What is Energy Poverty?
The Aim for Efficient and Affordable Energy
Energy Poverty and “Vulnerability”
The primary concern that Italy’s population faces when it comes to energy poverty is the uneven distribution of energy expenditure. The lowest 10% of Italian income-earners spend 4% of their budget on energy compared with the 1% that affluent households spend. This leads to a concept known as “vulnerability,” where the lowest 10% of Italian households have compressed purchasing power and reduced ability to purchase domestic or international goods and services.
Furthermore, as of 2017, Eurostat reported that 15.2% of Italy’s population cannot afford to adequately heat their homes. The inability of households to purchase an adequate amount of energy goods can have negative direct costs including increased stress on the healthcare system. It also has indirect costs such as a decrease in economic productivity and output in the community.
How Italy is Addressing the Issue
Powertis’ Role in Reducing Energy Poverty
The CCPI evaluation also includes a “Low” rating for the “Renewable Energy – current trend” component, demonstrating the need to involve the private sector in producing more renewable energy for Italian markets. The inclusion of PV solar panels would improve Italy’s rating. According to Roberto Capuozzo, the Country Manager of Powertis in Italy, Powertis is one of many private firms working to address this need. It is operating as a leading company in the transition to a zero-emission economy. Powertis’ plans to develop PV projects in Basilicata, Puglia, Sicily, Sardinia and Lazio and increase its pipeline beyond over two gigawatts between Italy and Brazil.
Powertis is reducing the price of electricity by working with local community partners to structure the project’s financing and offer a lower price, in comparison to the cost of electricity for coal. Italy’s main issue is the inconsistent distribution of energy expenditure budgets for the bottom 10% of Italian income-earners in comparison with the top 1%. If prices for energy decrease, energy poverty should decrease. Powertis’ expansion to local communities in Basilicata, Puglia, Sicily, Sardinia and Lazio will offer these individuals more purchasing power and decrease their level of vulnerability. This will also benefit the economy by allowing them the ability to consume other goods and services. By increasing Italian households’ purchasing power, Powertis is increasing access to energy services and reducing energy poverty in Italy.
Powertis has expanded its reach into Italy’s solar PV market, thereby decreasing the price of electricity for Italian households. This has increased households’ access to energy services and subsequently increased their ability to dedicate more of their personal budget towards the consumption of other goods and services. The households’ lower level of vulnerability should also help to decrease energy poverty in Italy.