SOCIO-ECONOMIC IMPLICATIONS OF ENERGY TRANSITION: THE NEW ROLE OF HUMAN CAPITAL

Italy’s energy landscape is undergoing a profound transformation, marked by expanding renewable capacity, fluctuating climatic conditions, and evolving market dynamics. In this context, human capital emerges as a critical driver of a just and effective energy transition. This paper investigates how skills, education, and workforce development shape Italy’s path toward decarbonization, integrating a systematic review of the literature with empirical evidence on green employment and regional disparities. The analysis highlights that while Italy is advancing in renewable deployment and energy market integration, a persistent gap between labor supply and the skills demanded by emerging green sectors risks constraining progress. Significant territorial imbalances further amplify these challenges, revealing uneven capacities across regions to adapt and benefit from the transition. The findings highlight the need for integrated policies on education, reskilling, and labor inclusion to reinforce human capital and support a fair and sustainable energy transition.1.IntroductionRecently, Italy's energy landscape exhibited notable shifts that reflect both the ongoing transition toward renewables and the system's responsiveness to varying climatic and market conditions. In March 2025, electricity available for consumption rose from a year earlier, driven mainly by a strong rebound in thermoelectric output and solid gains in solar generation. This expansion was tempered by pronounced declines in hydro and wind power, highlighting the sensitivity of weather-dependent sources to seasonal and climatic variability.Over the same period, Italy markedly increased its power exports, signallinga stronger role in regional electricity markets and a more efficient use of cross-border interconnections (Terna, 2025). These dynamics underscore the complexity of Italy's energy transition, where increased solar capacity and thermal resilience coexist with fluctuating renewable yields, necessitating integrated strategies for stability and decarbonization. Specifically, current projections underscore the urgency of addressing human capital challenges.