Renewables, Golden Opportunity
According to EU commitments, Italy will have to increase the share of energy obtained from renewable sourcea from 5% in 2005 to 17% by 2020. This is a major technological and economic challenge, requiring significant investments across the national territory. Regional administrations will have to be directly involved, since it falls on them to regulate investment outlays according to principles of rationality and sustainability.
If we look at the distribution of natural resources, we see that Central and Southern Italy have the biggest potential for wind and solar energy. The 2020 target could be a unique growth opportunity, as well, since it relies on local input (labor, capital, know-how). However, if we look at investment outlays we see that growth in renewables has not occurred in the most potentially favorable regions. Take for example photovoltaic solar energy: Northern regions show a more marked investment activity. In fact, Trentino-Alto Adige has by far the highest per capita wattage installed, thanks to a forward-looking policy which has spread skills and fostered entrepreneurial initiatives and administrative innovation.
Soft factors, rather than technological factors, thus account for the relative diffusion of renewables. Those include the ability to seize new opportunities, readiness to adapt to the cultural change that needs to accompany the shift to a new energy model. In order to meet EU targets on renewable energy and emissions, firms will not be the only key actors. Administration, finance, the whole of civil society will determine the final outcome, by creating, or not creating, a favorable business environment.
Although virtuous examples are more frequent in the North, a Southern region like Apulia was perfectly able to seize the advantages afforded by the new industry. The region has set a national standard to follow, while there are several Northern regions that are missing out.
It is likely there will be cross-regional competition to attract investment in renewables. The extra capacity will have to be installed somewhere (the EU demands it), and more efficient and adaptive regional administrations will come out on top. Investment in solar and wind energy will generate major spillovers in host regions, in terms of labor, knowledge, return on capital. It's a chance that Southern regions, especially, cannot afford to miss.