Sasso 2 geothermal plant by Enel Green Power, Tuscany, Italy

 After a very long period of negotiations, the regional council of Tuscany, Italy has approved the 20-year extension for the geothermal concessions held by Enel Green Power (Enel). With this, the licenses will remain with Enel until 2046.

“With the renewal of this concession, Tuscany consolidates itself as a green region that focuses on sustainability, moving from covering, with geothermal production, no longer 34% of our energy consumption, but 37-38%,” said Eugenio Giani, President of Tuscany.

Enel currently has 34 geothermal power plants in the Tuscany region. Eight of these geothermal concessions were set to expire by 2024, but the company was given a one-year extension until 31 December 2025. The decision was highly criticized, as the one-year extension was not compatible with the investment horizon for geothermal projects.

In late 2023, Enel presented a EUR 3 billion investment plan for Italy’s geothermal sector, with plans of building two new power plants by 2030. However, the plan was contingent on the company receiving a substantial extension on their existing concessions.

Over the next months, the regional council requested the geothermal developer and operator to present plans and timetables for maintenance and technological improvement to guarantee the efficiency of the power plants. The investment plan will also include EUR 30 million in contributions per year for the municipalities, which will then go towards the building of roads, schools, and sports facilities.

This is a positive development for Italy’s geothermal sector, which has been at a standstill for about a decade.