Enel: the ‘Made in the EU’ clause on 5.0 is a good thing. The future of electricity: know-how to be safeguarded

The Italian industry is defending the current structure of the hyper-depreciation scheme (the new ‘Transizione 5.0’ plan). The figures on the distribution of projects, published yesterday by *Il Sole 24 Ore* and compiled directly by the Ministry for Enterprise and Made in Italy on the basis of applications received by the GSE, indicate that only 2 per cent of the €4.75 billion relates to renewable energy installations and software.

According to Enel, which controls 3Sun, it should be borne in mind that ‘the figure relates to an initial phase of just two months’. It is also emphasised that ‘it is not compared with any historical benchmark and does not demonstrate any causal link between the low uptake and the European requirements for photovoltaic modules’. ‘The decision to focus on European panels, to prioritise products made in the EU,’ it adds, ‘does not rule out other options, such as incentives beyond the “Transizione 5.0” scheme. It should be remembered that 3Sun is one of the very few major manufacturers remaining in Europe within the photovoltaic supply chain. It is an industrial and technological investment carried out in Italia, inherited from Enel’s current management. It helps to preserve skills, innovation, employment and production capacity in a market now almost entirely dominated by Asian imports. No one is questioning the freedom of companies to purchase panels manufactured outside Europe if they consider them more cost-effective. It is quite another matter to argue that public funds, financed by Italian taxpayers, should be used to subsidise the import of foreign technologies that generate no benefit whatsoever for the country or for Europe. Reducing the debate solely to the purchase price effectively means abandoning any European industrial policy.”

The article in *Il Sole 24 Ore* referred to price differentials with Chinese manufacturers and also summarised the regulation that limited the range of photovoltaic modules eligible for incentives to just two of the three categories – all three of which comprised products made in the EU – listed in the Enea register. ‘Europe,’ Enel continues, ‘must decide whether it wishes to limit itself to being a consumer market for technologies produced elsewhere, or retain the capacity to develop and manufacture them. It should also be noted that the hyper-depreciation scheme has only been in operation since June and that its timeframe extends until September 2028. It is therefore premature to draw definitive conclusions about its effectiveness. The problem is not 3Sun, but the notion that Europe might relinquish its industrial capacity and even use public funds to accelerate this relinquishment. This is a prospect that should concern anyone who cares about the industrial future of the country and the continent, starting with Confindustria.”

Similar views are expressed by Elettricità Futura. ‘Elettricità Futura, the leading association in the Italian electricity sector, is part of Confindustria and, precisely because it is part of the Confindustria system, constantly focuses its attention on the overall competitiveness of the national economy, on industrial policies and their impact on the domestic economic fabric. The article criticises the effects of the Transition Plan 5.0, arguing that it is problematic that the modules eligible for incentives belong to the most advanced categories of the ENEA register, referring in particular to production at the 3Sun Gigafactory, as if this were a distortion that needs to be rectified. In reality, as has been recognised on numerous occasions by the European institutions, this Italian investment represents a strategic pillar: safeguarding this industrial stronghold means defending know-how, skilled jobs and national technological sovereignty in a sector currently saturated with non-EU products supported by massive dumping.”