Italy's Steel Sector Faces Power Demand Surge Amid High Energy Prices

Italy's steel sector, responsible for 42.4% of total power demand from energy-intensive industries in 2025, is expected to see increased electricity requirements as new electric arc furnaces are constructed. Acciaierie Venete plans to install a 100t electric arc furnace in Padova by summer 2026, projected to consume 500 GWh/year.

Concurrently, Metinvest aims to begin construction of a site in Piombino by mid-2026, which could add 1.8 TWh/year in power demand. Despite a rise in steel production, high energy costs, exacerbated by the US-Iran conflict, may limit growth. The Italian government has initiated measures to stabilize power prices, but ongoing geopolitical risks could maintain pressure on energy costs for steelmakers.