Edison develops sells and manages energy and environmental services.
In May 2022(1), Edison launched Edison Next. Already active in Italy, Spain and Poland, Edison Next is Edison’s development platform for energy efficiency services, technologies and expertise. In 2022, the company provided services to over 65 industrial sites, over 2,100 public and private establishments and over 280 cities. Its strategic plan for 2030 forecasts investments of up to €2.5 billion in Italy and Spain and an EBITDA of €300 million.
The platform also offers public authorities energy services for buildings and urban regeneration solutions. Edison Next also assists communities, local areas and public authorities in their decarbonisation process and with public lighting.
In May 2022, Edison Next completed the acquisition of Citelum Italia, which does business in Italy and Spain and is the second largest public lighting operator in Italy. This acquisition has brought new expertise in the field of public lighting, intelligent signals and smart cities. In Spain, Edison Next also acquired control of Sistrol, a company that develops energy consumption management and efficiency technologies. In Spain, Edison Next managed over 100 buildings in the tertiary sector in 2022 and provided its services to over 40 cities.
The business models are adjusted to customer requirements: Edison designs, builds, and manages assets for its customers, including cogeneration/tri plants, solar power installations, substations, thermal power plants for industrial use, cold production plants, compressed air plants, fluid distribution systems (electricity, gas, hot and refrigerated air, compressed air, industrial gas, water) and industrial water treatment plants. The range of services is completed by a consulting activity in terms of energy, management of environmental securities and internal and external training for customers and partners.
Edison’s customers are in the industrial and business sectors. Contracts with the Stellantis group still form a large part of the business with major-account customers.
Projects are developed with customers in the form of industrial partnerships or performance agreements. The business model is flexible, and may range from customer assistance to third-party financing or direct investment by Edison in the projects (the Esco model).
In the public authorities market, Edison Next, through its services platform, technologies and expertise, offers a complete range of solutions designed to improve energy efficiency, reduce environmental impacts and create value for local areas.
Edison is also developing a biomethane production chain and aims to have 10 biogas plants in operation by 2030. In 2022, Edison Next Environment became the majority shareholder of Biotech Srl, which is planning to build a bioLNG plant in Campania. Work on the conversion of two plants that currently produce biogas from the treatment of the organic fraction of municipal solid waste (OFMSW) for the production of bioLNG is at an advanced stage. Recently the authorisation decree for the OFMSW biomethane plant in the Lazio region was also granted.
In September 2022, Edison and Saipem joined forces to carry out the “Puglia Green Hydrogen Valley” project in Apulia (2). They acquired 50% and 10%, respectively, of Alboran Hydrogen Brindisi Srl. This is an important step in the realisation of this project, one of the first initiatives for the large-scale production and transport of green hydrogen in Italy. The project includes the construction of three green hydrogen production plants (Brindisi, Taranto and Cerignola) with a total electrolysis capacity of 220MW, which will be powered by around 400MW of solar energy.
Edison owns 100% of Edison Stoccaggio, a company that focuses on regulated gas storage activities and that has three storage sites (depleted gas fields): Cellino (since 1984), Collalto (since 1994) and San Potito & Cotignola (since 2013). The volume being worked upon on all of the sites is 1billion cubic metres.
Belgium
The Benelux region features important interfaces with the Franco-German electricity marketplace and Great Britain. Moreover, projects for new links with Germany are being examined. Benelux constitutes an important node in the European gas market because of its numerous import and transit infrastructures, such as the Zeebrugge hub and the Dunkirk LNG terminal nearby.
The EDF group is present in Belgium through EDF Belgium and Luminus.
As part of a long-term nuclear energy cooperation agreement with Electrabel, EDF holds 50% in undivided co-ownership of the Tihange 1 nuclear power plant, through its wholly-owned Belgian subsidiary, EDF Belgium. The capacity attributed to EDF represents 481MW (or 2% of Belgian generation capacity). Tihange 1 output, which is attributed to EDF Belgium is sold to EDF (via a long-term contract renewed at the end of 2015 for 10 additional years) which, in turn, resells the electricity to Luminus at a market price. Tihange 1 is scheduled to continue to operate until 2025.
The extension of the lifespan of Tihange 1 requires significant investment, with EDF’s share amounting to around €397 million, spread over the period from 2011 to 2022. This amount includes the impact of the 2022 triennial review estimated at €73 million.
At the end of 2022, the EDF group held 68.63% of the Luminus company through its subsidiary EDF Belgium. Luminus is the second largest player in the Belgian energy market and holds a balanced upstream/downstream portfolio. The company, whose market share is close to 25%, possesses almost 10% of total Belgian generation capacity with 2,289MW installed at the end of 2022. The electricity generation of Luminus reached 6.9TWh in 2022. The company employs around 2,500 people.
As part of the Group’s CAP 2030 strategic plan, Luminus has the ambition of developing its wind farm fleet and accelerating the deployment of its energy services in order to provide its customers with innovative and sustainable solutions, whilst pursuing its objective of reducing costs and rationalising its thermo-electrical generation fleet.
Luminus owns 10.2% (419MW) of Belgium’s Tihange 2 and 3 nuclear power plants (commissioned in 1983 and 1985 respectively) and the Doel 3 and 4 plants (commissioned in 1982 and 1985 respectively), which have a lifespan of 40 years. The Doel 3 nuclear power plant was shut down permanently on 23 September 2022. In June 2022, Engie and the Belgian government signed a letter of intent setting out the terms governing a 10-year extension of the operation of the Doel 4 and Tihange 3 reactors.
In addition, Luminus has a generation allocation contract for 100MW relating to the two units of the Chooz B power plant.
Luminus also possesses a thermal fleet comprising several power plants (combined cycles and open cycles) for an installed capacity of 1,208MW. In April 2022, the Belgian federal government selected the project for a new CCGT plant in Seraing under the Capacity Remuneration Mechanism (CRM). this project involves the construction of a gas-steam turbine (GST) power plant with total capacity of approximately 870MW. This new generation unit will be located next to the existing plant in the Val business park in Seraing. The project also includes the conversion of the existing power plant to operate alongside the new unit. Work started in autumn 2022 and the new unit is scheduled to be commissioned in the second half of 2025.
(1) See Edison’s press release of 11 May 2022, “Edison launches “Edison Next” for the decarbonisation of businesses and territories in Italy and Spain”.
(2) See Edison’s press release of 8 September 2022, “Edison and Saipem join together in a special purpose vehicle to implement the Puglia Green Hydrogen Valley project”.
