Buildings (residential and commercial) is the largest energy consuming end-use sector in Italy accounting for an approximate 44% share of final energy demand in 2019, followed by transport (32%), industry (22%) and others (2%). In 2019, primary energy in Italy was mainly sourced from fossil gas (42%), oil (33%), renewable energy (20%) and coal (4%).
Fossil gas contributed to around half of electricity generation in Italy in 2021, the share of which has been increasing in the recent years. In contrast, the share of coal has been declining, reaching less than 5% in 2021. Italy plans to phase out coal by 2025.,
Italy was the third-largest fossil fuel importer in the EU after Germany and the Netherlands in 2019, primarily because of its gas imports. With the Russian invasion of Ukraine – Russia being Italy’s primary supplier of natural gas – the country is now being forced to review its strategy. Italy has significant renewable energy resources which could be exploited to accelerate the transition from fossil fuels, though the initial response to the dependency on Russian gas has been focused on diversifying its gas suppliers.
While Italy has great potential for renewable energy generation. Hydropower and solar are currently its largest source of renewable electricity. Italy aims to install 52 GW of solar power and 19.3 GW of wind power by 2030 respectively, and the renewable share of electricity generation has been rising steadily in the last decade, reaching approximately 17% in 2019.,
Italy aims to spur decarbonisation in remaining sectors through an increased uptake of electric vehicles and modal shift in the transport sector, as well as buildings renovation and efficiency improvements.,