ENTSOG GRIP SNC 2014-2023

4.2.4 POWER PRODUCTION IN ITALY

Figure 4.9 shows the evolution of electricity production in Italy for the period 2009– 2012, showing stable aggregated levels in the four years under consideration.

GWh/y

300000

250000

200000

150000

100000

50000

0

2009

2010

2011

2012

Natural Gas Solar Geothermal

Hydro Pumps

Wind

Biomass + Waste

Solids

Oil

Figure 4.9: Power Generation in Italy by source 2009 – 2012 (ENTSOG elaborations on ENTSO-E data)

The use of fossil fuels has shown a small decrease from the 2009 data, although they still remain the main source for power generation (around two thirds). Among them, natural gas plays a leading role, covering a share which, depending on the specific year under consideration, comprises between 43% and 50% of the total gross electricity. Italy’s CCGT plants are mostly newly built units, characterised by high efficiency levels. In any case, as already mentioned as conditions generally common at EU level, the current level of gas prices compared to other sources (coal) combined with the dispatching merit and incentives grant to RES make it hard for gas power plants to stay competitive, and the number of functioning hours has pro- gressively reduced in the last few years. Renewable sources in Italy are experiencing steady growth, reaching near a third of the total power production in 2012. Hydroelectric production, a historic factor in the Italian electricity generation mix, covers about half of the RES share at the end of the considered period. The most promising renewable sources are wind (near doubling from 2009 to 2012 till around 4% of the total) and especially solar, which is moving from a mere 0.2% of total production in 2009 till reaching a staggering 6.3% in 2012 to become the second source of RES generation after hydro.

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South-North Corridor GRIP 2014–2023