Electric and gas activities

Electric and gas activities

Edison and electricity

Edison is the second largest company in the Italian electricity market, behind Enel. The group reached a total generation capacity of 12.1 GW, including half of Edipower's capacity (50%-controlled by Edison), or 3.8 GW (December 31, 2009 data). Overall, Edison's net production in Italy was 50.2 TWh in 2009 (89% of which was thermoelectric). In 2007, with the commissioning of the Simeri Crichi plant in Calabria and the Turbigo plant (Edipower) in Lombardy, Edison concluded a 7,000-MW expansion programme started in 2001.

Production objectives

Starting in late 2007, Edison set new goals, in particular to reach a productive capacity of 13.3 GW (including its stake in Edipower) by 2014, of which 800 MW should be from wind power and 40 MW from small hydroelectric facilities. In the renewable energy sector, Edison plans to invest one billion euros by 2014, both in Italy and abroad. In the medium-term, the company's development plan sets out a goal to launch a new natural gas combined cycle (NGCC) unit in the centre of Italy, with 800 MW in capacity. It also aims to add a new 400 MW CCGT unit, to be commissioned in 2011, to Edipower's Turbigo plant.

Edison and gas: what a market

Edison is number three in the Italian gas market, behind Eni and Enel, with 16.2% of the market in 2009. The same year, Edison purchased 13.2 Gm3 of gas and produced 1.2 Gm3 of gas itself. Of this amount, Edison utilizes 8.1 Gm3 itself, a considerable amount due to the fact that gas is the company's main source of electricity production.

New production

To increase its direct supply, Edison has taken a 10% stake in the offshore regasification terminal in Rovigo, inaugurated in October 2009. The remaining stake is shared between ExxonMobil (45%) and Qatar Petroleum (45%). This stake guarantees Edison access to 80% of the annual gas volume (6.4 Gm3 ) for a 25-year period. Edison has also announced the discovery of 18 billion-mc gas field in the Strait of Sicily. Edison has a 40% stake inthe field, the remaining 60% being owned by Eni. Edison target is to increase its own gas production to 3.1 Gm3 per year by 2015.

Two gas pipelines

Edison is also participating in two import infrastructure projects, Galsi and Igi. Galsi is a gas pipeline that will connect Algeria to Italy through Sardinia. Edison has signed an agreement with Algeria's Sonatrach group for the supply of 2 Gm3 of gas via this new structure. The Igi pipeline will link Greece to Italy, with an annual capacity of 8 Gm3. For this project, Edison has teamed up with Greek distributor Depa.

Edison abroad

Edison is also fostering its international presence. In the electricity sector, it has set up a joint venture with Greece's Hellenic Petroleum to manage a 390-MW CCGT plant already in operation in Thessalonica, and to develop new project for a 400-MW CCGT unit in Thisvi. In the gas sector, Edison has acquired the exploration, development and production rights for a gas field in Abu Qir, Egypt. The company has also obtained "operator" status in Norway, which makes it eligible for concession contracts on Norwegian fields.