Enel plans EUR 3 billion investment for geothermal in Italy

Chiusdino geothermal plant, Tuscany/ Italy (source: Enel Green Power)

Enel Green Power (Enel) has announced an investment plant of EUR 3 billion for the geothermal sector in Italy, including the construction of two new plants by 2030 with a total installed capacity of 200 MW. However, this investment is contingent on the existing of the company’s existing geothermal concessions in Tuscany beyond the 1-year period that had already been granted.

Eight geothermal concessions in Tuscany that are held by Enel were originally due to expire by 2024. The fate of these expiring concessions was already being deliberated back in 2022, but the eventual outcome was met with widespread criticism – the deadline was extended by a mere one year to 31 December 2025.

The extension was described as being “the time strictly necessary to complete the reorganization of the sector legislation.” Thus, it is not a final indication of whether the concessions will be extended for the current owners, or if they will be offered in an open tender.

The one-year extension is not in line with Enel’s investment plan of putting up two new geothermal plants between 2024 and 2030 and upgrading and modernizing its existing plants. For this plan to materialize, the concessions have to be extended by at least 15 years.

The region of Tuscany currently gets about one-third of its electricity needs from the geothermal power plants. In addition, geothermal heating is supplied to greenhouses and companies. The geothermal features of Tuscany have also proven to be effective attraction sites for tourists.

Source: Morning Star and T24