First the war in Ukraine, then the tensions in the Middle East and finally the latest shock of the American elections. There has been no peace for years energy market at a global level. There is discussion about oil production (“drill baby drill”), there is argument in Europe about the fate of the green deal and meanwhile theenergy is increasingly expensive.
The problem is for everyone, certainly not just Italian. Just look at the wholesale prices in the Old Continent and it is clear how the situation of the Peninsula is comparable to that of other European states.
Comparing the most recent data on the cost of energy per MWh, we note that in percentage terms the increases have been more contained for Italy than for other large nations.
The cry of pain of the industry of our country, however, remains. And this is because, percentages aside, the final price in Italy remains high. And so for weeks now, between events, Instagram or interviews, the Confindustria world, especially that part linked to large companies, has been asking that something be done for bridging the competitiveness gap with European competitors.
Years ago, things were different. History tells us that the wholesale price of electricity for energy-intensive companies (i.e. those whose activity is highly dependent on energy use) in Italy tended to be aligned with other European countries until 2020. Then the energy crisis, combined withabsence of nuclear from the generation mix and to policies of strong subsidy implemented in some European countries, have changed the picture significantly. Net of support measures, the average wholesale price in Italy in the period between 2015 and 2020 was around 50 euros/MWh, which jumped to around double in 2023-24 after the crisis.
It must be said that already huge resources have been dedicated in recent years to supporting the competitiveness of businesses, and others measures are on the home straight to further reduce the cost differential compared to other European countries.
Few people know that for years the issue of competitiveness has been considered a priority by the country and for this reason companies have been able to enjoy a series of benefits financed through bills. The Iinterconnector It is a measure introduced in 2010, and allows energy-intensive users to pay, on a portion of their consumption, a price equal to that of neighbouring markets, which is structurally lower (particularly in France due to the presence of nuclear power). The mechanism costs the system around 400 million a year. Theinterruptibility It has been active since 2008 and provides access to competitive procedures for the provision of the temporary load interruption service in case of need of Terna and is worth approximately 500 million. A service activated only in rare cases of emergency but which guarantees energy consumers a stable cost compensation. Finally, there is the "reimbursement of indirect CO2 costs”, a measure activated in 2020 that offsets the costs of CO2 transferred by thermoelectric energy producers in the final price of electricity, an incentive that is currently worth around 140 million and that the government has planned to double in 2025.
It is precisely this last item, i.e. the reimbursement of indirect CO2 costs, that is the one on which the Commission has strongly relied. Germany after the nuclear phase-out, to help its businesses and bring the final price to be extremely competitive.
Finally, energy-hungry people also benefit from thetotal exemption of some tariff components to cover general system costs (the so-called ASOS, costs for the support of renewable sources) for a total of approximately 1,1 billion euros.
Further measures are planned for 2025 for energy-intensive companies which, added to those already described, could bring the final price for these companies to values comparable with those of the Spain and much closer to those of Germany e France.
Among the measures mentioned there is for example Energy Release 2.0, aimed at companies with high electricity consumption who will be able to enjoy competitive prices in exchange for a commitment to install new renewable capacity to be built within three years.
Will it be enough? The world of politics hopes so. And the minister Gilberto Pichetto Fratin In the meantime, it is accelerating the introduction of nuclear technology as much as it can.
For those in the know, this is a necessary and inevitable solution. But the times for the new generation nuclear power they will still be long and therefore this new technology will not bring immediate benefits.
In the short term the real solution it is the production from renewables. A solution that exists in a paradox: everyone calls for it, but few authorize it. And so there are large quantities of energy on the launch pad, but which do not see the light of day waiting for permits or tied up in bureaucratic delays. In short, there are both renewable energies and approval processes.
Then there is the issue of thehydroelectric, which among renewable sources is the one that guarantees the greatest energy contribution and above all is the most programmable because it is not subject to the interruptions that wind and solar energy suffer.
It's a shame that, even in this case, Italy scored an own goal and the Minister for European Affairs said it clearly. Thomas Foti in a series of interviews with agencies and newspapers.
“On the issue of putting hydroelectric concessions out to tender, we need to find a point of “agreement” with Brussels because Italy would find itself in a situation of disparity compared to other European countries”. In short, “the rules on concessions wanted by the Draghi Government penalize us”, is the minister’s thesis. All of Italy’s diplomacy will be needed to unblock the situation, but energy-hungry people should root for a solution that quickly unblocks investments and electricity.
