Italy Coal Phase-Out Delayed 2038 Strategic Reserve 2026

Published: March 31, 2026. The English Chronicle Desk.

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In a major recalibration of its climate timeline, the Italian government has moved to postpone the country’s coal-fired power phase-out by 13 years, pushing the final deadline from 2025 to 2038. The legislative amendment, which is expected to be converted into law by April 21, reclassifies Italy’s remaining coal plants as “strategic assets.” The shift, championed by the governing coalition, is a direct response to the “extreme energy volatility” caused by the ongoing war in the Middle East and the resulting surge in natural gas prices, which have consistently exceeded €70/MWh in recent weeks.

The new policy establishes a “Strategic Reserve” mechanism, allowing the nation’s 4.65GW of coal capacity—primarily the massive Civitavecchia and Brindisi plants operated by Enel—to remain on standby. Under this framework, these facilities will not contribute to regular daily generation but will be “idled” and ready for activation during supply emergencies or price spikes. To support this, Rome is seeking a specific exemption from EU state-aid rules to compensate utilities for the maintenance costs of keeping these “zombie plants” viable through the next decade.

The ‘Energy Trilemma’

Energy Minister Gilberto Pichetto Fratin defended the move as a necessary hedge against a “perfect storm” of geopolitical risk and infrastructure constraints. While Italy has successfully added 13 GW of renewables since 2022, the transition has been hampered by a slowdown in 2025 and the massive electricity demand from the burgeoning AI sector, which is expected to double by 2030.

Economic Protection: The government argues that keeping coal on standby is cheaper than allowing expensive gas-fired generation to dictate market prices during Gulf-related supply disruptions.
Grid Stability: Coal reserves will provide “black-start” capabilities and frequency regulation to balance the intermittency of Italy’s growing solar and wind fleets.
Climate Impact: To offset the extended coal availability, Italy has pledged to accelerate its “REPowerEU” commitments, aiming for 131 GW of renewable capacity by 2030.

A European Trend?

Italy’s decision mirrors a broader European trend of “pragmatic decarbonization.” By aligning its 2038 target with Germany, Rome is positioning itself within a regional bloc that prioritizes energy security over immediate emission cuts during the $116 oil price era. However, the move has drawn sharp rebukes from environmental groups and climate activists, who have staged protests across Rome and Milan. Critics argue that the “strategic reserve” is a “smokescreen” for continued fossil fuel dependence and that the funds used to subsidize idling coal plants should instead be diverted to long-duration energy storage.

As the Easter bank holiday concludes and the Italian Parliament prepares for a final vote of confidence on the package, the “Coal Extension” serves as a stark reminder of how quickly the Iran war has rewritten the global green agenda. For the residents of Civitavecchia and Brindisi, the smoke may have cleared for now, but the sirens of the industrial past are set to remain on the horizon for another twelve years.

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