The recent amendment to the Bills Decree (DL 21/2026) approved by the Productive Activities commission of the Chamber of Deputies postpone as of December 31, 2038 there divestment definitive of thermoelectric power plants a coal in Italy. Before the plants can resume regular operations, they will need to be renewed environmental permits and define their purpose: if a “cold reserve regime” (limited activation in emergency conditions) or continuous operation. This legislation was introduced in response to the energy crisis and high market uncertainty induced by the ongoing Middle Eastern conflict. However, industry observers are raised questions about the actual effectiveness of the maneuver and its impact on the national electricity system.
The 4 coal plants that will remain active
At the end of 2025 Italy will have four coal-fired plants for the production of electricity, with a total installed power of approximately 4.7 GW. Two are located in Sardinia, Sulcis/Portovesme (Enel property) e Holy River/Porto Torres (EP Produzione property), while the remaining two are located on the Continent, Brindisi South And Torrevaldaliga/Civitavecchia (both Enel assets). In 2020 the government led by Giuseppe Conte, through the PNIEC (National Integrated Plan for Energy and Climate), had planned the decommissioning of coal-fired power plants by 31 December 2025providing a specification exception for the two plants located in Sardinia. This decision was based on assumptions such as the increase in electricity production from renewable sources, the development of energy storage systems and the availability of natural gas as a transition fossil fuel. As a result, over the last five years coal-fired electricity generation in Italy has undergone a decline marked contraction.
The Brindisi Sud and Torrevaldaliga plants recorded an overall production of 13.0 TWh (terawatt hour) e 6.6 TWh in the two-year period 2022-2023in a context of maximization of coal generation determined by the significant increase in the price of natural gas, coinciding with the dawn of the Russian-Ukrainian conflict. The Brindisi plant appears to be stopped from the 2024while the one in Torrevaldaliga only produced 0.3 TWh in the same year e absence of electricity generation in 2025. The use of such power plants was classified as economically not competitive and the continuation of their operation generated losses of approximately 78 million euros in the period July 2024-2025, according to an estimate developed by ECCO, an Italian think-tank specialized in energy transition and climate change.
In 2025, the sun coal-fired thermoelectric units still in operation were those located in Sardinia, for which decommissioning had already been postponed to 2028to guarantee continuity of electricity supply to the island. Within a specific regulatory mechanism defined by ARERA (Regulatory Authority for Energy, Networks and the Environment), these plants have been qualified as “essential” and eligible for full reimbursement of costs, pending the full entry into operation of the Tyrrhenian Link submarine power line, a strategic infrastructure for the Sardinian electricity system.
The reason behind the extension: the energy crisis
The critical issues related to the current energy crisis have led the government to postpone the closure of coal power plants, so as to preserve in case of emergency the availability of all sources for electricity generation. The conflict in the Middle Eastern area and the difficulties of navigation in the Strait of Hormuz are compromising the flows of crude oil from the Gulf countries to Western markets: in this context, Italy could face relevant criticality of supply should geopolitical instability continue. The decision to extend the operating horizon of coal comes in a scenario characterized by high volatility in natural gas prices. In the European electricity market, the price of electricity continues to be strongly influenced by the cost of marginal generationwhich in many cases coincides with the gas-powered one. Therefore, the increase in the price of gas is reflected in an increase in the cost of electricity, with direct impacts on businesses and consumers. The extension to 2038 introduces a greater flexibility in the management of coal plants, qualifying them as assets of safety and, similarly to other energy infrastructure, earmarking them for use in specific conditions.
How might the extension impact?
According to numerous industry analysts, the postponement to 2038 it would not be coherent with the structure of the current national electricity system, in which the phase out (disposal) of coal as an energy source now appears to be complete. In fact, the plants are at a standstill and outside of market mechanisms, with a systematically variable cost differential unfavorable compared to gas combined cycle generation. According to the estimates of MASE (Ministry of the Environment and Energy Safety), the use of coal would become economically competitive again in the presence of a gas price that is stably higher than 70 €/MWh. In recent years, with the exception of the extreme levels recorded during the 2022 energy crisis when gas exceeded €300/MWh, market values have remained around 55 €/MWhwhile remaining exposed to geopolitical variables that are difficult to predict.
Furthermore, the reactivation of coal power plants is not an immediate processbut requires technical interventions, functional checks and restoration times that vary depending on the state of conservation of the infrastructure. Overall, these factors, together with the persistent non-sustainability of coal-fired electricity generation, they could reduce in the short term effectiveness of the government measure, without prejudice to the fact that the aim of the intervention is not that of a contingent and immediate response, but rather of a provision oriented towards a temporal horizon more extensive.
