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Energy, Orange book: the five challenges of utilities in city services

The third Report edited by the Utilitatis Foundation, Utilitalia and EfficiencyKnow was presented in Rome. It identifies new trends and business scenarios for former municipal companies, in line with the European objectives of the 2016 Winter Package which put energy efficiency in first place (30% by 2030) in the transition towards a "decarbon" economy. Here are the sectors and companies to focus on.

Put sensors in your cannons. Or rather, it's time to push on energy efficiency to put pollution and CO2 into the corner that suffocate big cities. But it's time to do it by following the new trends and scenarios opened up by the technological revolution and digitalisation: services on demand (on demand, such as TV) also in energy for public lighting or to improve efficiency in the management of water, waste, thus including the environment and sustainability. Starting with urban mobility with electric or methane-powered cars and buses.

 On the eve of the presentation of the new Sen (National Energy Strategy) that the government will illustrate in the G7 Energy meeting of 9-10 April, this is the message launched by theOrange Book, the research conducted by the Utilitatis Foundation, Utilitalia and EKN – EfficiencyKnow, now in its third edition and presented on Wednesday 29 in Rome. The focus is on energy efficiency with a view to new services for cities. “Not just an ethical requirement – ​​explained Federico Testa, president of Enea – but a real business in which utilities can play a fundamental role”. From public lighting with street lamps, not only with LEDs, but which adapt to the flow of cars and inhabitants; to the aqueducts that could recover considerable resources if they digitized services and network monitoring; to biomethane connected to separate waste collection (Hera has just launched an investment of 30 million to produce it from compostable); to district heating and sustainable mobility, two indispensable resources to fight the main sources of Co2 and dust: transport and, of course, the heating of buildings.

If Europe has launched the slogan "Efficiency first" to manage the transition towards the best of all possible worlds, one in which all primary energy will be supplied from renewable sources and therefore energy saving will become a non-objective, what can Italy do to ensure the transition between the old and the new "decarbonised" energy model? A lot in terms of savings. And what can utilities do to encourage it and help local authorities in the difficult management of large urban centres? The president of Utilitalia (473 member companies) and of A2A, Giovanni Valotti, explains that "utilities are ready to face the new challenges" but the Orange Book reveals that only A2A, Hera, Iren, Agsm and Cam have started significant interventions in the 5 key sectors identified, confirming a 2-speed Italy with the North running while Rome and the South are lagging behind in terms of energy and efficiency.

A few figures help clarify. Methane mobility: Italy holds the technological leadership in the world and the record in Europe in terms of vehicles that use this fuel (about 972.000 natural gas vehicles at the end of 2015, about 2% of the total). They could become 1,3 million in 2020 with a consumption of 2 billion cubic meters of gas and a significant reduction of dust compared to today.

Different the speech of electric mobility: here we are far behind, despite the fact that development in the next few years is certain and the EU believes that electricity consumption linked to mobility will go from 0,3% in 2014 to 9,5% in 2050 in Europe where today 24% of the total greenhouse gas emissions is attributable to transportation. In this sector, the White Paper requires the Member States of the European Union to reduce emissions by 60 percent by 2050. The role that utilities can play is significant. So far the Court of Auditors has certified that only 6.286,28 euros were spent out of the 50 million euros allocated from 2013 to 2015 for the construction of charging points for electric cars.

Enormous energy savings, and consequent cost reductions, are possible in the water management: the energy consumption of the aqueducts is estimated at 3.500 million kwh, 840 million only for water losses (30%) with a cost of 130 million. Bringing them back to normal levels (15%) with automation and digital technologies 63 million a year would be saved. Another 8,4 million in avoided expenditure can be obtained in pumping, not to mention the purification cycle.

Current supports are enough (especially i White Certificates) to stimulate and guide operators on the difficult terrain of energy efficiency? If the Report claims that the coverage ratio of the Certificates is shrinking and prices are rising, the president of the Gse Francesco Sperandini he replies instead that "the TEE (energy efficiency certificates, ed.) market is not short, in fact it is 20% longer than two years ago and yet there has been an increase from 100 to 270 euros in certificates which are now 206 euros”. Sperandini, pending the Authority's decisions on these changes, has not ruled out that they are linked to "opportunistic" (read: speculative) behaviour. And in any case, he underlined the need to reward "the best companies" to avoid bubbles in the underlying.

Il Environment Minister Gian Luca Galletti he underlined the need for a new governance to manage the very rapid changes that link energy and the environment: “The consolidation of the market and the aggregation of utilities – he said – are an essential point”. 

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