recommended that EU countries revoke energy subsidies to reduce public deficits. Thus the only path for Italy is to exploit the advantage of its geographical position and the presence of certain types of infrastructure to intensify gas imports. The prospects in this sense are favorable thanks to the expected increase in production within the Mediterranean Basin (Algeria, Cyprus, Egypt and Libya all plan to intensify the exploitation of gas basins) which will also have the effect of generating a price reduction. Eni could also play a leading role in this process, as it dominates technologies for the capture of C02 emissions and their reuse and already provides the service in foreign countries such as the United Kingdom. Until now there has been a certain prudence in the large-scale adoption of these technologies opposed at a European level by an extremist ideology which believes that gas, which is much less polluting than coal, cannot be used even if decarbonised. Without forgetting the need to develop a possible nuclear strategy for Italy too. Obviously, we should try to undermine certain resistance and address cost problems, but for Italy it is the only way to tackle the energy transition without ruining its industry. Beyond any debate, the modern world cannot exist without sectors such as cement, steel and chemicals, which are also essential in a green economy. It should not be forgotten that companies involved in the construction of wind farms and solar farms also produce C02. The transition must have its time.