Integrated Energy Solutions Boost Profitability and Cut Emissions in Italy’s Decarbonization Efforts

In Italy’s decarbonization journey, integrating energy technologies can make a difference. According to AGICI, coordinated interventions increase profitability by up to 29% and reduce unit CO₂ abatement costs.

Decarbonizing the Italian economy can generate economic as well as environmental benefits , especially when interventions combine energy efficiency and renewable sources. According to a study presented by AGICI , integrated interventions can increase the net present value by up to 29% in public buildings, 11% in condominiums, and 10% in energy-intensive industries, while also enabling a greater reduction in CO₂ emissions.

The analysis, “The Role of Energy Efficiency in the Italian Decarbonization Process,” was presented by Stefano Clerici, CEO of AGICI, at KEY – The Energy Transition Expo in Rimini.

The findings come as the Italian energy system struggles with an inefficient building stock, an industry geared towards short-term investments, and an energy services market that still generated €11 billion in revenue among the country’s main ESCos in 2024.

In this context, the study identifies two possible trajectories for decarbonization: an incremental one, which gradually reduces emissions while maintaining current energy models, and a transformative one , which integrates efficiency and renewables by rethinking energy supply and demand.

Energy efficiency and decarbonization: demand constraints in key sectors

The analysis starts from energy demand in the main sectors, residential, tertiary and industrial, highlighting how the prevailing approach today remains incremental, driven above all by economic constraints and short-term investment horizons.

In the residential sector , the main obstacle is the age of the real estate stock . Most Italian buildings were built before 1980, and approximately 50% of homes fall into the lowest energy classes, F and G. Redevelopment therefore depends largely on the decisions of the homeowners, given that 73% of homes are owner-occupied. This factor tends to favor limited or postponed interventions, although in the long term, demographic and climate changes, including the expected increase in cooling needs by 2050, could accelerate the electrification of domestic consumption.

In the tertiary and public administration sectors, the issue is the scale and speed of intervention. The tertiary sector comprises approximately 1.3 million buildings, equal to about 10% of the national total, while public administration owns over 770,000 real estate units. Despite the 3% annual redevelopment requirement for the public sector, the process is proceeding slowly.

In the industrial sector, particularly among energy-intensive manufacturing companies, the demand for efficiency is primarily driven by reduced energy costs and the obligations associated with the European Union Emissions Trading System. The survey conducted among energy managers shows that investments are concentrated in standard solutions, especially photovoltaics and basic energy efficiency.

Integrating renewables and efficiency: the economic and environmental benefits of decarbonization

The study also analyzes the energy services market. The sample examined includes 449 ESCos (Energy Service Companies), which generated a total of €11 billion in revenue in 2024 , a decline compared to the previous year, partly due to the end of the Superbonus. The market also remains fairly concentrated, with 75% of revenue coming from larger companies , while the sector as a whole continues to be heavily influenced by public incentive mechanisms and tends to follow demand rather than anticipate it.

The core of the study, however, concerns the modeling of decarbonization interventions. The comparison between projects implemented separately and interventions designed in an integrated manner shows how the combination of energy efficiency and renewables produces better results both environmentally and economically.

Integrated design allows for greater reductions in CO₂ emissions at a lower unit cost , thanks to synergies between technologies and proper system sizing. From a financial perspective, integrated interventions generate higher Net Present Values ​​(NPVs) than the simple sum of the individual interventions implemented separately.

In particular, the NPV can grow up to +29% in public buildings, +11% in condominiums, +9% in single-family homes and +10% in energy-intensive industries.

“Decarbonization today requires an evolution of the model we use to address energy,” commented Stefano Clerici , CEO of AGICI. “The incremental approach has enabled significant progress, but to achieve the 2050 goals and build new industrial competitiveness, we must integrate efficiency and renewables into a value-creating approach.

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(Featured image by Tim van der Kuip via Unsplash)

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