Energy Release 2.0 represents the updated version of the mechanism introduced by the Italian Government to place volumes of electricity on the market at controlled prices, with the goal of supporting energy-intensive companies in a context of high market volatility.
The previous version of the energy release, established in 2022 during the energy crisis, never fully became operational due to regulatory and market complexities that slowed down its implementation.
Energy Release 2.0 aims to overcome these obstacles by introducing a clearer framework and simpler procedures to allow companies to effectively access energy at a stabilized price.
What is Energy Release 2.0
The Energy Release 2.0 Ministerial Decree regulates the mechanism designed to support the transition of the Italian industrial sector toward renewable energy sources.
The mechanism provides a controlled energy price for electricity-intensive companies (registered in the CSEA lists) that undertake to build new electricity generation capacity from renewable sources. These companies have to engage in two CFDs (Contract for Differences) – Advance Contract and Restitution Contract with GSE (Gestore dei Servizi Energetici) at a strike price of 65€/MWh.
Who Can Participate
All energy-intensive end customers, i.e. companies that, on the date of publication of the Notice, are registered and/or in the process of being registered in the list of companies with a high consumption of electricity established at the Energy and Environmental Services Fund (CSEA).
Energy-intensive end customers:
Companies, counterparties to advance contracts, including through aggregators and restitution contracts with the GSE, registered, on the date of publication of the notice referred to in Article 3, in the list of electricity-intensive companies established at the CSEA;
Energy-intensive end customers in aggregate form:
Energy-intensive end customers who have signed an aggregation contract for the purposes of this decree, identifying an aggregator who acts as a counterparty to the advance and return contract.
How to Participate
Energy-intensive end customers could participate by submitting an expression of interest through the dedicated GSE portal.
The expression of interest must indicate:
- A volume of electricity not exceeding the average annual consumption used for CSEA registration (for aggregated participation, this must be assessed individually for each company);
- An optional minimum allocation threshold, below which the end customer declines the assignment (so-called minimum acceptance threshold).
How the Energy Release 2.0 Mechanism Works
Electricity-intensive companies that access energy release are required to comply with the following conditions:
1. Renewable Capacity Requirement
The energy-intensive end customer undertakes to build new generation capacity with total power equal to at least twice the volume covered by the advance contract:
This can be achieved through:
- New photovoltaic, wind and hydroelectric plants with a minimum power of 200 kW each;
- Upgrading or renovation of photovoltaic, wind and hydroelectric plants that result in a minimum of 200 kW increase
2. Advance Contract: 36 Months
A two-way contract for difference signed between GSE and energy-intensive end customers, either individually or through an aggregator, which grants the right to receive electricity made available by the GSE and allocated through the relevant procedure, together with the related Guarantees of Origin, for a period of 36 months from the contract date.
3. Restitution Contract – 20 Years
A two-way contract for difference signed between the GSE and energy-intensive end customers, either individually, through an aggregator, or via a delegated third party. The contract requires the return of the electricity previously advanced by the GSE, along with the equivalent value of the related Guarantees of Origin, for a period of 20 years starting from the entry into service of the new renewable capacity.
4. Participation Guarantees
Participants must provide a suitable deposit, as defined by the GSE in the Operating Rules.
The mixed guarantee system includes:
- An autonomous guarantee
- A collective guarantee (€3/MWh withheld from monthly differentials and returned after new renewable capacity enters into service)
- Compensation with other incentives received from the GSE.
Submission Results & Challenges
MASE (Ministry of Environment and Energy Security) announced that by the 3rd March 2025, deadline for submitting expressions of interest to the Energy Release 2.0 mechanism, the GSE had received 559 requests from approximately 3,400 energy-intensive companies. The total energy demand exceeded 70 TWh compared to the 24 TWh made available by the GSE.
Minister Gilberto Pichetto described the level of participation as positive, noting that the measure is an important tool for reducing energy costs for the Italian industrial sector. According to the Minister, Energy Release 2.0 could enable the development of more than 5 GW of new renewable generation capacity.
The results were originally expected in April, after the GSE completed the activities required for allocating the available energy and determining the proportional share for each energy-intensive company or aggregator. However, procedures were interrupted due to the need to align national regulations with European directives. As a result, the sector entered a temporary stalemate while awaiting the final operating procedures.
Last week, the Ministry of the Environment and Energy Security (MASE), through Minister Gilberto Pichetto Fratin, confirmed its commitment to finalize the regulatory framework and the related implementing decrees by mid-November. On 20th November 2025, GSE published the operating rules with the goal to sign the advance contracts before year-end.
The definition of the procedures governing the auction mechanism for volume allocation is still pending. Participating energy-intensive companies are hoping that this time, the planned timelines will be respected.
Regulatory References
- Call for the allocation of electricity in the availability of the GSE of 14/11/2024
- Ministerial Decree No. 268 of 23 July 2024 (so-called Energy Release 2.0)
- Article 1, paragraph 2, of Decree-Law No. 181 of 9 December 2023, converted, with amendments, by Law No. 11 of 2 February 2024
- Decree of the Ministry of the Environment and Energy Security of 23 July 2024 no. 268 (c.d.DM Energy Release 2.0)