Italy Awards Solar Capacity in First ‘Not Made in China’ Auction

Reuters

15:33 JST, December 24, 2025

MILAN (Reuters) — Italy awarded more than 1.1 gigawatts of capacity to 88 projects in its first auction exclusively for solar projects built without equipment manufactured in China, setting an average price of €66.38 per megawatt hour.

The tariff is 17% higher than the average price for a renewable auction earlier this year that had no restrictions on equipment origin, according to data from Italy’s electricity services agency.

The auction is among the first in Europe to apply non-price criteria linked to the European Union’s Net-Zero Industry Act, a package of measures that aims to curb reliance on low-cost renewable components from China.

Over 95% of solar modules installed in the European Union are imported, with China supplying about 94% of the modules and cells in 2023, according to consultancy firm Green Horse Advisory.

The list of winners for the auction includes Enel Green Power, J.P. Morgan-backed developer Sonnedix and KKR-backed power group ContourGlobal.

“This is a strong result for the Italian system and for energy consumers,” Sonnedix Representative Director for Italy Mario Volpe told Reuters.

Italy’s recent auctions on renewable energy combined with the award of the battery capacity in October are attracting significant investment, estimated at some €10 billion ($12 billion), with many projects entering the construction phase, Volpe added.

Under the auction framework, developers must bring plants online within 36 months.

Italy awarded in total nearly 9 gigawatts of renewable capacity through this auction and the one completed in early December for ordinary solar and wind plants.

“These schemes reduce curtailment risk, bring affordable and stable capacity into the system, and lower the cost of capital for new clean energy investments,” said Paola Agrati, Country Manager Italy at ContourGlobal.