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Energy: concessions for geothermal energy at risk

Tuscany mobilizes for the continuation of the concessions - Enel announces investments and hirings.

Energy: concessions for geothermal energy at risk

A paradox to be overcome also to send a signal to those working for a real national energy mix. Tuscany is once again attracting attention for geothermal energy. The paradox lies in the fact that CGIL, CISL, UIL have called for on 30 June an 8-hour strike for the sector, just when Enel Green Power Italy – the company most present in the sector – is hiring and investing. Two opportunities that could soon vanish if the concessions expiring in 2024 are not renewed. The last meeting between Enel and Filctem Cgil, Flaei Cisl and Tuscan Uiltec Uil focused interest on the development of the historic energy source PNRR and geothermal energy, a gap to be filled which it occupies only in the Tuscan provinces 5 thousand workers and affects 16 Municipalities. 

Assuming that the old concessions must continue , unions fear that without a quick political decision the companies engaged in the business will stall their plans. It won't be easy. Enel is aiming for an extension of existing contracts of at least 15 years, the minimum time to recover the new capitalizations and maintain the development trend. Geothermal production supplies 34% of the regional energy, it can increase but the plants need to be modernised. In short, strategies cannot disregard the certainty of the status of concessionaires. Evidently the question also concerns other parts of Italy where the heat of the earth is exploited and which the national energy and climate plans favor Italian GDP towards full recovery: what a difference with previous crises .

The negotiation makes its effects felt new Procurement Code che will enter into force on 1 January 2022. According to the new rules, the concessionary companies will have to entrust 80% of their activities to the market in order not to further strengthen monopoly positions. A system to curb the maintenance of contracts to the detriment of competition and tenders. In the meeting with Enel - say CGIL, CISL and UIL - we asked the company for a strong commitment alongside the union to amend article 177 of the Procurement Code. “ If this article, unreasonable and unfair, is not modified, the companies of the Enel group, like those of other entities operating in the electricity and gas sectors, will have to outsource the activities carried out internally". All this raises fears of a high number of redundancies. The Region and the competent Ministries are urged to find a solution which must, however, take into consideration the double requirement of continuity and openness to the market. A road complicated by the EU's insistence on applying the rules of the competition in a strategic sector. The sense from which the disputed article of the Procurement Code emanates is precisely that of ensuring greater transparency in procurement and in the principles of liberalisation. On the other hand, the continuation of existing concessions without opening up to the market in this case is weighted by new industrial initiatives already agreed with the trade unions.

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