ENTSOG South-North Corridor GRIP 2017 - Main Report

4.2.4 ITALY

The Italian energy policy framework is broadly designed by an Interministerial Decree, called National Energy Strategy (also known as “SEN” – Strategia Energetica Nazionale ) approved in March 2013 after a wide consultation launched in the pre- vious year. The SEN has not currently the character of a law and its role is to set tar- gets and draw directions for the development of the Italian energy sector, to be im- plemented via other specific measures. The main goal of the document is the improvement of the Italian energy sector in terms of competitiveness, sustainability, security of supply and diversification of sources. In the short period (“2020 horizon”), the modernisation of the energy industry is expected to be driven by the following factors: \\ strong investments both in the new “green and white” economies (RES and ef- ficiency) as well as in the traditional sectors, including electricity and gas net- works, regasification plants and storages \\ reduction of CO ² emissions and energy efficiency measures, both exceeding the EU 20-20-20 targets set for Italy \\ growth of renewable energy sources, so that they will become by 2020 the primary energy source in the electricity sector together with natural gas The SEN identifies specific measures for the gas market to enhance its competitive- ness, to improve security of supply and to reduce the dependence on import via source diversification. More specifically with regards to gas infrastructure, the document lists a series of new strategic projects, including particular references to storage capacity, LNG terminals and other import infrastructure. The need to develop storage capacity is clearly highlighted in the SEN, which indicates the need to increase the system capacity margin by expanding existing storage facilities and commissioning new sites. These enhancements are aimed to increase the flexibility of the gas supply mix, preventing emergency situations during peak demand conditions and/or supply interruption. About the LNG market, the SEN states that regasification capacity is to be expanded to improve LNG access to the Italian market, to further improve supply diversification and to exploit potential market opportunities. For other import infrastructure, a key role is played by project(s) which will enable Italy and Europe to receive energy supplies from the Southern Corridor. The import of gas from the Caspian region would be in particular facilitated by the Trans-Adriatic Pipeline (TAP), although new gas import projects from the Mediterranean area are not excluded. The SEN also promotes the availability of virtual and physical reverse flow capacity towards the markets of Central and Northern Europe. All the above mentioned measures are aimed to support the concept of a Southern European hub, making the Italian gas market liquid, competitive and well integrated with the other developed hubs, with prices in line with the main European countries. The SEN is covering with more indicative objectives also a longer time span (“2050 horizon”), foreseeing even stronger efforts in terms of energy efficiency and RES penetration to sustain a decarbonised economy. Notwithstanding expectations of decrease in terms of annual consumption, also in this wider time horizon the key role of gas for the energy transition is clearly recognised.

South-North Corridor GRIP 2017 |

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