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III. NATIONAL ACTIVITIES ITALY CHAPTER 12 Italy 12.1 Introduction This chapter outlines the development of the geothermal activities in Italy in the year 2004. Geothermal resources in Italy are mainly used to produce electricity. The first industrial power plant dates back to 1913. Since then, geothermal installed capacity has increased, reaching 862 MWe at the end of the year 2004. In 2004 geothermal net generation exceeded 5.1 billion kWh. Though this represents only 1.9% of the total domestic generation, it meets about 24% of the electricity demand in Tuscany, the Italian region where almost all the plants are located. In addition to the electricity generation, geothermal fluids are used as heat sources, mainly for spas, space and district heating and greenhouses. Thermal energy supplied in 2003 was about 213 ktoe (thousand tonnes of oil equivalent). At present, Enel Green Power carries out all the activities related to the exploration, development and exploitation of geothermal resources in Italy for electricity generation. The company is fully owned by ENEL Group and was established in October 1999 with the name of Erga; the name was changed to Enel Green Power in January 2002. The mission of Enel Green Power is to develop electricity generation from renewable energy sources (geothermal, small-hydro, wind, solar and biomass) both in Italy and abroad, in order to achieve the reduction of CO2 emission, according to Kyoto Protocol. Enel Green Power received the 2002 Global Energy Award as best operator in the renewable energy field. 12.2 National Policy According to the European Directive 96/82/EC aimed at creating a single market for electricity in the EU, the Italian government issued a decree on 19 February 1999, known as “Bersani Decree”, which established the basic rules for the electric power industry. According to the decree, as from 1 January 2003, no individual operator is allowed to generate or import more than 50% of the domestic overall consumption of electricity. In order to comply with this requirement, ENEL has been obliged to sell 15,000 MW of its generating capacity to domestic and foreign operators. In addition, as from the year 2002, all operators (importers and producers of electricity from non-renewable sources) must generate or buy a fixed share of electricity from “new renewable plants” (generating plants using renewable energy sources, commissioned or repowered after 2 April 1999. For repowered plants, only the additional capacity is taken into account). For each operator, the share was initially set at 2% of the total energy exceeding 100 GWh produced or imported in the year. Cogeneration, plant auxiliary consumption and exports are excluded from this requirement. Applied to the Italian scenario, the 2% share presently corresponds to about 3.5 billion kWh, an amount large enough to spur the market effectively. A recent decree, issued on 31 January 2004, increased this share starting from the year 2005. The conceived mechanism provides a great deal of flexibility: operators are allowed to meet their obligations by generating directly or by purchasing some or all of the “green” energy required or merely emission rights (called “green certificates”). IEA Geothermal R&T Annual Report 2004.doc 69PDF Image | Geothermal Energy Annual Report 2004
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