2. March, 2026

Italian carbon compensation to gas generators to lower European power prices, double domestic emissions

PPA Team , Renewable Power Team , EU ETS Team

The Italian government approved measures to reduce electricity prices for consumers, including reimbursing EUA costs and part of gas transport tariffs for operators of gas-fired power generation. According to Veyt’s analysis, these measures could result in a 40 % decrease in power prices next year, doubling both gas generation and domestic power sector emissions. Across Europe, power prices could decrease by 10 % while emissions rise between 3-8 %.

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