ITALY
PRESENT SITUATION Paris – 18th March 2005
ITALY (2003)
GENERAL INFORMATION
• Inhabitants: 57.562.000 • GNP: 1.300.926 106 € • Surface: 301.000 Km2
APER APER - Italian Association of Renewable Energy Producers - was born in 1987 as mini-hydro association (APEI). Since 1998 APER encompass all renewable energy technologies. It counts about 250 members from hydro, wind, biomass, biogas and PV sources for an installed capacity of approximately 2.000 MW and an electricity production of more than 5 TWh.
APER APER acts as a no-profit association and its finalities are the promotion of a wider culture of renewables, in the respect of the environment and in the view of a fully sustainable development. In the European context APER is a member of ESHA and EREF. APER is surely a relevant actor in the renewables Italian market.
APER AN ENERGY MARKET OVERVIEW The privatisation of Italian energy market started up in 1999 with the decree 79/99 (so called “Bersani decree”) but, at present, it isn’t fully completed. The same decree introduces the green certificates support scheme for the renewable energy sources The 2001/77/CE Directive was introduced in the Italian legislation by means of the decree 387/2003 issued on 29-12-2003 A significant regulation of the whole energy sector comes from the law 239/04, issued on 23-08-2004 The tariffs and the main technical rules are fixed by Energy and Gas Authority
APER MAIN ACTORS of the ENERGY MARKET GRTN: National Transmission Grid Operator It’s the public company in charged of the energy transmission Energy and Gas Authority It’s the public agency in charge of fixing the rules of the energy market, according to the laws AU:
Unique Trader It’s the public company in charge of trading the energy for the not eligible consumers (< 100 MWh/year)
GME:
Electric Market Operator It’s the public company in charged of managing the energy market (electric bourse) Distributors Companies allowed to distribute energy in reserved areas (for examples ENEL S.p.A., municipalities, etc.) Producers Public and private energy producers
ITALY (2003)
ENERGY CONSUMPTION GWh 320.658,4
100,00
20.869,8
6,51
299.788,6
93,49
5.162,2
1,61
industry
152.720,9
47,63
services
76.889,7
23,98
domestic uses
65.015,8
20,28
Total demand Power grid losses
Total consumption agriculture
%
ITALY (2003)
ENERGY GENERATION (GWh) Gross generation Auxiliary services consumption
Net generation
293.865,0 13.681,8
280.183,2
Pumping consumption
10.492,4
Available for use
269.690,8
Imported from other countries Exported to other countries
51.485,9 518,3
ITALY (2003)
ROLE of RENEWABLES in ENERGY GENERATION (GWh) Gross
Net*
%
44.276,8
36.674,3**
13,09
1.458,4
1.456,8
0,52
5,0
4,9
0,002
Geothermal
5.340,5
5.036,0
1,80
Biomass & waste
4.493,0
4.240,0
1,51
Total RES
55.573,70
47.412,00
16,92
Total generation
293.865,0
280.183,2
Hydropower Wind Photovoltaic
* Without the auxiliary consumption: delivered to the distribution grid ** Only from natural contribution (excluding pumped storage)
ITALY (2003)
ROLE of DIFFERENT HYDROPOWER SCHEMES (GWh) Natural With contribution pumping
Total
Storage schemes
9.767,6
7.578,0
17.345,6
Basin schemes
12.323,3
23,5
12.346,9
Run-off river plants
14.583,4
0,9
14.584,3
Total
36.674,3
7.602,5
44.276,8
ITALY (2003)
ROLE of RENEWABLES in ENERGY GENERATION 0,5%
15,6% 1,8% 1,5% 0,002%
81%
Wind Hydropower Geothermal Biomass & Waste Photovoltaic Other
ITALY (2003)
ROLE of HYDROPOWER AMONG RENEWABLES GWh Hydropower Wind Photovoltaic Geothermal Biomass & waste Total
%
36.674,30
77,35
1.456,80 4,9 5.036,00 4.240,00 47.412,00
3,07 0,010 10,62 8,94 100,00
ITALY (2003)
ROLE of HYDROPOWER AMONG RENEWABLES 9,37% 11,13% 0,01% 3,04%
76,45%
Hydropower Wind Photovoltaic Geothermal Biomass & waste
ITALY HYDROPOWER GENERATION in the LAST YEARS (GWh) 1996
1997
1998
1999
Hydropower* 42.035,6 41.599,8 41.213,6 45.358,0 2000
2001
2002
2003
Hydropower* 44.204,9 46.810,3 39.519,4 36.674,3 * Only from natural contribution (excluding pumped storage) NB. 2003 was an extraordinary dry year in Italy
ITALY HYDROPOWER GENERATION in the LAST YEARS 50.000,00
GWh
45.000,00 40.000,00 35.000,00 30.000,00 25.000,00 1996 1997 1998 1999 2000 2001 2002 2003
ITALY CLASSIFICATION of HYDROPOWER PLANTS
Name
Capacity
SMALL
10 MW ≥ X > 1 MW
MINI
1 MW ≥ X > 100 kW
MICRO
100 kW ≥ X
Classification adopted by the European Commission
ITALY (2003)
NUMBER of POWER STATION and GENERATION CAPACITY Classes
Plants (nr.)
Nominal capacity (MW)
1,9% 12.117,5
Real capacity (MW)
> 100
39
52,8% 11.178,4 53,2%
10 – 100
261
13,0%
8.202,8
35,8%
1 – 10
583
29,1%
2.103,7
9,2%
1.924,0
9,2%
<1
1.122
56,0%
509,3
2,2%
406,5
1,9%
Total
2005
100% 22.933,4
100% 20.986,6
100%
7.477,8 35,6%
ITALY (2003)
NUMBER of PLANTS for GENERATION CAPACITY 2% 13%
56%
29%
> 100 MW 10-100 MW 1-10 MW < 1 MW
ITALY (2003)
GENERATION of PLANTS for CLASSES 1,6%
>100 10-100 MW 1-10 MW < 1 MW
0,4% 8,3%
89,7%
ITALY GENERATION of the DIFFERENT CLASSES in the LAST 3 YEARS (GWh)
2001 < 1 MW 1 – 10 MW > 10 MW Total
2002
2003
1.667,8 1.603,6 1.455,3 6.988,8 6.443,9 5.736,2 38.153,8 31.471,8 29.482,8 46.810,3 39.519,4 36.674,3
ITALY GENERATION of the DIFFERENT CLASSES in the LAST 3 YEARS
GWh
45.000,00 40.000,00 35.000,00 30.000,00 25.000,00 20.000,00 15.000,00
2001 2002 2003
10.000,00 5.000,00 0,00 < 1 MW
1-10 MW
> 10 MW
ITALY (2003)
GEOGRAPHIC DISTRIBUTION of HYDROPOWER PLANTS and CAPACITY Power stations (n.) Northern Italy
Nominal capacity
Actual capacity (net)
Actual capacity (gross)
1.567
16.361,5
14.749,9
15.131,2
Central Italy
270
1.673,3
1.404,2
1.424,8
Southern Italy & Islands
168
4.898,6
4.359
4.430,6
2.005
22.933,4
20.514,0
20.986,6
Total
ITALY (2003)
GEOGRAPHIC DISTRIBUTION of HYDROPOWER GENERATION (GROSS)
Northern Italy
34.747,1 GWh
Central Italy
2.971,4 GWh
Southern Italy & Islands
6.558,3 GWh
Total
44.276,8 GWh
ITALY (2003)
GEOGRAPHIC DISTRIBUTION of HYDROPOWER GENERATION (GROSS)
15% Northern Italy
7%
Central Italy
78%
Southern Italy & Islands
ITALY Targets for RES (Italian White Paper on RES 1999) Source
1997
2002
2006
MW
PJp
MW
Hydro > 10 MW
13.942
309
14.200
312
14.500
318
15.000
329
Hydro < 10 MW
2.187
75
2.300
87
2.600
98
3.000
113
Geothermal (el.)
559
36
620
42
700
47
800
54
Wind
119
1
700
13
1.500
28
2.500
46
16
0
25
0
50
1
300
3
192
5
500
28
9.000
50
2.300
127
89
2
350
16
600
28
800
37
PV Biomass and biogas (el.) Waste (el.) Biofuels
PJp
MW
2008-2010 PJp
MW
PJp
3
12
23
39
Biomass and biogas (th)
45
59
67
73
Solar Thermal
0
2
5
9
Geothermal (th)
9
10
13
17
Waste (th)
4
5
7
8
489
586
685
855
Total
ITALY SUPPORT SCHEMES: MAIN FEATURE AND PRICES PAID CIP 6/92 Type of RES: all, and the so called “assimilated plants” as well, like cogeneration plants and others Type of support: feed-in for the first 8 years; fees are related with the production cost of a standard conventional plant, taking into account also the typical costs of every source Type of incentive: fees on the produced energy, different for each source Conditions: to have signed a CIP 6 contract. The admission list was closed on 31-12-1996 and the dead-line for the accepted plants is to have all the authorisations by 31-03-2001. Prices: in the following table only the main items are quoted (year 2004) Source
Price [€/MWh]
SHPs run off the river
102,7
Wind and geothermal plants
127,6
PV, biomass, waste
182,1
Comments: by now the CIP 6 is the most efficient incentive system and the most appreciated by investors, but it was abandoned for the high cost on the final users of the energy, depending only on the fact that the most incentives amount was enjoyed by the “assimilated plants”, usually with big capacity (more then 100 MW each).
ITALY SUPPORT SCHEMES: MAIN FEATURE AND PRICES PAID GREEN CERTIFICATES Type of RES: all (waste too) Type of support: obligation of RES production or green certificates acquisition for conventional energy producers in percentage (2% +0,35% every year from 2004 to 2006) on the new production Type of incentive: on the produced energy, the same for every source Conditions: new plants (running after 31-3-1999) for the first 8 years. Type of plant Green Certificates Refurbished and repowered plants only in quota CIP 6 (source) (2004) parte Prices: the 2004 top-price (green certificates owned Small hydro 102,7 ~ 146 by the GRTN) was 97,39 €/MWh for the certificates, Wind 127,6 ~ 146 decreased of the transaction cost of ~3%, to which the energy value must be added, about 52,00 Biomass 182,1 ~ 146 €/MWh, getting a total price of 146 €/MWh, more or Photovoltaic 182,1 ~ 146 less. See the table for comparison (price expressed in €/MWh) Comments: new supporting system, theoretically market friendly, actually it need an impressive amount of rules to assure efficiency and no discriminations among the operators. The first period gives good sounds about the support fee to RES, but they aren’t enough to make the system acceptable for the banks (till now). As it is a “market support system”, the price is the same for the different sources: some difference would be introduced on the duration of the support measure (default: 8 years)
ITALY SUPPORT SCHEMES: MAIN FEATURE AND PRICES PAID ENERGY AUTHORITY DECREE N. 34/05 Type of RES: all Type of support: feed-in system, with prices stated by the Gas and Energy Authority, taking into account the dynamic of the energy prices (40% is connected to the inflation rate) and the capacity of the plants. By 500.000 kWh
95,00 €/MWh
From 500.000 to 1.000.000 kWh
80,00 €/MWh
From 1.000.000 to 2.000.000 kWh From 2.000.000 kWh
70 €/MWh Average price for not eligible consumers (~50 €/MWh)
Type of incentive: fees on the produced energy, depending on the annual production Conditions: plants by 1 MW of installed power Prices: decreasing prices, following the annual energy production For example: for 1 MW plant, producing 3.700.000 kWh/year, the average price is 65,74 €/MWh Comments: quite satisfactory prices, but only to cover the ordinary maintenance costs, not for refurbishing investments, which need significantly higher prices to be repaid. It’s a decree issued on March 2005,which comes from the positive experience of the 82/99 and 62/02 decrees for the SHPs only. As it’s not considered a form of support, it can be cumulated with the Green Certificates system or other support schemes
ITALY SUPPORT SCHEMES: MAIN FEATURE AND PRICES PAID
Others support schemes Type of RES: all, but especially the newest technologies, such as electric production by means of biomass and photovoltaic panels Type of support: grants or financing facilities. Type of incentive: funds to cover a significant share of the research and development costs, but also a contribution to the plant costs. Conditions: innovation and/or plants in disadvantaged areas Formal framework: at regional level ( e.g.: structural funds for disadvantaged areas)
ITALY Data source for the production figures: GRTN – Dati statistici sull’energia elettrica in Italia – 2003
APER P.le R. Morandi, 2 20121 – Milano Tel. 02-76319199 Fax 02-76397608 www.aper.it segreteria@aper.it