Overview

To meet its overall energy needs Italy resorts to natural gas (35%), oil and petroleum products (38%), renewables (20%), coal and other solid fuels (3.4%), imported electricity (3%), and non-renewable waste (approx.1%).  Italy continues to invest in energy infrastructure and development, both in traditional fossil fuels and renewable energy, seeking to position itself as an energy hub for Europe.  The country has very ambitious energy transition plans, with a zero emissions goal to be reached by 2050 and fossil fuels to be gradually phased out, especially in the power generation sector, where the goal is to generate electricity solely by renewable sources (80%) and nuclear power (11 - 20%) by 2050. Until then, natural gas will remain fundamental to integrate the contribution of intermittent renewables sources to the grid and to support the energy transition by substituting other fossil fuels that have a heavier carbon footprint.  In 2024, 42.5% of electricity demand in Italy was met by non-renewable energy sources, 41.2% by renewable sources, and the remaining share by imports.     

Italy is the third largest market for natural gas in Europe (after Germany and the UK) and the second largest importer (after Germany), importing around 95%. of the natural gas it consumes.  In 2024, Italy imported almost 59 billion cubic meters (bcm) of gas, mainly from Algeria, Azerbaijan, Qatar, the Unites States, Norway, The Netherlands and Libya, with imports from Russia representing a negligible portion of the mix. About 75% of the gas was imported via pipeline (with six entry points) and 25% was in the form of Liquefied Natural Gas (LNG), carried by vessel to regasifiers (five total) that then convert it into gaseous form.   

2024 was a significant year for renewable energy in Italy. The country increased its renewable capacity by almost 7.5 Gigawatts (GW), surpassing Government growth targets for the year, reaching a total of 76.6 GW of installed renewable capacity, 37.1 of which from solar and 13 from wind. Photovoltaic production reached a historic high of 36.1 terawatt-hour (TWh) (+19.3% compared to 2023) and hydroelectric production grew by 30.4%, reaching 52 TWh. For the first time in history, renewable sources matched the contribution of fossil sources to electricity production, covering 41.2% of Italy’s electricity needs– compared to 37.1% in 2023.  Italy’s national plan for energy and climate (PNIEC) emphasizes a decisive acceleration of renewables, aiming to remove regulatory bottlenecks and speed up permits. PNIEC aims for renewables to make up 40% of gross final energy consumption by 2030, an ambitious objective considering that in 2023 renewables covered about 20% of final energy demand in Italy. Specifically, PNIEC calls for renewables to make up 65% of electricity consumption by 2030. PNIEC’s target for renewable capacity in operation by 2030 is 131 GW, combining contributions from wind, solar, hydroelectric, geothermal, and bioenergy.  

Opportunities  

Liquefied Natural Gas 

Liquefied Natural Gas (LNG) represents an ever-growing portion of the natural gas imported into Italy. The urgent need for European countries to replace Russian pipeline gas imports, which dropped dramatically due to the conflict in the Ukraine, together with colder Winter 2025 temperatures leading to higher demand for natural gas, have generally increased opportunities for LNG shipments to Europe, and in particular shipments from the USA. This is true for Italy as well.  At the onset of the conflict in the Ukraine, Italy immediately started seeking alternative sources to replace Russian natural gas through pipeline imports from other countries and through LNG shipments.  Moreover, LNG is a transition fuel in line with Italy’s decarbonization objectives, offering a cleaner alternative to traditional fossil fuels and helping to bridge the gap toward a low-carbon future while ensuring energy security.  

In 2024, LNG made up 25% of natural gas imports into Italy (vs. 23% in 2023 and 11% in 2022), amounting to approximately 14.6 billion cubic meters (bcm).  LNG imported in Italy in 2024 originated from Qatar (45.21% - approx. 6.6 bcm), the United States (34.93% - approx. 5.2 bcm ), Algeria (13.70% - approx. 2 bcm), Russia (1.37% - approx. 0.2 bcm), other countries (4.79% - approx. 0.7 bcm). During the first half of 2025, LNG accounted for 30% of Italy’s natural gas imports. 

U.S. LNG imports constitute an ever-increasing portion of total LNG imports into Italy (approximately 35% in 2024, 33% in 2023, 21% in 2022 and 9.6% in 2021). The United States became Italy’s top liquid natural gas (LNG) supplier in 2025, accounting for 45 percent of deliveries through July 2025.  
   
On September 8, 2025 U.S. Secretary of the Interior Doug Burgum met with Italian Energy Minister Pichetto Fratin and signed a commitment to further strengthen U.S. - Italy ties and consolidate a joint declaration signed by President Trump and Italian Prime Minister Meloni in April 2025 to cooperate and enhance energy security and promote innovation in the energy sector with LNG and the use of AI. 

All seven (7) active U.S. LNG export terminals located on the East Coast and the Gulf of America are currently shipping LNG to Italy.  Information about Italian LNG offtakers is confidential, however several major international and Italian energy firms are active in the Italian market in the purchase of LNG. 

There is high worldwide demand for U.S. LNG and thus Italian firms are encouraged to secure supplies from the USA through long term contacts to avoid future supply disruptions. There is also demand for technologies that can reduce methane and CO2 emissions and can contribute to the overall functioning of LNG regasifying plants (gas turbines, pumps, valves, compressors). 

Solutions for Powering Data Centers 

Italy hosts around 12% of Europe’s 1,300 data centers, with installations growing at a double-digit rate, much higher than other European hubs such as Frankfurt, London, Amsterdam, Paris and Dublin which stand between 4% and 8%. Most (70%) of the data centers in Italy are located in Northwestern Italy, in the Novara, Monza and Pavia triangle, with Milan at the center. Over 80 new projects and 160 data centers have already been built and are in operation, Investments into Italy’s data centers will double to 10 billion euros ($10.3 billion) in the 2025-2026 period. Data centers are “energy-intensive”, both in terms of data processing and server cooling, as servers processing a high amount of data per second heat up easily.  Data centers containing data for AI operation consume even more energy than “standard” data centers, both in terms of processing energy and cooling energy.  Data centers in Italy constituted 3% of national electricity demand in 2024 (513MW), with demand expected to double by 2028 (1,000 – 1,200 MW).  The first data centers in Europe were built in cities of central-northern Europe, both because they were generally more developed and because it was less expensive in terms of energy to cool the servers.  Now these same pioneering countries in Europe are slowing down the opening of new data centers due to fears of excessive energy consumption and to preserve network stability. To do this, they have resorted to stringent regulations, which are not yet present in Italy, making the country particularly attractive for new projects. Solutions to meet growing energy demand from data centers include renewable energy, “blue power” electricity from gas plants equipped with carbon capture technology to reduce CO2 emissions, fuel cells and in the future nuclear energy (Small Modular Reactors - SMRs).   

Energy Storage 

As Italy’s energy mix is increasingly composed of variable renewable energy sources, electricity storage is needed to integrate power generated by renewables into the national grid and make it available when sun and wind energy are not accessible, as well as to avoid congestion in the power grid since most of the renewable production originates in Southern Italy but is consumed mostly in the north. Therefore, the national plan for energy and climate (PNIEC) also provides for the installation of new energy storage infrastructure with the aim of reaching 22.5 GW of installed storage capacity by 2030. PNIEC envisages the 2030 energy storage scenario to consist of 8 GW of hydroelectric pumping systems (most of which are already in place), 4GW of distributed energy storage systems (i.e. smaller scale storage systems integrated with residential, mostly photovoltaic plants – many of these are also already in place) and 11GW of stand-alone utility scale storage facilities (which need to be developed).  In order to procure electricity storage capacity (batteries and other eligible storage technologies) the Government of Italy has set up a “Mechanism for the Procurement of Electric Storage Capacity” (“MACSE”) that will be managed by Terna (Italy’s transmission system operator). MACSE consists of auctions where bidding companies have the capability to build storage capacity and make it available for the grid.  Auction winners sign a 15-year deal with fixed yearly payments (a “capacity premium”). In return, they must build the storage by the delivery year (e.g. 2028 for the first tender), keep it available to Terna when needed and follow technical rules and grid dispatch orders. The end goal is to build around 50 GWh of battery storage by 2030, with auctions held each year until the target is met. 

Nuclear Energy Production and Decommissioning   

On March 3, 2025, Italy’s Council of Ministers approved a draft law directing the government to adopt a series of legislative decrees to reintroduce nuclear power, which Italy shut down following a 1987 referendum. Gilberto Pichetto Fratin, Italy’s Minister of the Environment and Energy Security, said the country’s electricity demand will nearly double by 2050, reaching 583 terawatt-hours (TWh). “Such a boost cannot simply be met with an increase in renewable energy capacity,” he warned. Italy’s National Energy and Climate Plan (PNIEC), published in July 2024, calls for developing a nuclear energy program to meet between 11% and 22% of domestic energy demand by 2050. Rapid growth in data centers across Italy also drives the government’s push for nuclear power. 

The bill gives the government 24 months to establish a comprehensive framework of laws, reforms, and regulations to enable the development of nuclear energy and related industries. Italy plans to invest in third- and fourth-generation reactors, including small modular reactors (SMRs) and larger power plants. 

In October 2024, Minister Fratin said Italy was negotiating with several foreign and domestic companies as technology partners for a state-backed firm that will build advanced nuclear reactors in the country. In May 2025, three Italian firms—Enel, Ansaldo Energia, and Leonardo—formed Nuclitalia to lead Italy’s nuclear program. The government owns a controlling or influential stake in all three companies. Enel holds 51% of Nuclitalia, Ansaldo Energia 39%, and Leonardo 10%. Nuclitalia will research advanced technologies and explore market opportunities for both large reactors and SMRs. 

In 2009, the United States and Italy signed a broad agreement “For Cooperation in Civilian Nuclear Energy Research and Development. The deal remains in force and covers collaboration on next-generation and innovative power plant designs, manufacturing, construction, maintenance, and decommissioning technologies. It also includes advanced nuclear fuels and waste treatment, storage, and disposal technologies.

Resources 

Italy’s Integrated Plan for Energy and Climate 
Snam (Italian gas infrastructure operator) 
Terna (Italian electrical grid operator) 

U.S. Commercial Service Italy:
Federico Bevini, Commercial Specialist 
U.S. Commercial Service, U.S. Consulate Milan 
Tel: +39 02 6268 8520 
E-mail: federico.bevini@trade.gov 

For nuclear industries: 
Joshua Lawrence, Commercial Specialist 
U.S. Commercial Service, U.S. Consulate Milan 
Tel: +39 02 6268 8339 
E-mail: joshua.lawrence@trade.gov