Italy Wind Energy Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Italy Wind Energy Market Trends and Insights

Renewable‐energy auction pipeline expansion

Italy’s FER2 decree establishes two-way CfDs with a EUR 185/MWh (USD 199.8/MWh) strike price for offshore wind, eliminating merchant revenue uncertainty and facilitating project debt financing. The European Commission approved a EUR 35.5 billion (USD 38.3 billion) scheme spanning 2028 that encompasses 4.59 GW of new renewable capacity, including gigawatt-scale floating projects in the Adriatic and Ionian Seas.^{[1]Enerdata, “Italian Renewable Contract-for-Difference Scheme,” enerdata.net} Environmental approvals for Agnes-1-2 (700 MW) and Energia Wind 2020 (330 MW) show the funnel converting from intent to shovel-ready status, with late-2024 auctions moving projects toward 2025-2026 construction starts

NECP-aligned permitting reform momentum

Legislative Decree 190/2024 and the Testo Unico Rinnovabili introduce a single-window system and standardized environmental assessments, trimming the average approval cycle from fourteen to under five years.^{[2]Terna S.p.A., “Piano di Sviluppo 2024,” terna.it} The Energy Release 2.0 measure accelerates grid-connection procedures, while a presumption of overriding public interest limits legal challenges. Adoption of maritime spatial plans in October 2024 finally brings certainty to offshore zone delimitation.

Corporate-PPA pull from hard-to-abate industries

Italian steelmakers, chemical refineries, and automotive suppliers increasingly lock into 10- to 15-year renewable PPAs to hedge wholesale price volatility and meet Scope 2 targets. Recent deals include Iberdrola–Acciaierie Venete and Eni Plenitude–Autostrade per l’Italia, which support bankability for mid-sized onshore projects in Basilicata and Veneto. ETS carbon-price escalation and CSRD reporting rules widen the value gap between grid-average and zero-carbon power, accelerating industrial renewable procurement.

Floating-offshore wind resource unlock

Italy hosts 207.3 GW of technical floating potential, the third-largest globally, with Sardinia and Sicily offering the strongest resource.^{[3]European Commission, “Recovery and Resilience Facility—Italy,” ec.europa.eu} Flagship projects such as Renexia’s 2.8 GW Med Wind and the 1.11 GW Barium Bay array plan to deploy 15- to 18-MW turbines on semi-submersible foundations, bringing annual generation of up to 9 TWh per site. LCOEs near EUR 200/MWh (USD 216/MWh) remain above onshore levels but are expected to fall as blade lengths exceed 115 meters and supply-chain localization advances.

Lengthy local-permitting & NIMBY pushback

Despite national streamlining efforts, several regions slow or halt projects due to concerns over landscape and tourism. Sardinia’s temporary moratorium leaves 2.5 GW of authorized but unbuilt capacity, extending carrying costs for developers and widening the gap between tender awards and actual commissioning.

Solar-PV cost-competitiveness pressure

Utility PV LCOE fell 85% over 2010-2022, undercutting onshore wind in sunny Apulia and Sicily. Solar’s shorter construction lead times lure bidders in pay-as-bid auctions, compelling wind proponents to offer hybrid configurations or accept lower bid volumes in mixed-technology tenders.

Segment Analysis

By Location: Offshore Emergence Transforms Market Dynamics

Onshore assets dominated the Italian wind energy market, accounting for 12.96 GW in 2024, which is equivalent to 99.8% of the installed capacity. Yet offshore additions are forecast to lift the location’s share to about 5% by 2030 on a 75.5% CAGR, making it the sector’s prime growth engine. The Italy wind energy market is tracking a clear pivot as floating foundations overcome the peninsula’s steep continental shelf, bringing multi-megawatt turbines to waters 60-200 meters deep.

Early offshore projects, such as Med Wind, Krimisa, and Messapia, leverage 15- to 18-MW machines that reduce foundation counts, lower balance-of-plant costs, and shorten construction timelines. Regulatory certainty from maritime spatial plans and FER2 auction pricing aligns with EU recovery funds to unlock debt financing. Onshore growth continues through repowering in Puglia and Calabria; yet, incremental sites are scarcer, underscoring the rising importance of offshore wind for the Italian wind energy market.

By Turbine Capacity: Technology Shift Toward Higher-Efficiency Platforms

Turbines under 3 MW still account for 72.5% of 2024 installations, a legacy of first-generation onshore wind builds. This cohort drives a repowering wave that replaces aging hardware with 4- to 6-MW units, doubling output on fewer towers and trimming O&M costs. Above 6 MW equipment records an 18.8% CAGR, the fastest within the Italy wind energy market, and is projected to command nearly one-fifth of cumulative capacity by 2030.

Higher-rated turbines increase annual energy production and reduce project footprints, which is critical in a market where permitting agencies favor smaller visual impacts. Vestas’ Ferrandina order for 5 × V162-6.4 MW platforms illustrates the onshore shift toward large rotors. Offshore arrays will rely almost exclusively on >15 MW machines by the decade’s end, accelerating supply-chain localization for blades, nacelles, and floating substructures.

By Application: Utility-Scale Dominance with C&I Acceleration

Utility projects accounted for 90.3% of the Italian wind energy market share in 2024, driven by auction design and grid interconnect standards that favor 50- to 500-MW clusters. Their aggregated bidding power yields lower financing spreads and easier access to EU grants. Italy's wind energy market size for utility-scale is projected to reach 14.0 GW by 2030, even as total market growth moderates.

Commercial and industrial (C&I) demand grows at a 12.4% CAGR, catalyzed by triple-digit ETS prices and mandatory corporate disclosures. Many C&I buyers sign synthetic PPAs or acquire equity stakes in dedicated renewable energy projects, ensuring the traceability of renewable attributes. Community schemes remain small but stable, aided by cooperative financing mechanisms that channel local savings into micro-wind clusters.

Geography Analysis

Southern regions host about 90% of existing wind assets, with Puglia leading due to flat terrain, robust Adriatic-Ionian winds, and proximity to Taranto’s heavy-industry load. Sicily follows, though grid-export limits delay some projects. Sardinia offers world-class resources but faces a political moratorium that pauses fresh approvals until 2026.

The Italy wind energy market is gradually diversifying northward. Emilia-Romagna and Veneto secure fixed-bottom offshore sites in shallower hubs for clean power in the Mediterranean Adriatic waters, evidenced by the Agnes-1-2 and Rimini projects. Improved north-south transmission links cut balancing costs, allowing surplus southern output to reach Lombardy’s industrial belts.

Island interconnectors, such as the Tyrrhenian Link and the Sicily–Calabria upgrade, unlock stranded capacity and reduce curtailment. Together with HVDC expansion toward the Balkans, these projects integrate variable wind flows, enabling Italy to function as a Mediterranean hub for clean power.^{[4]Terna S.p.A., “Tyrrhenian Link Project Details,” terna.it}