Italy gets tough on coal-to-power subsidies

The Altomonte CCGT facility in Italy. (Edison)

Italy will not allow coal-fired power plants to participate in capacity auctions under its revised scheme, more than five years before EU regulations make such restrictions obligatory. The country’s revised capacity market – where plant operators are paid to commit production capacity for the future – was approved by the European Commission late last week, and the first auction is scheduled to take place later this year.

The strategy fits with Italy’s plan to phase out...