The Italian government aims to finalize by the end of 2027 a plan that would allow a return to nuclear power, the use of which was banned in the country nearly 40 years ago.

Energy Minister Gilberto Pichetto Fratin said this in an interview published by Il Sole 24 Ore.

According to the government led by Giorgia Meloni, the introduction of small modular reactors and advanced modular reactors can contribute to the decarbonization of some of Italy's most polluting sectors, such as steel, glass and tile production.

Nuclear power plants were banned in Italy following referendums in 1987 and 2011, but the government is now studying new legislation to remove the ban through the use of new nuclear technologies.

"Italy is ready to return to nuclear power, which represents a crucial choice that will not replace renewables but will complement them by ensuring that we have a balanced and sustainable energy mix. It is a move we can no longer put off," Pichetto Fratin said, adding that a draft bill will be submitted to the council of ministers for approval within the next two weeks.

Last September, the minister had said the government would pass legislation to allow the use of new nuclear technologies by early 2025 at the latest, and hoped that parliament could approve the bill by this year.

The Italian government estimates that it could save 17 billion euros on the cost of decarbonizing the economy by 2050 if nuclear power were to make up at least 11 percent of the country's energy mix.

"In the Pniec we assume to go up to 22 percent," Pichetto said.

Italy has maintained key competencies in the nuclear sector: Enel operates nuclear power plants in Spain, while Eni is investing in a project to develop a nuclear fusion reactor in the United States.

Last year, Pichetto Fratin said Italy was in talks with several companies, including U.S. energy group Westinghouse and France's Edf, as potential partners for a state-owned company that would build advanced nuclear reactors in the country, and that Enel, Ansaldo, and Leonardo were working on a plan for a state-owned company to build nuclear reactors in Italy.

Last November, Enel said it would join forces with other groups to create a new company to study the use of advanced nuclear technology, but no agreement has yet been signed.

(Translated by Alessandro Parodi, editing Gianluca Semeraro)