Meloni: Italy to use EU funds to become energy hub for Europe

The July 13, 2022 file photo shows a view of the Edison Angelo Bertini Hydroelectric power plant at in Cornate D'Adda, on the Adda river, northern Italy. Italy intends to use funds coming from the European Union under the so-called REPowerEU plan to completely wean itself off Russian gas and turn the country into energy hub for the bloc, Prime Minister Giorgia Meloni said in a statement. (PHOTO / AP)

ROME – Italy intends to use funds coming from the European Union under the so-called REPowerEU plan to completely wean itself off Russian gas and turn the country into energy hub for the bloc, Prime Minister Giorgia Meloni said in a statement.

Meloni – who met on Monday with relevant ministers and the CEOs of energy groups Eni, Enel, Snam and Terna – mentioned the need to cooperate with Africa on energy supplies.

With total funds close to €300 billion ($321.36 billion), the REPowerEU plan is aimed at ending the EU's dependence on Russian fossil fuels and tackling the climate crisis

With total funds close to €300 billion ($321.36 billion), the REPowerEU plan is aimed at ending the EU's dependence on Russian fossil fuels and tackling the climate crisis.

ALSO READ: Italy gets green superministry as Draghi eyes EU funds

It includes about €225 billion of untapped loans made available under the NextGenerationEU pandemic recovery plan launched in 2021.

The European Commission also proposed to fund it through additional €20 billion in grants from the sale of EU Emission Trading System allowances (ETS).

Launched in 2005, the ETS system compels manufacturers, power companies and airlines to buy permits to cover each ton of carbon dioxide they emit.

The chief executive of Italian gas grid operator Snam told Reuters last week the group would seek EU support to invest €2.5 billion to boost the capacity of domestic network.

READ MORE: EU countries agree gas price cap to contain energy crisis

Money coming from the RePowerEU could also be devoted to build the so-called SoutH2 Corridor, a link to bring hydrogen that would be produced in northern Africa to northern Europe, one source with knowledge of the matter said.

Italy's right-wing government plans to complete the talks with Brussels on Rome's proposed use of the EU funds by the end of April, Rome's statement said.