Investments: utilities could generate up to 33 billion a year in the post-PNRR era

2026 saw the conclusion of the NRRP, the largest public investment plan since the Second World War: 194 billion allocated to Italia, without which the country would – according to various observers – be in recession. Who will now take up the baton to ensure the continuity of these investments and revitalise Italian competitiveness? This is the question posed by A2A, which, together with the Teha Group, has produced the study “Investing to Compete. The contribution of utilities to the country’s development and employment’, presented today at the Cernobbio Forum by Roberto Tasca and Renato Mazzoncini, chairman and chief executive of A2A respectively, and Lorenzo Tavazzi, senior partner and board member of Teha Group.

The answer lies in the title itself: the utilities are ready to play their part, allocating resources to areas that are strategic for Italia’s future, so as not to lose the momentum provided by the NRRP and to strengthen a system that faces complex challenges, ranging from competitiveness and the security of its supply chains – which the Hormuz crisis has brought back into focus – to increasingly noticeable climate change. An analysis by A2A and Teha estimates that companies in the energy and utilities sector could mobilise total private investment in Italia of €315 billion by 2035 and €825 billion by 2050, equivalent to approximately €33 billion per year. In the following areas: generation from renewable and nuclear sources, solutions for the flexibility of the electricity system, electricity and gas infrastructure (still necessary), data centres, district heating, integrated water cycle management, waste treatment, recycling and recovery, and biomethane. With the greatest concentration of funds on generation – which needs to be increased – on renewables, networks and water management efficiency (see also the chart opposite).

These are the critical sectors of Italy’s energy infrastructure, as well as the traditional areas of activity for utilities, which, by their very nature, lie at the heart of the major challenge of recent years – the energy transition – and have the capacity to translate European objectives into regional development from an economic, environmental and social perspective.

The study also quantifies the benefits of the resources committed. Indeed, every euro invested in the sector can generate an impact equal to 4.1 times the initial value, thus acting as a driver of development that could help boost annual GDP growth by 10 per cent until 2050, without affecting public debt, as well as creating up to 300,000 new direct jobs.

These investments would also lead to greater uptake of renewables – currently the cheapest source of electricity generation – resulting in savings. The study quantifies these savings for businesses at around 80 billion cumulatively by 2050: in addition to the relief this would bring in terms of profit margins and competitiveness, if reinvested, this could mean a further 260 billion in added value generated for the national economy. Looking ahead, consumption could eventually be fully electrified. In this scenario, the study estimates that energy costs (including fuels) for households would be up to 1,000 euros lower per year (700 euros in a scenario of only partial electrification). But that is not all. This development could see national energy self-sufficiency (again, including fuels) rise from the current 26 per cent to 81 per cent by 2050, with reduced exposure to market volatility.