Gas Strategies May 2018

Italy’s energy transformation: too many cooks?
Six months after committing to phase out coal by 2025, a move that would significantly increase natural gas’ role as a back up to variable renewables, Italy’s energy transformation hangs in the balance. An inconclusive election has thrown up more questions than answers, while a number of gas supply contracts are approaching their expiry dates.
Indeed, the political stalemate in Italy following the March 4 elections has heaped uncertainty on the strategic direction of Italy’s energy policy, and the prospects for gas in particular. More than two months after the vote, no government has been appointed.
Political forces contending to form a new cabinet have expressed strong views on energy, which frequently conflict with each other, as well as with current objectives to strengthen the role of gas in the country’s demand profile.
The 5 Star Movement (M5S), which won the highest vote share with roughly 32% of votes, is strongly against the fossil fuels, including natural gas. The Movement aims to phase them out by 2030.