Italy’s electricity consumption reached 311.3 TWh in 2025, remaining essentially unchanged compared to 2024, according to data released by Terna, the national transmission grid operator led by Giuseppina Di Foggia. Behind this apparent stability, however, lies a year marked by significant structural adjustments in generation sources, industrial demand and storage capacity.

Renewable sources covered 41% of national electricity demand in 2025, slightly down from 42% in 2024. This marginal contraction reflects two counterbalancing dynamics: a historic expansion in photovoltaic generation and a sharp normalization of hydroelectric output following the exceptional levels recorded the previous year.

Overall, 2025 confirms a structural transformation of Italy’s power system. While total consumption remains stable, the internal composition of generation is shifting decisively toward solar, supported by accelerated capacity additions and the rapid scaling of storage. The challenge ahead lies in consolidating these gains while ensuring system flexibility, industrial competitiveness and a continued reduction in fossil-based generation.

A two-speed year for demand and industry

Electricity demand in 2025 unfolded along a two-speed trajectory. The first part of the year was characterized by negative year-on-year variations, while the second half saw a recovery, partly driven by a rebound in industrial consumption.

The IMCEI Index (Monthly Index of Industrial Electricity Consumption), developed by Terna and based on data from approximately 1,000 energy-intensive enterprises, recorded a recovery in the second half of the year. Despite the downturn in early months, the index closed 2025 with a slight decrease of -0.7%. Sectoral performance was heterogeneous. Positive trends emerged in iron and steel, engineering, cement, lime and gypsum, and food production. By contrast, declines were observed in non-iron metals, chemicals, transportation, paper, and ceramics and glass.

The services sector showed more resilience. In the first ten months of 2025, the IMSER Index (Monthly Services Index), based on electricity consumption data from distribution network operators including E-Distribuzione, UNARETI, A-Reti, Edyna and Deval, recorded growth of +2.6% compared to the same period of 2024.

Regional data confirm a fragmented landscape. Electricity demand rose marginally in the North (+0.1%), while contracting in the Centre (-0.4%) and in the South and Islands (-0.7%). These variations reflect both economic differentials and structural disparities in energy-intensive activities across the country.

In December alone, demand reached 26,135 GWh, the highest level since 2021, increasing by 1.8% compared to December 2024. This result was achieved with the same number of working days and an average temperature 0.8 °C higher than the previous year. Once adjusted for calendar and temperature effects, demand increased by 2.6%. On a seasonally adjusted basis, month-on-month variation remained stable at -0.1%.

December also confirmed a broad-based regional expansion: +2.0% in the North, +1.8% in Central Italy and +1.4% in the South and Islands. The IMCEI Index surged by +9.5% compared to December 2024, with particularly strong growth in iron and steel, food, transportation, and cement, lime and gypsum. The short-term variation stood at +3.4%, while seasonal and calendar adjustments did not alter the positive trend. The IMSER Index for October showed a +2.2% year-on-year increase.

Generation mix reshaped by solar expansion

Italy’s electricity demand in 2025 was met for 84.9% by domestic production and for 15.1% by net imports. Domestic net production reached 268 billion kWh, up 2% compared to 2024. The net import-export balance decreased by 8.1%, reflecting lower imports and stable exports.

The combined effect of reduced imports from neighbouring countries and the relative stability of renewable sources led to a 4.6% increase in thermoelectric generation. Within this category, coal-fired production continued its structural decline, falling by a further 13.5% in 2025, in line with Italy’s decarbonisation trajectory.

The most significant driver of change was photovoltaic generation, which increased by +25.1% year-on-year and surpassed 44 TWh, setting a new historic record. In June alone, solar output reached 5.7 TWh, up +35.6% compared to June 2024. The overall increase of 8,892 GWh was attributable both to expanded operating capacity, contributing 6,636 GWh, and to higher solar irradiation, accounting for 2,256 GWh.

In contrast, hydroelectric production fell by -21.2% after the extraordinary surge recorded in 2024, returning to more standard levels. Wind generation decreased by -3.3%, while geothermal output remained essentially stable at -0.3%. Production from stand-alone storage systems reached 1.5 TWh, underscoring the growing importance of flexibility resources in integrating variable renewables.

As of 31 December 2025, Italy’s installed renewable capacity totalled 83,529 MW, including 43,513 MW of solar and 13,629 MW of wind power. Over the course of the year, renewable capacity increased by 7,191 MW, exceeding the 2021–2025 installation target set by the DM Aree Idonee (21 June 2024) by 1,605 MW.

Storage capacity also expanded significantly. From January to December 2025, nominal storage capacity increased by 1,743 MW, including 723 MW of utility-scale installations. Italy now counts 884,404 storage systems, corresponding to 17,920 MWh of energy capacity and 7,362 MW of nominal power. The expansion of large-scale storage has been supported by the Capacity Market. In September 2025, the first auction under the MACSE (Electricity Storage Procurement Mechanism) allocated 10 GWh of storage capacity, covering 100% of the required demand. Conversely, the segment of small-scale storage slowed, partly due to the reduction of fiscal incentives that had previously driven residential uptake.

In December, demand was met for 85.7% by domestic production and 14.3% by net imports. Renewable sources covered 27.5% of demand, compared to 32.5% in December 2024, reflecting weaker wind (-44.1%) and hydro (-9.0%) output, despite increases in thermal (+15.6%) and photovoltaic (+12%) generation. The import-export balance declined by 14.1%, due to higher exports (+8.7%) and lower imports (-12%).

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