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Renewables in Italy Overtake Fossil Fuels for First Time

UNITED STATES - JUNE 03: Generators operate in the Arizona sector hydroelectric power plant of Hoover Dam near Boulder City, Nevada, U.S., on Wednesday, June 3, 2009. There are 17 generators at the dam that that convert mechanical energy into electrical energy. Investors poured $155 billion into renewable power projects worldwide last year, exceeding for the first time new spending on fossil fuel-based technologies like coal-fired electricity plants, the United Nations said. (Photo by Ronda Churchill/Bloomberg via Getty Images) (Bloomberg/Source: Bloomberg)

(Bloomberg) -- Italy’s power generation from renewables overtook fossil fuel sources in the first half of the year amid stronger hydropower activity, according to the national grid operator.

Renewables accounted for 44% of Italy’s electricity demand, according to a Terna statement, which is a record on a half-year basis. Hydropower generation jumped 65% to nearly 26 terawatt-hours, while output from fossil fuels dropped by 19%.

While the greater contribution from clean energy sources is likely to be welcome news as Europe seeks to curb emissions, hotter-than-normal temperatures this summer are leading to higher electricity consumption in the country. Italy has been falling back on traditional thermal capacity to meet demand for air-conditioning.

Italy has among the most expensive wholesale power prices compared to large European economies, largely due to lower solar and wind capacity. Italy’s day ahead power contracts have been trading at more than double those of Spain so far this year.

--With assistance from Eamon Akil Farhat and Anna Shiryaevskaya.

©2024 Bloomberg L.P.