MarketElectricity sector in Italy
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Electricity sector in Italy

Italy's total electricity consumption was 302.75 terawatt-hour (TWh) in 2020, of which 270.55 TWh (89.3%) was produced domestically and the remaining 10.7% was imported.

Overview
In 2018, gross electricity production in Italy reached 289.7 TWh, down 2.1% compared to 2017; thermal power stations ensured 66.5% of production and renewable energies 33.5%: hydraulic 17.4%, solar 7.8%, wind 6.1% and geothermal 2.1% (note: this statistic includes biomass and waste in the thermal). The strong growth of renewable energies (+47% since 2010) has made it possible to reduce fossil fuel-based production by 27% between 2010 and 2020; the drop in demand caused by the COVID-19 pandemic in 2020 is however partly responsible for this decline in fossil fuels. == Power sources ==
Power sources
For a detailed picture of the sources of electric power in Italy (including decommission nuclear plants and renewable energy projects), see the list of power stations in Italy. Fossil fuels , Lombardy Fossil fuel thermal power plants provide the majority of electricity production in Italy, with a total of 192.1 TWh in 2018, or 66.3% of the electricity produced in the country. During the decade 1997–2007, natural gas power plants experienced strong growth, rising from 24 to 55% of total electricity production; since 2009 they have fallen sharply, falling to 33.5% in 2014, but still representing 53.4% of thermal generation; from 2015 to 2017, they resumed their progression: +35% in two years, rising to 48.4% of total electricity production and 67.2% of thermal production in 2017 (66.9% in 2018); The fuels consumed for the production of electricity in 2018 were: • 10,633 kt of coal and lignite; • 23,592 million m3 of natural gas and 4,772 Mm3 of derived gas; • 585 kt of petroleum products; • 16,718 kt of other solid fuels (biomass, etc.) and 3,496 Mm3 of other gaseous fuels (biogas, etc.). Enel launched a call for projects for 23 old power plants being closed, representing 13,000 MW, out of a total of 54 power plants; the Tor del Sale combined cycle power plant in Piombino, near Livorno in Tuscany, will serve as a pilot site. In 2017, Enel plans to achieve its goal of zero CO2 emissions, initially set for 2050, 10 years in advance. Enel Green Power installed 2,500 MW of renewable energy plants in 2017. Enel had already closed 13,000 MW of old fossil thermal power plants in 2015. Hydroelectricity Italy is the world's 16th largest producer of hydroelectric power, with a total of 44,257 GWh produced in 2016. Energy from hydro accounted for about 18% of the national production in 2010, with hydroelectric plants located mainly in the Alps and the Apennines. In 1883, the engineer Lorenzo Vanossi designed and installed in Chiavenna the first electric generator in Italy powered by hydraulic power. From the beginning of the 20th century to the 1950s, hydroelectric power accounted for the majority of generated power, but as energy needs increased approaching the 21st century that percentage dropped significantly. in Entracque, Piedmont Production by type of development evolved as follows: The number and power of plants by size is: Geothermal , Tuscany Italy was the first country in the world to exploit geothermal energy to produce electricity. The high geothermal gradient that forms part of the peninsula makes it potentially exploitable also in other regions; research carried out in the 1960s and 1970s identified potential geothermal fields in Lazio and Tuscany, as well as in most volcanic islands. In 2019, Italy held 6th place in the world for geothermal electricity production with 6.07 TWh, or 6.7% of global geothermal production. 27 plants have less than 20 MW and 4 more than 40 MW; In 2018, Italy was the 5th largest producer of wind electricity in Europe. In 2017, wind power provided 17% of renewable electricity, 6.0% of the country's electricity production and 5.3% of its electricity consumption. , Campania Wind farms are mainly located in the six southern regions: 90% of the number of sites, 90.5% of the installed capacity and 90.6% of the production in 2017: the residential sector represents 74% of the total, and the tertiary sector 20%; there is a maximum settlement density on the Adriatic coast, from the Marche to Apulia: the average size of units fell sharply: 1.4 MW in 2017 compared to 4.3 MW in 2005 and 4.8 MW in 2009. In addition, a new subsea HCDC power line was installed in 2015 between Sicily and Malta. Electricity imports amounted to about 40 TWh in 2008. This was the second highest import in the world, after Brazil. Most electricity imports into Italy come from Switzerland and France. Import accounts for around 10% of total consumption. Nuclear power in Trino, Piedmont, which shut in 1990. Nuclear power in Italy is a controversial topic. Italy started to produce nuclear energy in the early 1960s, but all plants were closed by 1990 following the Italian nuclear power referendum. Much concern has arisen because Italy is in a seismically active area, placing it at greater risk for a nuclear accident. Four nuclear power plants have been active in Italy: Minister of Economic Development Claudio Scajola proposed to build as many as 10 new reactors, with the goal of increasing the nuclear share of Italy's electricity supply to about 25% by 2030. Former Prime Minister of Italy Silvio Berlusconi and President of France Nicolas Sarkozy made an agreement to construct four nuclear power plants in Italy in February 2009. The actual construction of nuclear power is unlikely due to the lack of public support and environmental and construction concerns. However, following the 2011 Japanese nuclear accidents, the Italian government put a one-year moratorium on plans to revive nuclear power. On 11–12 June 2011, Italian voters passed a referendum to cancel plans for new reactors. Over 94% of the electorate voted in favor of the construction ban, with 55% of the eligible voters participating, making the vote binding. ==Renewable energy targets==
Renewable energy targets
, Tuscany. Italy is one of the world's largest producers of renewable energy. Italy had a 17 percent target in its total energy use set by the European Union for 2020 and was close to meeting its goal having reached 16.2% of renewable energy consumption in 2014. The share of renewable electricity was 38.2% of national energy consumption in 2014 (in 2005 this value was 15.4%), covering 16.2% of the total energy consumption of the country (5.3% in 2005). whose average target in wind is 14% in 2020. EWEA's analysis of the Italy's plans reflect disappointment since the action plan suggests an annual slow-down of the wind power generation capacity rate and the rates of authorization for new plants. ==Cost of electricity==
Cost of electricity
Italy has one of Europe's highest final electricity prices. In particular, unlike all other countries, price per kWh tends to be lower for lower consumption levels. This policy aims at encouraging energy saving. Higher final prices are also a consequence of the extensive use of natural gas, which is more expensive than other fossil fuels, and the expenses from renewable energy incentives, which is expected to reach a total cost of more than €10 billion in 2012. ==Consumption==
Consumption
According to the International Energy Agency, the breakdown by sector of final electricity consumption in Italy has evolved as follows: ==Transmission and distribution==
Transmission and distribution
, Emilia-Romagna The transmission of high voltage electricity in Italy is provided by Terna. The transmission network has 63,500 km of HV lines, 22 interconnection lines with foreign countries, 445 transformer stations. ==History==
History
is clearly visible. The plant, built in 1883, was the first power plant in continental Europe. The plant, called Santa Radegonda, was the first power plant in continental Europe. Following the development of high-voltage transmission on long distances, Italy began to utilize hydroelectric power. Several hydroelectric plants have been built on the Alps and the Apennines since the beginning of the 20th century. The first geothermal power station in the world was built in Larderello in 1904. Renewable sources met almost all of the country's electricity demand until the 1960s, when population growth caused an increase in electricity demand. Nationalization The electricity sector in Italy was private until it was nationalized in 1962 with the creation of a state-controlled entity named Enel, with a monopoly on production, transmission and local distribution of electric energy in the country. The new entity incorporated all the previous private companies operating in Italy since the end of the 19th century. The nationalization followed a general tendency in Europe after World War II: France and Great Britain nationalized their sectors in 1946 and 1957 respectively. This was seen as the only solution for an efficient and reliable electricity supply given the natural monopoly nature of this sector. The new entity, which absorbed more than 1,000 previously private companies, faced a rapid growth of electricity demand during the subsequent decade. This demand was largely met with fossil-fuel powered plants. This trend changed partly after the 1970s oil crisis, which induced Enel to rethink its energy strategy. More investments were devoted to nuclear energy. The liberation of the electricity sector from government control started in the late 1990s following European Union directives. Directive 96/92/CE of 1996 followed the tendency towards privatization. It was based on the adoption of different regulations for production and transmission: production and trading should be free and managed by private companies, while transmission and distribution, being natural monopolies, should be regulated by the state. This first directive suggested a progressive liberalization of the electricity market and the "unbundling", namely the clear separation of monopolistic activities from free-market activities in the companies involved in the electricity sector. This separation was effected by clearly separating budgets for different businesses. Some of Enel's core activities were passed onto other companies. Control was definitively transferred by Enel as a result of the sale to Cassa Depositi e Prestiti on 15 September 2005 of 29.99% of Terna's share capital. In order to improve competition and to develop a free market for production, Enel was also forced to sell 15,000 MW of capacity to competitors before 2003. Following this, three new production companies were created: Endesa Italia, Edipower and Tirreno Power. A new European directive, 2003/54/CE of 2003, and a subsequent Italian decree, requested free electricity trading for all commercial clients from July 2004 and, eventually, a complete opening of the market for private customers from July 2007. By 2025, Italy's MACSE 10 GWh grid battery auction price dropped to about €50/MWh, competitive with natural gas generators. ==Market share==
Market share
As of 2023, ENEL controls more than 50% of the market, Eni has a market share of around 20%, another thirty companies control the remaining 20% thus reaching 90 and a myriad of medium-small operators who with the remaining 10% have over 460 different companies. ==See also==
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