Solar Power in Italy: Evaluating the Potential of Concentrated Solar Power and Photovoltaic Technologies

Italy’s abundant solar resources and its strategic Mediterranean location offer strong opportunities to accelerate the transition to a low-carbon energy system. This study presents a comparative techno-economic assessment of concentrating solar power (CSP) plants with 8 h of thermal energy storage (TES) and a 1 MW photovoltaic (PV) plant to evaluate their roles in exploiting Italy’s solar potential. The analysis covers four representative locations (Montalto, Val Basento, Ferrara, and Priolo) and examines solar availability, seasonal performance, capacity factor, electricity generation, land use, and levelized cost of electricity (LCOE). Both technologies show marked seasonal variability, with lower winter performance and summer peaks. Southern sites outperform the northern ones, with Priolo achieving the highest generation and Ferrara the lowest. CSP benefits from dispatchable operation enabled by TES, providing nearly constant rated output and summer capacity factors up to 78%, with annual production exceeding 4 GWh at the best site. In contrast, PV operates non-dispatchably, with capacity factors below 31% and annual generation between 1.47 and 1.72 GWh. The North–South performance gradient is stronger for CSP due to its dependence on direct normal irradiance. PV technology offers higher land use efficiency, producing over twice the energy per unit area compared to CSP technology, while CSP technology requires larger areas but ensures greater operational flexibility. Economically, PV technology achieves a lower LCOE, whereas CSP technology entails higher costs but adds value through dispatchability and improved grid integration. Overall, combining CSP and PV systems can enhance grid stability, reduce emissions, and strengthen Italy’s energy security, highlighting the importance of coordinated planning and investment in complementary solar technologies for decarbonization and for regions with similar climatic conditions.