Going forward, the main drivers of development are as follows:

• regarding power generation, Edison aims to increase its renewable energy generation by targeting investments in hydropower, wind power and solar power projects to optimise its electricity generation portfolio in Italy and to reduce its carbon emissions. Another of its goals is to enhance its high-performance, low-emission thermal production assets, developing new high-performance power plants to supplement renewable production resources. In 2019, Edison thus bought out EDF EN Italia and announced the construction of two new-generation CCGT power plants at Marghera Levante and Presenzano;
• regarding sales to the final market: Edison’s goal is to strengthen its position on the Italian market by means of an innovative offering, in particular through the development of energy services and a low-carbon offer tailored to the end market, in particular for customers in the industrial, services, and public administration sectors. This aim draws on the brand’s strong positioning, a diversified offering, and on synergies resulting from the strategy of increasing its gas and electricity customer portfolio for the residential and industrial segments;
• regarding gas, Edison is the EDF group’s gas platform. Thanks to skills cumulated over time, since 2017 the company has had a service agreement with EDF enabling it to provide integrated management of all assets and develop EDF’s upstream gas business (in particular the supply of gas and LNG, contract management, medium to long-term optimisation, transport, and storage). The Group also benefits from EDF Trading, responsible for asset optimisation, as well as from short-term operations dealing with interventions on wholesale markets on the continent and in the UK. Over and above optimising the Group’s gas business portfolio, Edison supports development of a sustainable fuel for maritime and road transport, with the construction of a supply chain for marketing small-scale LNG. The company also seeks to contribute to the development of the italian gas market, as well as to the flexibility and security of supply in order to enhance its competitiveness and that of the EDF group.
  

1.4.5.2.3 Edison’s business

Installed capacity and electric generation of Edison in Italy ⁽¹⁾ – 2019

Installed Capacity
in MW

• Thermal ⁽²⁾ 4,640 MW 70%
• Hydropower 1,020 MW 15%
• Other renewables 1,012 MW 15%
• 6,672 MW

Output
in TWh

• Thermal⁽³⁾  16.6 TWh 78%
• Hydropower 3.2 TWh 15%
• Other renewables 1.6 TWh 7%
• 21.4 TWh

(1) Consolidated data.
(2) Including Generation 4.5 GW and Services of Energy Efficiency with the customers 0.2 GW.
(3) Including Generation 15.9 TWh and Services of Energy Efficiency with the customers 0.8 TWh.
NB: The values correspond to the expression to the first decimal or integer closest to the sum of the precise values, taking into account rounding.

In 2019, Italian energy consumption amounted to 319.6TWh, 0.6% lower than in 2018.

Net output of 281.4TWh⁽¹⁾ covered 88% of national consumption, compared with 86% the previous year, thanks to net imports decreasing by 5.7TWh (-13%compared to 2018). The increase in thermal power production, which amounted to 186.8 TWh in 2019 (2.5TWh more than in 2018), as well as solar and wind power(44.4TWh in 2019 vs 39.9TWh in 2018) was partially offset by a decrease in hydropower (47.0TWh, 5.9% less than in 2018) due to unfavourable weather conditions. Based on power generation data for 2018⁽²⁾, Edison is the third-largest producer at the national level, after Enel and Eni. In 2019 its net power output inItaly was 21.4TWh⁽³⁾ which accounted for around 8% of net Italian electricity generation.

National demand for gas was 73.7Gm³, up by 2.2% in comparison with 2018 due to a +10% increase in the use of gas for electricity production linked to a decrease in net electricity imports and lower hydraulic and coal production. Both industrial and residential consumption decreased by 1.9%. Gas imports to Italy accounted for 96% of national demand. Edison carried out 21% of these imports, a total of 14.7 billion cubic metres.

By the end of 2019, the capacity market was established in Italy, with the launch of two auctions for delivery in 2022 and 2023. Edison won 2.8GW of existing capacity for both years, and a total of 1.4GW of new capacity benefiting from a fixed contribution for 15 years.

With respect to hydropower, the “simplification decree” (law dated 11 February 2019, no. 12) covering national regulation of concessions for hydropower plants was approved in law. The new provisions cover the allocation and fees for concessions, and must be implemented in specific regional laws that have not yet been published.

(1) Excl. pumping.
(2) Data published by the ARERA (ARERA report, vol. 1, p. 48, fig. 2.1); 2019 data will be released in mid-2020.
(3) See detailed output data (including energy efficiency services) in the chart below.