In July 2014, the American Council for an Energy-Efficient Economy (ACEEE) released the second edition of the International Energy Efficiency Scorecard: Italy ranks second among the 16 most developed economies in the world, among other very modest gap from Germany at the top of the standings. In this regard, see Figure 1 which summarizes the report in question: the 16 economies in question cover more than 81% of world gross domestic product and about 71% of world electricity consumption. Using a compelling methodology, the researchers looked at 31 metrics, split between policy and performance, to assess how effectively these economies use energy. Policy metrics are tracked based on the presence – in a country or region – of best practices: examples include the setting of national energy savings targets, fuel economy standards for vehicles, energy efficiency standards for the appliances. Performance metrics measure energy consumption: for example, average km per liter of passenger road vehicles or energy consumed per square meter of floor space in residential buildings. The analysis develops in the three main sectors responsible for energy consumption in economically developed countries: construction, industry and transport.
The study had a large global impact. We ourselves have been contacted by international interlocutors interested in better understanding how our country has operated to achieve these objectives, what are the rules and legislation adopted, and so on. Therefore, an issue of the magazine is welcome where ample space is dedicated to the issues of energy efficiency (EE).
In this regard, I would like to underline the first report by CESEF, the Research Unit on efficiency that we have recently activated, which examines the topics under examination from an innovative perspective, and whose synthesis is reported in the following pages together with a series of proposals for developing or improve the system (see also: www.agici.it/efficiency-energetica). The main results of the study will be presented in an ad hoc event to be held on 7 October in Milan in the presence, among others, of the Deputy Minister of Economic Development, Claudio De Vincenti, and of the President of the AEEGSI, Guido Bortoni. The perspective from which CESEF positions itself is industrial and financial and cannot be separated from a global reading of the phenomenon; it should also be emphasized that the EE sector has considerable profiles of complexity and articulation, often making it difficult to draw clear boundaries; therefore CESEF also proposes a conceptual systematization that is useful (indeed necessary) in terms of public policy and corporate strategy. In this sense, the contributions of Finmeccanica and CPL Concordia are also of interest, which place the issue well in a business perspective.
Going back to Italy's top-ranking position, this corroborates our idea that EE is an important growth opportunity for our country that needs to be properly exploited. And this mainly for two reasons:
1) The development of EE has important repercussions on an economy's ability to compete;
2) The technologies associated with EE have an international market potential destined to grow significantly in the future, creating important business opportunities.
As regards the first point, the ability to compete, I think the theme is well known: every person with common sense (not conditioned by specific interests) understands its relevance well. The cost of products and services, especially for energy-intensive companies, is also determined by the cost of energy: reducing it means giving a hand to companies already in difficulty due to the relative onerousness of many other production factors. If anything, the issue lies in asking how to intervene effectively to reduce the impact of the cost of energy both at the level of public policy and corporate strategy.
But perhaps the least known point is the second. In our study of the international greentech markets (above all renewables) we have in many cases well understood that the topic of EE is certainly very relevant. There are at least three reasons.
Obsolete or outdated industrial infrastructures and technologies. In some countries, such as Russia for example, there are industrial and productive activities which, precisely because they are historical, generally have very substantial margins of recovery in efficiency, including energy efficiency. For example, Fenicie of the Edf group has developed its presence in the Russian automotive sector for several years by playing on these factors. This situation affects many other nations, practically on all continents.
Savings on energy resources/reserves destined to run out. A good example is that of Saudi Arabia and the other Gulf countries which have realized that, with the expected growth of the population (both in quantity and in terms of living standards), domestic energy consumption is destined to grow significantly up to to reduce and, eventually, to cancel the export capacity of energy carriers on which these economies live. Paradoxically, even in these countries very rich in gas and oil reserves (not all, indeed, such as Dubai for example), renewable sources and EE have become central issues of attention in a medium-long term growth perspective ( although not without internal obstacles of various kinds). See, for example, the Etihad Esco, founded by the aeronautical company that recently became a member of Alitalia, which aims to develop the Esco model in Dubai.
Reduce the need for investment in new electricity generation capacity. Even in those countries where there are potential sources of energy, and where demand tends to exceed supply in a situation where prices tend to be high, it may also appear convenient to invest in solutions that reduce consumption. An example is that of the Brazilian energy plan of 2009-2030 which envisaged a series of interventions in EE also to deal with production problems. German industry is working hard in the large South American country precisely in the greentech sector.
So how to play a role in this specific sector? The observation of the competitive dynamics taking place at a global level, which obviously deserves further study, shows how some companies and some countries have already moved with determination. The case of Germany has already been mentioned, which is developing precise supply strategies for energy production plants but also for efficiency solutions; the impression is that there are elements of great synergy in thinking of global solutions capable of resolving energy supply problems where efficiency and new installed capacity go hand in hand. But also various companies, think of the GDF-Suez case (through Cofely), have decisively opted for a strategy strongly based on the proposition of EE solutions.
It's Italy? First of all, I believe that awareness in the country of the relevance of the issue in terms of industrial policy must be developed. So far its full significance has not been grasped and it has tended to be treated as an internal matter based heavily on the technicalities of white certificates and other supporting issues. All this is right and welcome if it places us in second place in the world. But the question must be approached in a broader key and a serious debate must be activated on this.
In this context, I believe that Enel, with its large international presence also due to Enel Green Power, could also play an important role in driving Italian industry as a whole, especially in a context such as the current one where energy consumption in Italy does not they are certainly destined to grow rapidly in the coming years (I apologize for the euphemism). Will there be room for this in the growth strategies of the Group which has recently had a new and authoritative top management?
