Italy gas price cap could lift imports while lowering power prices

Italy gas price cap: Italian gas imports and European gas demand under the price cap, Chart 3

The proposed Italy gas price cap could lower wholesale electricity prices while increasing gas imports and reshaping cross-border energy flows. Timera Energy models a €60/MWh cap on gas used by Italian power generators, finding an average reduction in Italian baseload power prices of around €20/MWh in 2027. The modelling also points to just over 2 bcm of additional Italian gas […]

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