The European Commission has greenlit Italy's "Energy Release 2.0" scheme, a state-backed initiative designed to support power-intensive industries while accelerating the country's green transition. Announced by Italy's Minister for the Environment and Energy Security, Gilberto Pichetto Fratin, the program will provide electricity at a fixed price of €65 per megawatt-hour (MWh) in its initial phase—a significant reduction from Italy's 2023 average price of €108.5/MWh. The approval follows a review by the Commission, which confirmed the scheme's compliance with EU internal market and state aid rules.

In exchange for the subsidized electricity, beneficiaries are required to reinvest in new renewable energy capacity. This can be achieved either through direct investments or by participating in auctions managed by Italy's energy agency, GSE. The initiative aims to address the competitive disadvantage faced by Italian industries, where energy prices have been more than 35% higher than the European average, according to Confindustria, Italy's main business lobby.

"This is not a privilege but a tool to protect jobs, strengthen strategic supply chains, and attract investment," Pichetto Fratin stated, highlighting the scheme's broader economic and environmental objectives. The minister also acknowledged the European Commission's "constructive dialogue" in finalizing the program.

The "Energy Release 2.0" scheme is part of Italy's broader strategy to balance industrial competitiveness with its commitment to renewable energy expansion. By linking subsidies to green investments, the government aims to foster long-term sustainability while mitigating the immediate financial pressures on energy-intensive sectors. The program is expected to play a pivotal role in Italy's efforts to meet its 2030 renewable energy targets and reduce reliance on fossil fuels.