Universal Registration Document 2022

1.4.5.2.3.1 Electricity generation

Power generation in 2022

In Italy, as of 31 December 2022, Edison’s installed power generation capacity totalled 7.2GW, with net electricity output of 19.7TWh in 2022, an increase of 12.7% compared to 2021 (including EESM ⁽¹⁾).

Based on power generation data for 2021 ⁽²⁾, Edison is the fourth-largest producer at the national level. In 2022, its net power output in Italy accounted for around 7.2% of net Italian electricity generation.

The increase in Edison’s power generation in 2022 was mainly due to the increase in thermal generation (15.7TWh, excluding EESM, i.e. +28.9% compared to 2021). This increase offset low hydroelectric production. In 2022, Edison’s hydro power output totalled 1.4TWh. The decrease of 46.1% relative to 2021 was mainly due to the sharply lower rainfall. Wind power and other renewable energy production amounted to 1.9TWh in 2022 (down 2.3% on 2021). This decrease was partially offset by changes in scope due to the acquisitions of Vibinum Srl and Aerochetto Srl in the third quarter of 2021, and of Winbis Srl and Cerbis Srl in July 2022, as well as the commissioning of the Mazara 2 plant in August 2022.

The generation fleet

Edison’s generation fleet (excluding EESM) is currently made up of 107 hydropower plants, 14 thermal power plants (CCG), 53 wind farms and 56 photovoltaic plants. Combined-Cycle Gas Turbines account for 82% of electricity generation (excluding EESM), while hydropower accounts for 8% and combined wind and other renewable energies 10%.

In order to guarantee the flexibility and security of the national electricity system, Edison continued the construction of the Marghera Levante (780MW) and Presenzano (760MW) CCGT plants, launched in 2019 and 2020 respectively. These two installations are highly flexible and efficient (with energy efficiency of 63%), have a low environmental impact (with CO₂ emissions 40% lower than the national average and 70% fewer NOx emissions). Commissioning is expected in 2023. The two power plants will benefit from the fixed contribution of €75,000/MW for 15 years linked to the capacity market, with a positive impact on the volatility of Edison’s margins, provided the commissioning deadlines and specific availability criteria are met.

In July 2022, Edison acquired a 66MW wind farm in Campania. Edison already has another 70MW wind farm in the region. Following this acquisition, it will operate one of the largest onshore wind farms in Italy with a total capacity of 136MW. Edison also inaugurated a wind farm in Mazara del Vallo (Sicily) in June 2022. It

thus confirms its commitment to the development of renewable production. With this new 45MW facility, Edison’s installed wind power capacity exceeds 1GW, thus reaffirming its position as the Italian leader in this strategic sector.

In addition to wind power, the company has also confirmed its intention to pursue growth in other renewable technologies. At this time, the company has seven new solar power plants under construction, two in Sicily and five in northern Italy. In January 2022, it also finalised the acquisition of Energia Italia’s mini-hydro plants and commissioned the new Saint Barth mini-hydro plant. Lastly, construction is underway on a new 2.7MW mini-hydro plant in Piedmont.

In the future, it will continue its expansion in renewables through both organic growth and partnerships with third-party developers, including options to acquire projects for new facilities.

Internationally, Edison is well-established in Greece, where it owns a 50% stake in ElpEdison SA, one of the country’s main electricity operators. ElpEdison owns two CCGT plants: one in Thessaloniki (426MW) and the other in Thisvi (410MW), which was built by Edison and is gradually expanding its marketing activity, in particular in the residential market.

Lastly, Edison holds a 20% stake in Kraftwerke Hinterrhein AG, which operates 626MW of hydropower in Switzerland.

During the year, Edison sold a 50% stake in its subsidiary Ibiritermo in Brazil, which operates a 226MW CCGT plant.

1.4.5.2.3.2 Gas business

For the implementation of its gas strategy, the EDF group, through Edison, benefits from experience along the entire value chain of natural gas. Edison’s Italian gas supply portfolio is based mainly on a series of long-term agreements. As of the end of 2022, these covered:

• approximately 14.5 billion cubic metres almost entirely via gas pipelines imports and LNG from Libya, Qatar, Azerbaijan and Algeria;
• 6.6 billion cubic metres bought on the market, through short-term contracts, or produced in Algeria.

In 2022, total sales of gas amounted to 21.1 billion cubic metres (compared with 18.9 billion cubic metres in 2021). Edison delivered 5.0 billion cubic metres of gas to the industrial sector, 1.6 billion cubic metres to the residential sector, 5.4 billion cubic metres to the thermoelectric sector (including Edison’s own requirements), 9.0 billion cubic metres on the wholesale market, and 0.1 billion cubic metres of sales of production abroad.