Commodity market report

Italy power and renewables market long-term outlook H1 2017

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Report summary

As a result of strong, incentive-driven growth in renewables – particularly solar PV – in recent years, Italy has met, and exceeded, its original 2020 target for renewables in the power sector. Italy's continuing reliance on gas-fired generation has contributed to its power prices being higher than those in neighbouring countries, although the market’s dependence on imported power is also a major factor in price formation.

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