Electricity: producers say 2026 will be an exceptional year; more renewables now

On 2 September, the GME Pun Index – the wholesale price of electricity in Italia – reached 212 euros per MWh. This exceeded the peak recorded on 5 August (207 euros), a level not seen since December 2022. The rise began before the summer: the average monthly price was 119 euros per MWh in May, 132 in June, 157 in July and 180 in August. ‘The PUN – the single national price paid only by energy-intensive industries and utilities – is high due to Italia’s energy mix being heavily reliant on gas, which in turn has been affected by the Hormuz crisis,’ explains the producers’ association Elettricità Futura. “However, we should bear in mind that energy-intensive companies are rightly subsidised to prevent them from relocating. In 2025, to give just one example, based on an average PUN of 116 euros per MWh, including CO₂ rebates, Energy Release, Interconnector and interruptibility payments, these companies received around 80 euros per MWh, effectively paying around 35 euros, in line with Spain (34 euros) and Germany (35 euros). In 2026, even as the PUN rises, the incentives helping energy-intensive companies to remain competitive with the rest of Europe are also increasing.”

Elettricità Futura also highlights how, as well as being over-reliant on gas, our country consumes more energy than it produces: ‘We import around 16 per cent of the electricity we need, mainly from France. Climate change is a European issue. This summer’s extreme heat, which caused a rise in demand but also led to operational difficulties at some nuclear power stations, has prompted our neighbouring countries (France, Switzerland and Germany) to reduce the amount of energy available for export.”

Hence the association’s proposal: ‘We need to work towards increasing generation, not least in view of the steady rise in the electrification of consumption. The first step is purely political and administrative. We need the green light for authorisations that have so far held up over 150 GW of renewable energy projects ready for implementation. As for what might happen in the future, it would be irresponsible of the association to make estimates or predictions – which are all too often circulated without scientific evidence – but it is clear that we find ourselves in an exceptional situation, caught between the climate crisis and geopolitical escalations. What can be done is to accelerate the transition towards a generation mix with a higher proportion of renewables, supported by increasingly efficient grids (already an area of Italian excellence today), and to achieve a significant increase in generation capacity to enhance the security and independence of the system.”