• Edison will open construction on more than 500 MW of new wind and solar capacity in 2026, on top of 250 MW already in progress.
• Investment exceeds EUR 600 million (about USD 647 million), backed by EIB financing of up to EUR 800 million (USD 863 million).
• Projects tie directly to Italy’s 2030 climate objectives and REPowerEU targets, expanding grid flexibility and long-duration storage.

Milan leans into 2030 targets as Edison ramps construction pipeline

Edison will break ground on more than 500 MW of new renewable energy capacity in 2026, advancing one of the largest single-cycle expansion programs in the Italian market. The development push follows the group’s strong performance in Italy’s latest FER-X capacity auctions, where it secured a significant share of new wind and solar allocations for build-out before 2030.

The construction slate adds to 250 MW already underway and reflects a year of accelerated execution. Between January and October 2025, Edison completed projects totalling around 200 MW across the country, lifting renewable investments by 38 percent year on year. New plants include solar generation in Sicily at 55 MW, 27 MW in Campania, 16 MW in Veneto, and wind in Basilicata at 9 MW. A full rebuild of wind farms in Abruzzo added 80 MW while cutting turbine count by 73 percent due to modern, higher-yield technology.

Chief executive Nicola Monti said the auction wins validate Edison’s strategic approach to scale. “Edison confirms its leadership in Italy’s energy transition, a result of which we are particularly proud. The success achieved in the recent FER-X auctions demonstrates our ability to be competitive in the market from an industrial and technological point of view, but also the solidity of our development model. This excellent result allows us to accelerate our growth in renewables, with the aim of doubling our installed green capacity in the coming years and making a concrete contribution to achieving the country’s decarbonization targets.”

More than 300 MW of the upcoming capacity will be wind, including full reconstructions that replace older turbines with high-output systems. The remaining 200 MW will be utility-scale photovoltaic generation. Rollout will cluster across Piedmont, Abruzzo, Campania, Puglia and Sicily, reinforcing regions where grid-scale renewable footprints and skilled labour supply are already maturing.

Edison estimates that the new phase will engage more than 1,000 construction workers and 200 supplier companies, deepening industrial supply chains that anchor domestic deployment.

Financing tilt gives renewables scale and pace

A financing agreement signed with the European Investment Bank will provide up to EUR 800 million (USD 863 million) to support Edison’s next development cycle. The first EUR 200 million tranche was executed on 21 November. Because many projects align with REPowerEU criteria, EIB funding can cover up to 75 percent of project capital costs, above the institution’s normal 50 percent ceiling under its Energy Lending Policy.

Marco Stangalino, Executive Vice President Power Asset, framed the year’s buildout as a deliberate push to raise system flexibility. “In the first 10 months of 2025, we increased investments by 38 percent compared to the same period in 2024 and completed new green installations for approximately 200 MW on schedule, confirming our growth objectives. In 2026, we will complete an additional 250 MW of wind and photovoltaic plants, in addition to opening further construction sites for over 500 MW. At the same time, if regulatory conditions allow, we are working to equip the system with the necessary flexibility and storage tools, such as hydroelectric pumping, in order to ensure more efficient and competitive use of energy, as well as to increase the resilience of territories in the face of climate change.”

For executives managing exposure to volatile power markets, the financing structure provides visibility and accelerates time-to-grid. It also strengthens Italy’s progress toward EU renewable penetration targets while creating room for more corporate PPAs and hedging products in future trading cycles.

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Storage becomes the quiet hinge in Italy’s energy strategy

Edison will advance development of long-duration hydroelectric pumping, which the company identifies as essential for balancing intermittent generation. Five potential sites have been mapped across Basilicata, Calabria, Puglia, Sardinia and Sicily. Together they could deliver at least 500 MW of storage capacity with an Italian supply chain, co-located near reservoirs and transmission infrastructure.

Hydropumping offers dispatchable balancing for wind and solar fleets that typically operate 2,000 to 2,400 hours per year. Italian policymakers have called for storage expansion to stabilise future capacity markets, particularly under peak summer demand and extreme-weather risk.

Edison’s portfolio stands at roughly 8 GW, spanning wind, solar, hydro and high-efficiency CCGT plants. In the past two years it commissioned more than 1.5 GW of programmable generation, including two new thermoelectric plants in Veneto and Campania designed for hydrogen readiness. This thermal backbone enables Italy to integrate variable output while avoiding reliability strain.

What global energy leaders should watch

The development scale matters beyond Italy. EIB participation pushes down capital costs, potentially shaping the benchmark for European auction pricing and storage policy. Wind repowering at industrial scale, coupled with large PV rollouts and hydro pumping, moves Italy closer to a high-renewable grid that can curtail fossil-based baseload without sacrificing stability.

In a European market defined by tight supply chains and volatile PPA pricing, Edison’s strategy shows how auction outcomes, public lending and technology upgrades can combine to accelerate national decarbonisation. For investors and utilities across Europe, the Italian case offers an early view of the financial and regulatory architecture required to deploy renewables at speed, while ensuring grid resilience in a climate-exposed region.

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