Italy has plans to utilise the funds coming from the European Union under the REPowerEU scheme so as to completely disconnect itself from the Russian gas and thereby turn the country in the bloc’s energy hub, said Giorgia Meloni, the country’s prime minister in a statement.
Apparently, the prime minister met with the relevant ministers as well as the CEOs of various energy groups such as Tema, Snam, Enel, and Eni on February 6 and outlined the need to cooperate with Africa when it came to energy supplies.
The REPowerEU plan is to make sure that the EU’s dependence on Russian fossil fuels ends with a total of around 300 billion euros in funds. Besides, tackling the climate crisis also happens to be on its agenda.
This shall include untapped loans of almost 225 billion euros that will be made available under the NextGenerationEU pandemic recovery plan that was launched in 2021.
The European Commission is also planning to fund it with the aid of an additional 20 billion euros in grants by way of selling EU Emission Trading System allowances. ETS system which was launched in 2005 compels the power companies, creators as well as airlines to purchase permits so as to cover each tonne of their emission of carbon dioxide.
Snam’s which happens to be an Italian gas grid operator, its chief executive told Reuters that the group is looking to take the support in order to invest 2.5 billion euros so as to push the capacity of domestic network.
The funds coming from RePowerEU can also be utilised to build the SoputH2 corridor, a link that brings hydrogen which will be produced in Northern Africa and go to North of Europe, as per someone who is well-versed with the matter.
The right-wing government in Italy intends to go ahead with talks with Brussels on proposed use of the funds of EU by April end as per a statement coming from Rome.