Italy split on possible solar plant curbs that may jeopardise green goals

ROME: Italy's rightwing coalition is split over a possible ban on the installation of solar panels on agricultural land, according to draft decrees and government officials, a move that could jeopardise Rome's decarbonisation goals.

At the end of a meeting of G7 energy ministers last week, Italy and its partners committed to triple installed renewable energy capacity by 2030 and phase out coal-fired power plants in the first half of the next decade.

But a draft decree prepared by Agricultural Minister Francesco Lollobrigida and seen by Reuters rules that "areas classified as agricultural by municipal plans are unsuitable for the installation of photovoltaic systems with modules placed on the ground".

The ban is part of a broader package of measures aimed at protecting farming and fisheries.

Lollobrigida's plans have however met resistance from Energy Minister Gilberto Pichetto Fratin, who supports national efforts to decarbonise, government officials said, adding the issue would be discussed at Monday's 1530 GMT cabinet meeting.

A separate draft includes references to "provisions aimed at limiting use of agricultural land" without detailing them, a signal that the dispute is still alive.

Neither ministry was immediately available for comment.

Italy last year added nearly 6 gigawatt (GW) in renewable energy capacity, mainly through the development of small solar plants, with wind projects accounting for only 8% of the new green capacity.

Limits on solar plants could negatively impact energy companies including ERG and ALERION, which have growth targets in the solar sector, financial analysts at Italian broker Equita said.

On the other hand, a slowdown in the development of solar capacity could be positive for power generators including Enel , A2A and IREN, which may suffer pressure on prices if solar energy accelerates, the analysts said. (Reporting by Giuseppe Fonte in Rome and Francesca Landini in Milan; Editing by Nick Macfie)