Why Italy’s New Renewable Energy Law Unlocks Opportunities for Land-Based Financing
Executive Summary
Italy’s Decreto Legislativo 190/2024 (“Testo Unico Fonti Rinnovabili”) establishes a unified framework for renewable energy development. By streamlining permitting, recognizing renewables as a public interest, and expanding eligible land uses, the law reduces many of the bottlenecks that have historically slowed deployment.
The reforms are particularly relevant for projects requiring complex land negotiations. Clearer rules, shorter approval times, and a national standard create a more predictable environment for developers and landowners alike.
1. Legislative Highlights
1.1 Streamlined Permitting
Three simplified authorization regimes: free activity, simplified procedure (PAS), and single authorization (AU).
Digitalization via the SUER platform, standardizing applications across Italy.
1.2 Public Interest Recognition
Renewable projects recognized as public utility, urgent, and of overriding public interest.
Stronger legal standing for developers when securing land agreements.
1.3 Expanded Land Eligibility
Renewables allowed on agricultural land, with safeguards for biodiversity and cultural landscapes.
Agrivoltaics up to 5 MW eligible for simplified procedures.
1.4 Certainty in Execution
Defined timelines (30–60 days for PAS; max 2 years for AU).
Permits tied to execution deadlines to avoid indefinite delays.
2. Challenges Addressed by the Law
Italy’s renewable market has faced:
Long, uncertain permitting timelines;
Regional fragmentation and uneven enforcement;
Landowner hesitation due to unclear project credibility.
The law addresses these by:
Creating uniform national rules;
Establishing predictable timelines;
Recognizing renewables as strategic infrastructure.
3. Strategic Implications for Developers
Faster RTB: More predictable pathways to ready-to-build status.
Lower Costs: Reduced risk of delays and legal disputes.
Investor Confidence: A uniform framework builds trust with financiers.
4. Application to Land Financing Models
The law’s focus on clarity and acceleration makes it easier to introduce innovative financial structures that resolve landowner deadlocks and provide liquidity upfront.
Benefits of Upfront Lease Payments or Acquisitions:
Resolve disputes in multi-landowner settings through lump-sum settlements.
Demonstrate developer seriousness with capital at signing.
Simplify negotiations by avoiding decades of indexed rent discussions.
5. The Telios Advantage
While the legislation opens the door, developers still face capital constraints. This is where Telios Land Partners adds value:
Upfront capital for land: By buying or prepaying land leases, Telios converts land into collateral, freeing developers’ equity.
Compliance support: Developers can use freed-up equity to cover new obligations such as decommissioning guarantees.
Bankability: Standardized leases with upfront structures fit well with the streamlined permitting environment and can be securitized.
Agricultural land opportunities: With agrivoltaics and farmland projects unlocked by the law, Telios can design landowner-friendly lease structures that balance agricultural continuity with renewable deployment.
6. Conclusion
Italy’s Decreto Legislativo 190/2024 marks a major step forward for renewable energy deployment. By simplifying approvals and elevating renewables to the level of public interest, the law creates the stable environment developers and investors have long needed.
Telios Land Partners is positioned to help developers fully leverage this environment — resolving land negotiations quickly, unlocking capital efficiency, and accelerating project delivery across Italy’s renewable sector.
