One-year extension of geothermal concessions in Tuscany, Italy met with criticism

View from Santa Fiora, Tuscany, Italy (source: flickr/ To Tuscany, creative commons)

Of the 33 active geothermal plants in Tuscany, Italy, eight are under concessions that are due to expire by 2024. These are the Bagnore, Canneto, Chiusdino, Larderello, Lustignano, Piancastagnaio, Riosecco, and Travale sites, all owned by Enel Green Power Itali Srl.

After some deliberation, the concessions were given a one-year extension with the deadline now set to 31 December 2025. This is after the approval of an amendment to the Public Entities Decree (DL 51/2023) that was proposed by Riccardo Zucconi, the deputy for the Fratelli d’Italia.

However, there was still no decision on whether the concessions will remain with the current operator after the deadline, or if they will offered under a public tender. In the context of this looming uncertainty, the decision to extend the concessions by one year has been criticized by the National Association of Italian Municipalities of Tuscany (ANCI Toscana) and described by Geothermal Manager Federico Balocchi as the “worst solution to be put in place at the moment.”

Statements were also made by Luca Lucietto, secretary of FLAEI-CISL Toscana, and Ciro Recce, and secretary general of CISL Toscana, both Tuscany-based trade unions. “The solution cannot come from short-term extensions like this. It is necessary to allow the concessionaire to invest from a long-term planning perspective.” said Recce.

“The only hope is that the extension was designed to give the bodies in charge time to prepare a substantial modification of the current legislation which imposes the tendering of geothermal concessions by the end of 2024,” added Lucietto.

The statement notes that, in other states, a public tender of the concession is only held if the current operator is no longer interested in its extension. With the current energy crisis, substantial investment in the geothermal power plants is expected only if the concession are extended substantially – at least 15 years.

“The Government and Parliament must review the decision to unconditionally extend the deadline. Otherwise, the territories involved will remain without a strategy without answers,” explained Balocchi. “Extending the concession multiple times presents the risk of dragging on an unsustainable situation, stopping investments, and preventing the implementation of plan to relaunch the economy of geothermal territories.”

Source: Italy24, CISL, and La Nazione