What is holding back the renewables sector in Italy?

While investor interest is strong and fundamentals are attractive, Italy’s deployment challenge comes down to sequencing, argues Donati. He believes that market forces are accelerating ahead of policy and grid development, creating friction across the system.

Donati argues that the key constraint is regulation. Equipment prices have fallen, and higher power prices are drawing in capital, yet complex permitting processes, fragmented approvals and evolving regulatory frameworks are slowing delivery. For investors, this creates a trade-off between higher returns and higher development risk, with projects delayed rather than stopped.

At the same time, grid limitations and the growing importance of storage are reshaping the landscape. Transmission infrastructure remains a structural bottleneck, while battery storage is moving from early-stage hype to a more disciplined, essential role in balancing an increasingly supply-driven system.

In this episode of the Energy Transitions podcast, you will learn more about:

• Why Italy’s renewable market is driven by strong fundamentals but constrained by regulatory inefficiencies;
• How permitting delays and bureaucratic complexity impact project timelines and investor confidence;
• The trade-off between higher power prices, stronger returns and increased development risk;
• Why grid infrastructure remains a key bottleneck for scaling renewables;
• How the battery storage market is evolving as a core enabler of system balance;
• Why renewables deployment is now primarily a regulatory, not technical, challenge.

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Listen to previous episodes:
Should Europe place big bets on small modular reactors?
What energy lessons can the UK and Spain learn from each other?
How AI and data are transforming the way we manage the grid

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Hedging against market volatility with geothermal power