Investment banks reject Italy’s electricity reform and doubt its possible application

Specifically, the analysts warn that “artificially decarbonising the marginal price challenges the essence of the ETS, which aims to incentivise investment in renewables through the CO2 price signal”.

The investment bank has shown its rejection of the reform of the electricity market proposed by the Italian government of Giorgia Meloni, which has launched a reform to lower the wholesale price of electricity from January 1, 2027 that is based on to exclude the cost of CO2 from the marginal price of electricity generated in combined cycle gas, transferring that cost directly to consumers, with a cap equivalent to the cost of emissions of a combined cycle plant, and does not give credibility to its possible application. Specifically, the analysts warn that “artificially decarbonising the marginal price challenges the essence of the ETS, which aims to incentivise investment in renewables through the CO2 price signal”.

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