Italy Could Revive Coal Plants to Break Russia Energy Dependence

25 Feb 2022, 08:10 PM IST

(Bloomberg) --

Italy’s new plan to break its dependence on Russian gas may rely partly on an old source of energy: coal.

Prime Minister Mario Draghi said Friday that the country could reopen some shuttered coal plants to help bridge its looming energy supply gap and cut its dependence on Russia, which currently accounts for 45% of Italian gas supplies.

The premier said his government is reviewing other options including boosting gas imports from the U.S. and from Azerbaijan, Algeria, Tunisia and Libya via existing pipelines. Rome will also work to streamline the approval process for new green energy sites, he said.

Draghi’s remarks to lawmakers on Friday came just hours after Enel SpA, the country’s biggest utility, said it was scrapping plans to convert its two biggest coal-fired power plants in Italy to gas. Enel said it will pursue a different strategy for sustainable development at the sites in the south of the country along with local stakeholders. The company has a target to exit coal by 2027 and gas by 2040.

Italy has already spent about 16 billion euros ($18 billion) to shield businesses and consumers from the impact of rising energy costs, and Draghi said Friday his government will continue to search for ways to deliver price relief. “We need to be very careful about the impact of sanctions on our economy,” the premier said.

Other European countries are also preparing plans to offset dependence on Russian energy supplies. Germany is set to create reserves of coal for electricity power plant operators in a bid to strengthen energy security. About 50% of the country’s coal supplies come from Russia. Berlin is also considering an incentive plan to revive some troubled liquid natural gas terminal projects.

Coal-fired power generation currently accounts for only about 6% of Italy’s total energy mix, according to estimates from the country’s energy services management authority.