Italy has only to gain from an acceleration on renewables. In fact, the goal of a complete decarbonisation of the Italian electricity system by 2035 is not only possible, but also beneficial for Italy’s economy. This is confirmed by the ‘Report on the economic and employment impacts of policies for a decarbonised Italian electricity system in 2035’. The report, presented today and edited by the Fondazione Ecosistemi on behalf of WWF Italy, is an in-depth study that estimates the positive effects that a full decarbonisation of the Italian electricity system would have on Italy’s economy and employment. The study is based on two previous documents drawn up by Ecco and Artelys: ‘Policies for a decarbonised Italian electricity system by 2035’ and ‘Development of a transition pathway towards a close to net-zero electricity sector in Italy by 2035’, reports commissioned by environmental associations.
The report considers eight production chains (grids with overhead lines, grids with underwater lines, onshore solar photovoltaic, rooftop solar photovoltaic, onshore wind, offshore wind, biomass, hydroelectric), divided into two different areas (renewable plants and grids), investigating their main life cycle phases: construction, installation, maintenance. Decommissioning is treated separately because data do not exist for all the sectors considered and this obviously leads to an underestimation of the overall employment that could be had in the full decarbonisation process of the electricity system. Specifically, the report indicates that the energy transition can create a large number of jobs, stimulating innovation and promoting a lasting and sustainable economic recovery.
For both grids and plants, the report provides three indications of employment impacts, expressed in Ula (amount of work performed in a year by a full-time employee): temporary employment related to workers employed in the production activity of grids, infrastructures, and Fer plants; temporary employment related to workers employed in the installation activity; and permanent employment, which concerns workers employed for the entire life cycle of an asset (maintenance activities of plants or infrastructures). About the economic aspects – for both networks and installations – the following were carried out: 1) estimates of capital expenditures, 2) estimates of operating costs, 3) estimates of overall impacts divided into direct and indirect. In addition, the distribution of the effects of the overall economic impact was calculated over four major areas of activity: manufacturing, construction, services and professions, and other.
The study highlights how the renewable energy sector represents an extraordinary opportunity for the Italian economy. In fact, it is estimated that the investments needed to build renewable plants amount to EUR 161.2 billion, with a discounted running cost up to 2035 of around EUR 27.5 billion. The direct, indirect and induced economic benefits remaining in Italy amount to 350.6 billion euros, distributed among various economic sectors: 140.6 billion for manufacturing, 116.6 billion for construction, 35.4 billion for services and the professions, and 93.4 billion for other economic activities.
As for the estimate of employment in 2035 related to the Renewable Energy Sources sector alone expressed in Ula – a total of 104,212 units – these can be broken down into projected Ula: 1) in the production phase, equal to 5. 375 units, 1,701 in Italy and 3,674 abroad; 2) in the installation phase, equal to 48,802 units, all in Italy; 3) in the management phase, until 2035, equal to 50,036 units, of which 42,770 in Italy and 7,266 abroad. In total, almost 90% of these employment opportunities will remain in Italy, with 93,273 local Ula against 10,939 Ula abroad. The Fer sector, considering the 25-year life cycle of the plants, will generate a total of 1,305,066 work units, with about 1,119,753 units in management activities (of which 1,069,250 located in Italy).
As far as networks are concerned, investments of about EUR 31 billion and operating costs of about EUR 3.7 billion are estimated. The direct, indirect, and induced economic impacts remaining in Italy amount to 48.6 billion: the distribution of these impacts will fall for 19 billion on incomes and investments of manufacturing activities, 18.5 on construction, 5.8 billion on services and professions, 11.2 billion on the rest of the activities. In terms of employment, on a very conservative basis, it can be estimated that by 2035 about 12,094 Ula will be in Italy and 1,422 abroad. Most of this employment (10,602 Ula) will be concentrated in the installation phase (all in Italy). An estimate was also made of the employment impact during the entire life cycle of the networks (considered to be 50 years), which would amount to 57,079 units, with about 44,452 units in the management phase activities (operation and maintenance), about 82% of which in Italy.
‘This study clearly demonstrates that a well-planned and implemented energy transition is not only a necessity to combat climate change, but also an opportunity for Italy to strengthen its economy and create thousands of jobs,’ said Mariagrazia Midulla, WWF Italy’s Climate and Energy Manager.
According to Silvano Falocco, director of Fondazione Ecosistemi, ‘the report shows, with a prudential approach, that the contribution of renewable energy sources is fundamental, not only to mitigate greenhouse gas emissions, but also to create jobs and a good economy, in the short and long term.
The decarbonisation of the Italian electricity system is therefore not only an environmental objective, but also a fundamental lever to boost employment and the national economy.
