Pantelleria, energy and insularity
Reducing energy costs and overcoming dependence on oil

Pantelleria is one of the smaller Italian islands not interconnected to the national electricity grid. Electricity is produced locally through a fossil fuel-powered power plant, with fuel transported by sea.

Today, almost all of the island’s electricity is produced by diesel-powered generators, while only a limited share comes from small, widespread renewable plants. This energy model involves a strong dependence on oil and makes the energy system structurally more expensive than in the territories connected to the national grid.

The condition of Pantelleria is not unique in Europe. Many islands have faced the same problem, but specific public policies have been adopted in several countries to compensate for the disadvantages related to insularity.

European examples of policies to compensate for insularity

In France, on islands and territories not interconnected to the continental electricity grid, the principle of national tariff equalisation applies: electricity is paid at the same price as in mainland France, even when the real cost of production on the islands is higher. The difference is compensated for by the national energy system. In some ultramarine territories, lower tax rates on consumption are also envisaged, precisely to reduce the cost of living in island areas.

In Spain, island territories such as the Canary Islands benefit from a real special tax regime. In these islands, the national VAT of 21% does not apply, but a reduced consumption tax, the IGIC, with a general rate of 7%. The system also provides for various economic compensation instruments for insularity, including tax breaks for residents and businesses and policies to support energy and fuel costs.

These examples show that in many European systems, insularity is not treated as a simple geographical disadvantage, but as a condition that requires dedicated public policies to ensure economic balance and quality of life in island territories.

It is also necessary for Pantelleria to open a reflection in this direction. The energy issue cannot be addressed exclusively as a technical or market problem, but must become part of a real public policy of insularity.

In this perspective, a strategy for the island could develop along three main lines.

Economic compensation for energy insularity
National equalisation mechanisms need to be strengthened so that citizens and businesses on smaller islands are not penalised by higher energy costs than on the mainland.

Local Energy Communities
Pantelleria could become one of the first Italian examples of a widespread island energy community, in which citizens, businesses and property owners participate directly in the production and sharing of renewable energy. This model would make it possible to increase local self-production and progressively reduce dependence on oil.

Landscape-compatible energy transition
Pantelleria is a unique cultural landscape in the Mediterranean. The dammusi, with their domed roofs and terraces facing the sea, represent one of the most important identity elements of the island. The energy transition must therefore be designed with care and respect for the territory, avoiding solutions that could compromise the architectural and landscape value that makes Pantelleria unique.

Pantelleria can become an advanced energy transition laboratory for the smaller islands of the Mediterranean. But to do so, it is necessary to recognize a fundamental principle: insularity must not become a permanent economic penalization.

The islands do not ask for privileges.
They ask for policies appropriate to their condition.

Pantelleria, March 2026

THE DAMMUSO CIRCLE Association – Pantelleria

Download the official press release here.