One of the major obstacles to new technology application in the Italian renewable energy sector is undoubtedly the lack of information and, consequently, a lack of awareness by potential companies regarding the value of this investment, the payback time, and the duration. “It seems paradoxical,” states Alessandro Villa, CEO of Elmec Solar, “but it often happens that I am confronted with important managers and entrepreneurs, who have never done a proper analysis on this subject”.

Villa is among the entries in the report Technological obsolescence and renewable energy suppression in the Mediterranean: a cross-border investigation between Italy, Bulgary and Greece, developed with the support of Journalismfund Europe.

“Another significant obstacle is often the economic uncertainty of most companies, which unfortunately leads them to avoid making investments that are not considered necessary or not central to their business.”. In order to surmount these challenges, it is needed to provide some support mechanisms that give financial help to businesses that take into account not only the conventional parameters to gauge their economic health but also what return – in the event of defaulting and non-payment of financing taken – can be obtained from the body giving them by selling energy itself. This would certainly entail some laws to be changed, but it would have a very positive impact on the industry”.

Elmec Solar is the Elmec Group Brunello (Varese, Italy) company that focuses on renewable energy and energy sustainability. It designs and installs solar photovoltaic systems, electric recharging stations and energy storage systems with the utmost care to help families and businesses achieve their aims of environmental protection and saving on energy costs. Elmec Solar is in a technology centre that interacts with the most important global realities. A firm that is recognised as a constant contributor to innovation and development, one of the Forbes 50 top digital transformation firms chosen.

Lobbying interests

And neither may it be ruled out that there is lobbying or interest group pressure to slow innovation and the spread of renewable energy in Italy. Just question yourself who the biggest firms in the energy sector are, who their leaders are, how much non-renewable activities their balance sheets carry in terms of EBITDA and shareholder satisfaction, how much these numbers turn into employment, etc. It is still not exactly clear what a successful transition to renewables could imply in terms of employment, GDP, etc. If such awareness were more common, the shift to renewables would not only be perceived as a green imperative but also as a sound economic opportunity for development.

Bureaucracy is often tasked with jobs that lie beyond its jurisdiction. “In some cases, it is hard to obtain authorisations because the deadlines are unrealistic.”. However, in Italy, much of these issues has a technical origin (distances, connections, etc.) and the need to reach an agreement between the various parties involved, which often are not in accordance with one another as the goal of establishing a photovoltaic park, a floating system or other apparatus. Besides, it also occurs that the enthusiasm of the competent authorities, such as superintendencies or municipal governments, combined with the regulatory constraints and duties of the administrator, slows down decision-making processes even further when solutions would seem easy to implement”.

“R&D investment is crucial to our company.”. Given our dimension, we are dependent on quality and innovation, as reflected through the numerous qualifications we have earned throughout the years (ISO 9001, 14001, 45000, B-Corp, Ecovadis and Sustainability Report). In our team of 25 direct staff, plus the same quantity of installers, there is an engineer who solely works for R&D, we attend all major national and international trade fairs, and we provide conferences to remain updated with technology.

Thus, we are already conducting research into leading-edge topics, like hydrogen,” he explains. “To ensure the long-term competitiveness of our plants and technologies, we pursue a strategy of having ongoing monitoring of new industry trends, led directly by our management committee. Besides this, we also supplement this with reasonable business management, focusing on dependability towards our customers but also towards fiscal solidity.”. In addition to the expenses mentioned above, one factor that is generally underestimated is the missed opportunity to improve the plant’s productivity and economic output.

Make finance more accessible

Instances such as retooling or repowering would in fact push performance and profitability upwards. Several actions can be undertaken by the Italian government to stimulate innovation and facilitate the diffusion of renewable energy. First, there is a need to raise higher awareness about the returns on these investments. Furthermore, it is required to enhance financial support, prompting banks to absorb the credit risk offset by the value of energy generation. This aspect needs to be properly evaluated to make finance more accessible and hence ensure the sector’s development.

Incentives Secondly, the most significant consideration about incentives is that they are well designed and that, upon introduction, there exists an already well-developed and functional regulatory and implementation mechanism, avoiding delays and uncertainties that would compromise their efficacy.”. The influence of incentives on technological innovation in the renewable energy sector can be only positive, but one must take into consideration, when proposing or suggesting incentives, the overall effect they have on the entire nation’s system.

For example, in my opinion, the 110% Superbonus had to be avoided, not only because it will affect future public accounts, but also because it favoured individuals who could have been able to make the investment on their own and contributed to the increase in the price of products unfairly without having any genuine motivation. What has been the outcome is a large debt for most citizens and a good outcome for a narrow group of first and often also second homeowners”. “I am confident that the renewable energy market in our nation will continue to be a great opportunity for everyone in the future, both for the companies operating in it and for the consumers benefiting from it.”.

However, its development will also strongly depend on political choices that will be made, as wrong decisions could slow down its development, while a correctly planned and strategic approach could accelerate the energy shift and have beneficial impacts on the entire economic system. I wish the renewable energy process would not come to a halt but instead be regulated in a way not to waste or destroy other assets. It is a fine balance, but over time, we have come to regard houses and sheds as part of the natural landscape, and if executed well, we can do the same with well-designed photovoltaic parks, i.e. panels integrated into roofs over agricultural land, and between irrigation lakes. These are possibilities that, if executed well, can coexist peacefully with the land. Care should be taken not to build eco monsters, however, as before with speculative construction”.