Italy Delays Coal Phase-Out to 2028-2029 Amid Energy Market Pressures

Italy's planned coal phase-out by 2025 has been delayed, with coal plants remaining operational as strategic reserves. Despite a national energy strategy established in 2017, data from the International Energy Agency shows global coal consumption reached a record high of 8.85 billion tons in 2024.

Italian coal plants, such as Torrevaldaliga Nord and Federico II, are kept in standby mode, funded through public resources. The delay is attributed to insufficient infrastructure, specifically the Tyrrhenian Link, which is not expected to be operational until 2028.

The Capacity Market mechanism has allocated contracts worth approximately €1.72 billion for 2025, primarily for existing coal and gas capacity. The evolving energy demands, including requests for 30 to 44 GW for data centers, complicate the transition away from coal, suggesting it remains a necessary backup power source.