REPUBBLICA ITALIANA
PRESIDENZA DEL CONSIGLIO DEI MINISTRI
DEPARTMENT FOR EUROPEAN AFFAIRS
SECRETARIAT OF THE MINISTERIAL COMMITTEE FOR EUROPEAN AFFAIRS
Energy: issues and challenges for Europe and for Italy.
Position paper of the Italian Government
10 September 2007
1. The significance of the package
1. The adoption by the Spring European Council of the action plan “An energy policy
for Europe” has an enormous importance. It will help us combating climate change,
while at the same time improving our technology and competitiveness. It will have
tangible benefits for our citizens and enterprises. A common energy policy also
means that the European political agenda is advancing on strategic subjects, and
can be an effective demonstration that Europe delivers.
2. The ambitious targets that we agreed to set also have a strong external
significance, aiming at improving security of supply and rendering Europe a global
leader on these issues. This kind of engagement will give us a strategic advantage
in promoting our views on climate change. In this framework, the Bali conference at
the end of this year will have to see our political commitment at the same high level.
3. “An energy policy for Europe” can be a very important opportunity for us. If correctly
put into practice, the package can have the effect of stimulating innovation, thereby
creating a real technological leadership for the EU. The implementation phase of
the action plan is therefore crucial not to spoil this opportunity.
4. We highly appreciated the work of the German Presidency, which brought to an
agreement that seemed very hard to reach at the beginning, and facilitated a
positive result at the G8 Summit. We also appreciate the joint commitment of the
three Presidencies – German, Portuguese, Slovenian – that will surely be of much
help in implementing the action plan.
2. An integrated approach
5. All the policies and the related targets contained in the energy package, and in
particular those on renewable energies, will have now to be followed by concrete
legislative proposals from the Commission. All these legislative proposals – i.e. the
instruments - will have to be built on the founding principle of the package, which is
to face the three final goals – combating climate change, securing security of
supply and improving European competitiveness – in an integrated fashion. This
“integrated approach” guarantees that an efficient equilibrium is reached among the
goals.
6. An example is the strong relation between the emission reduction target and the
renewables target. The two policies are linked not only because adopting more
renewables will reduce emissions, but also because an efficient carbon market
could (and probably will) lead to higher CO2 prices, therefore rendering more
economically viable the adoption of renewables. On the other hand, the greater
diffusion of renewable technologies will help reducing their current cost, contributing
to an higher degree of substitution of fossil fuels.
7. Therefore we look forward to an high degree of integration of all proposals, that will
have to be preserved, via a strong cooperation of all the institutions involved, also
in the codecision phase.
8. It is highly crucial that all the proposals and the discussions take into account the
role of the energy market. An efficient, well-functioning energy market is crucial for
any kind of policy to succeed, be it for the role that the trade of energy can have in
achieving the European targets, be it for the role it can have in stimulating
innovation in these which are also technological challenges.
9. Therefore, we anticipate that the Commission tables ambitious proposals on the
internal market for energy as soon as possible. At the same time, the proposal on
renewables should include provisions for removing the barriers still existing, to
ensure an efficient flow of investments and reduce costs.
10. Another important example of integration is the relation between energy efficiency
and renewables. It is quite clear that, in order to define a realistic estimate of the
level of energy use that will prevail in 2020, we should take into account the savings
coming from efficiency at that point in time. Having set a 20% European target on
efficiency, we have to consider its effects if we want to create national binding
targets on renewables that are credible and effective. Not doing so could lead to
errors and quite certainly harm the process. By reducing consumption, efficiency
can give a very cost-effective contribution to achieving all the three final goals:
therefore it must be kept in adequate consideration when setting all the others
instruments.
11. As the Commission already stated, all the issues of the energy and climate change
package must be simultaneously addressed and an efficient solution that
simultaneously considers all the issues must be devised.
3. Renewables
12. We agree with the Commission’s views, recently expressed, that renewables are at
the very centre of the triangle Lisbon-Moscow-Kyoto. They contribute at the same
time to all the three goals we agreed, giving an incentive to technological
innovation, improving our energy independence from third countries, and reducing
emissions.
13. The importance of correctly defining our policy on renewables is therefore selfevident. Before coming to any decision on the sharing of the European target, we
need to have a better understanding of how the system will work in terms of:
governance; incentives and market design, including state aid regime; the role of
trade; and the role of all available financial instruments, including structural funds
and EIB funds. We should also carefully consider the effects of any decision on
competitiveness.
14. There has been uneven growth in renewables in the EU, and many countries are
still well below their potential, also on mature technologies such as hydro. The role
of the forthcoming proposals will be creating a coherent policy framework, useful for
encouraging countries which have unused potential to exploit it.
15. While electricity is certainly an extremely relevant part of the problem, it does not
encompass it all. We wish to stress the importance of this directive for the heating
and cooling sector – and of course for biofuels. For heating in particular there is an
enormous potential to be developed in all countries, with rather mature
2
technologies, that have a relatively short payback time, which can be efficiently
adopted, while cooling still largely resorts on electricity.
a. Governance of the process
16. Italy supported the idea of defining binding targets for renewables, because this can
add credibility to the process and give to the Member States the needed
momentum to put forward their initiatives.
17. However, this raises the necessity of defining a clear and precise governance
mechanism. The efficiency of the binding targets is strictly linked to the governance
instruments, such as national plans, progress reports, enforcement of the target,
and to the ability of such targets to facilitate the National governments to adopt
credible and realistic policies to achieve them.
18. This is a long-term process, with long-term commitments and long-term
investments. To help the growth and the diffusion of those technologies that
underpin renewable energies, it is clearly necessary to define national and
European roadmaps. They should indicate how to reach the targets in the different
sectors (electricity, heating/cooling, biofuels), including a coherent framework for
incentives.
19. All the process should be subject to regular revisions in order to introduce, if
needed, adjustments. For example, variations in natural conditions, such an higher
frequency (or intensity) of droughts, could negatively affect the productivity of hydro
plants, and therefore reduce the energy production potential. Simple mechanisms
to trigger the revision of targets, such as thresholds, should be provided in order to
face such kind of situations. On the other hand, significant, unforeseen
breakthroughs in the development of the necessary technology could bring to a
revision of the targets in a positive sense.
20. Agreed milestones would facilitate investment planning both for the public and the
private sector, while at the same time providing a useful governance mechanism, to
check progress and contribute to the adjustment process if needed.
21. Member states will be free to define their own energy policy mix. In this framework,
the legislative proposal of the Commission should define clear and homogeneous
rules, including on incentives.
22. A credible set of instruments for the enforcement of the targets should help MS to
achieve them. A possibility could be the introduction of automatic mechanisms for
favouring the diffusion of renewables, such as the elimination of the remaining
administrative burdens or market barriers.
23. To be effective, the legislative process should take the shortest possible time. This
is necessary for two reasons: the need to start early to achieve the desired
European target in time; and the need for investors to have a clear framework of
the National engagements for defining long-term commitments.
b. Incentives and market design
24. The adoption by the EU of ambitious targets on energy and climate change implies
the need to adopt the most efficient instruments to reach such targets. This means
inter alia: a more intensive and possibly harmonised use of market-based
instruments, which can contribute to give to all agents the correct price signals and
3
optimize the inevitable tradeoffs; technology-specific incentives; a stable and simple
framework to encourage investments.
25. While the target for renewables is European, the national energy markets are still
not sufficiently integrated. At the same time, the different MS have different
situations in terms of landscape, climate, endowment of natural resources, and
technology adoption rates.
26. Such heterogeneity reinforces the case for tradable market-based instruments.
Therefore, while Italy understands that scope for locally designed incentives exists,
it supports the idea of having an harmonised set of incentives across Europe.
27. Italy supports market-oriented incentives, for their advantages in terms of
transparency, cost-based competition among sources, cross-border trade.
Technology-specific support can be provided in this scheme by a series of
measures such as technology banding.
28. Italy believes that – if a full harmonisation of incentives cannot be achieved – an
harmonisation of principles has to be found. This relates especially to stability,
reduction of barriers, technology, duration, and the role of state aid.
29. Stability of the framework of incentives is necessary to give to the industry a clear
and long-time perspective, which in turn stimulates investments and promotes
technological innovation.
30. Administrative barriers need to be removed, by streamlining procedures, simplifying
support schemes, reducing requirements. While taking into account the different
levels of territorial governance, one-stop shops should be introduced.
31. We understand the case for technology – specific incentives, especially for
technologies that are still at an early stage of adoption. The different possible
formulas (green certificates, feed-in tariffs, other instruments), however, should
work in the same way all over Europe, to avoid distortions and favour the spreading
of technologies across the EU.
32. Incentives should also be designed considering the differences among sectors:
electricity is different from H/C, which in turn is different from biofuels. Moreover,
integration between different sources and vectors should be promoted: the
combination of renewable sources and hydrogen is a good example of that.
33. Duration of incentives should be limited in time. When the specific renewable
technology source becomes competitive with the traditional sources, it should be
able to justify its adoption in economic terms. Of course, this does not take into
account the idea of actively promoting renewables, making them more
economically viable than other sources via incentives (or penalties). In any case,
there is a clear need for monitoring of markets, technological learning and cost
reductions. Incentives must be designed in a way that fosters innovation,
technology development and progressive cost reductions.
34. State aid. The ongoing revision of the Community guidelines for state aid for
environmental protection needs to be an integral part of the renewables policy
design, effectively contributing to support the adoption of these technologies, and
overcoming the difficulties and the burdens inherent to the current guidelines. Italy
supports the idea of admitting aid intensities of 100% eligible investment costs in
favour of all renewable sources, including large (>10MW) hydro plants that are
excluded by the current draft. A reduction in aid intensities, such as the one
foreseen by the current draft, would not go in the direction of an active promotion of
4
renewables. On the other hand, Italy does not support the idea of excluding state
aid for sources for which market-based incentives already exist.
35. The adoption of an “harmonisation of principles” would favour the allocation of the
production of renewable energies on the basis of comparative advantages of the
MS, reduce the costs of reaching the European target, and facilitate consensusbuilding in the sharing of the target among the MS. The functioning of the internal
market for energy, and for renewables in particular, would be favoured by this
approach.
c. “Burden” vs “Technological opportunity” sharing
36. The sharing of the European target must be based on a careful and detailed
assessment of national potentials and on a clear definition of the role of renewable
energies import. Alternative and more simplistic approaches would give inefficient
results and have to be avoided. As we already stated, the different MS have
different situations in terms of landscape, climate, endowment of natural resources,
and technology adoption rates, and all this needs to be taken into account when
defining the national targets for renewables.
37. The commitment of every Member State must therefore be proportional to its
renewable energies production potentials. If we do not start from this concept, we
risk creating non credible and non reachable targets, and ultimately fail in our goal
of adopting renewable energies on a large scale. The engagement on a specific
target needs to be based on credible consumption scenarios, that take into account
energy efficiency commitments and scenarios presented by MS.
38. As far as the models used by the Commission to create scenarios are concerned,
Italy remarks the importance of a dialogue with the MS. The positive experience of
the revision of the outcomes of the PRIMES model determined by this dialogue
needs to be replicated with the GREEN-X model. A greater transparency of this
process, that involves MS, the Commission, and its external consultants, will greatly
help to determine credible targets and define credible scenarios and effective
policies.
39. Furthermore, the choice among final energy consumption and primary energy
consumption for the definition of the target is not without consequences:
transformation losses, for example, would not be included when using final energy.
40. This is a common and ambitious effort for all Europe, where everyone must
contribute according to its own possibilities. The fairness principle that the
European Council included in the action plan will help therefore to avoid situations –
such as the adoption of a flat rate for all the MS - that would ignore the national
differences, also hampering the ability of the MS to finance supporting schemes.
41. This effort needs however to be seen as an opportunity rather than a burden:
stimulating the adoption of renewables will positively affect GHG emission reduction
targets, security of supply, and competitiveness.
42. Competitiveness in particular will be positively affected if an effective policy design
helps the creation of an European technological advantage in this field, while in turn
the wider adoption of these technologies leads to a significant cost reduction of
renewable sources.
43. National target definition requires a careful consideration of the current and future
availability of technology. This is extremely relevant to avoid adopting engagements
based on non realistic technological assumptions, that could bring to excessive
5
costs for achieving them. On the other hand, fast development and industrialization
of the most promising, innovative technologies should be a primary objective.
44. To favour widespread adoption, availability of financial instruments should be
ensured not only at the national, but also at the European level. In this sense we
introduced energy as one of the priorities of the National Strategic Framework for
structural funds. At the same time, we think that the EIB could have a key role in
financing the important investments that will be needed.
d. The role of trade
45. We recall that the 2007 Spring European Council invites the Commission to
“analyse the potential of cross-border and EU-wide synergies and of
interconnections for reaching the overall renewable energy target, thereby also
addressing the situation of countries and regions largely isolated from the EU
energy market.”
46. A clear definition of the role of renewable energies trade in the establishment of
national targets is thus especially necessary to take into account the different
national potentials. The import of energy from renewable sources will allow MS to
consume an higher share of them, also helping to deploy the technologies where it
is more efficient, reducing the need for incentives.
47. At the same time, trade has to be seen as a technological opportunity for creating
renewable plants in cooperation both with other EU countries, and with third
countries.
48. Trading with third countries will help us to reach the target and ensure a wider-thanEU adoption of renewable technologies, with important effects in terms of reduction
of emissions and of sustainable growth of less developed countries.
49. Hence, Italy considers a necessary feature of the system the possibility of including
import in the calculation of the national target.
50. In this context, instruments for avoiding double-accounting at the European level
need to be defined, with exports automatically subtracted from the national target.
51. This implies the issue of creating a sound framework for an harmonised, robust and
reliable certification of renewable energies, based for example on an evolution of
the certificates of origin included in the existing directive. The need for a clear
certification mechanisms is also evident if we consider the number of legal disputes
currently running both at the European and national level.
52. Such framework will also introduce the possibility of virtual trading of renewables,
based on trade of certificates rather than on physical energy trade. This would
guarantee an higher exploitment of the potential also in the most remote regions.
53. A coherent strategy for renewables needs to include the promotion of trade of
biomass and biofuels. The cost of raw materials represents from 50 to 80% of total
production costs for biofuels, and it differs considerably from region to region,
reinforcing the case for international trade.
54. A revision of the common trade policy is therefore needed. At present biomass
import duties are much higher than those applied to fossil fuels. An high level of
coherence between trade and energy policies must be insured.
55. At the same time, trade of biomass between EU countries should be encouraged,
to consider the opportunities arising from the different situations.
6
56. It is clear, however, that the sustainability of the biomass and biofuel production will
have to be considered when accounting for the achievement of the target, both for
local production and for intra-EU and extra-EU trade.
4. Issues for Italy.
57. Italy made a first, preliminary assessment (tables 1, 2, A1, A2) of its maximum
theoretical potential level of renewable energies production1. This estimate
considers the starting point for each renewable source, the role of climate change
in renewable sources availability, and the physical constrains related to landscape,
climate, endowment of natural resources, and a number of source-specific
additional assumptions, which are summarized in the following paragraphs and
detailed in the technical document attached. A level of incentives for the electricity
sector in line with the current system and with the modifications currently under
discussion in the Parliament (AS691) is assumed.
58. The practicability of such theoretical potential, and therefore of a much greater
diffusion of renewable energy technologies in Italy, is conditional to a number of
issues, political, institutional, economic, and technological.
59. The first, and perhaps most important, issue, is that all new plants are subject to the
necessary political and administrative authorisations, that are often coupled with
problems of acceptance by local communities. Italy has already experienced
frequent “NIMBY” problems that produced delays and in some cases cancellations
of infrastructural projects. The streamlining of the decisional process, and an
improvement of its efficiency, will be essential to improve the diffusion of
renewables.
60. This issue is linked to the different levels of governance of energy policy in Italy,
given the very important role assigned to the Regions in this sector. In order to
achieve an ambitious national target, a greater level of coordination will be thus
necessary, among the Regions and between them and the State. The Regions
should undertake their own targets, and define clear and efficient roadmaps to
2020.
61. An evaluation of the socio-economic sustainability of the policies, including
incentives, will also be necessary. This point is especially referred to the effects of
the promotion of renewables on energy prices for consumers and on costs for
businesses. Therefore, the possible negative consequences in terms of
competitiveness and inflation will have to be taken into consideration.
62. The greater diffusion of renewable energies will imply the need for strong
investments in the transmission grid, to accommodate for small scale distributed
power generation resources that need to be interconnected like an internet network
and in the form of two-way interacting infrastructures. In this sense, the guidelines
provided by the SMART-GRIDS EU Technological Platform are a very useful
framework.
63. Since these data represent maximum potentials, they are expressed in terms of
primary energy replaced. We are aware that the Commission intends to express
national targets in terms of final energy consumption: this would penalize Italy
because of the under representation of hydroelectric.
1
Further technical details are available in the attached document: Fonti energetiche rinnovabili:
prime stime del potenziale accessibile per la produzione di energia in Italia al 2020. Ministero
dello Sviluppo Economico – Direzione Generale per l’energia e le risorse minerarie, 08/2007.
7
64. For all these reasons, we wish to stress again that the following estimates have to
be considered as the maximum theoretical potential, achievable without considering
all the above mentioned issues.
Table 1 - Summary of the national potentials for the production of renewable energy
Primary energy replaced (MTOE)
2005
2020
Electricity
Heating & Cooling
Biofuels
4,29
2,12
0,30
8,96
11,40
0,61
Total (MTOE)
6,71
20,97
Table 2 - Assessment of the national potentials for the production of renewable energy
2005
2020
Power
Energy
Power
Energy
ELECTRICITY
(MW)
(TWh)
(MW)
(TWh)
Hydro
Wind
Solar
Geothermal
Biomass, Landfill gas and Biological
purification
17.325
1.718
34
711
36,00
2,35
0,04
5,32
20.200
12.000
9.500
1.300
43,15
22,60
13,20
9,73
1.201
6,16
2.415
14,50
0
0,00
800
1,00
20.989
49,87
46.215
104,18
Wave and tidal
Total
Primary energy replaced (MTOE)*
*Using the Eurostat conversion factor
4,29
8,96
2005
HEATING/COOLING, BIOFUELS
Power
(TJ)
2020
Energy
(MTOE)
Power
(TJ)
Energy
(MTOE)
Geothermal
Solar
Biomass
8.916
1.300
78.820
0,21
0,03
1,88
40.193
47.000
389.933
0,96
1,12
9,32
Total Heating/cooling
89.036
2,12
477.126
11,40
Biofuels
12.600
0,30
25.600
0,61
101.636
2,42
502.726
12,01
TOTAL H/C+Biofuels (TJ/MTEP)
a. Electricity
65. Hydro: historical data indicate a decrease of the potential of hydroelectric plants,
due to restrictions of the minimum vital outflow, and to a reduction of rainfall due to
climatic factors.
66. Given these trends, and considering the effects of new investments, especially in
mini-hydro, we expect a total production at 2020 of 43.15TWh, compared with
36TWh in 2005.
8
67. Wind: the main issues at stake are the local acceptance of the potential burdens
linked to the environmental impact resulting from the exploitation of progressively
more valuable areas; and the natural saturation of the locations that have more
specific capability. For these reasons, the development of offshore plants is
envisaged.
68. Given these hypotheses, we expect a total production at 2020 of 22.60TWh,
compared with 2.35TWh in 2005.
69. Building integrated PV plants: expected potential energy of 7500MW by 2020,
supposing the current level of incentives, an installation growth rate that follows the
global energy trend, and considering the growth expectations assumed by EPIA.
70. Power PV plants: considering natural constrains and land availability, and assuming
the current level of incentives, we estimate the possible allocation of 100km2 of
land, equivalent to 10 km2 of panels for a potential of 1000MW, achievable for
example with 500 2MW plants.
71. Solar thermodynamic: unlike PV, the solar thermodynamic system uses only the
direct solar radiation and operates only at a radiation level higher than 300400W/m2. For this reason, installation of plants is possible only in some areas of
the Mezzogiorno. Considering that with the current technologies it is necessary an
area of 1 km2 to make a plant of 50 MWe, it can be supposed, in terms of power
capacity, a limit of about 1000 MW, or about 20 km2.
72. The total potential electricity produced from solar source would rise to 9500MW or
13.20TWh, compared with 34MW (0.04TWh)of 2005.
73. Geothermal: we assume a positive outcome of the research identifying alternative
ways of use of the heat emitted from within the Earth, not only through
hydrothermal resources but also trough geo-pressurized resources, that means hot
aquifer storage between 90 and 200 °C, submitted to high pressures and placed at
depths of 3 to 7 km. In addition, we assume a positive outcome of the advanced
testing for the use of hot dry rocks, located at different depths and that can achieve
a temperature of more than 150 °C.
74. If these results are confirmed, total potential electricity from geothermal would rise
to 1300MW (9.73TWh), starting from 711MW of 2005.
75. Biomass. It is estimated that the potential energy coming from the exploitation of
industrial waste can be 5 TWh/year, with an expected efficiency of 25%. For
municipal waste, we assume that the biodegradable part is 40% of total, with a
potential of 4TWh. For landfills, the expected 3.2TWh value is given by the annual
potential of 1.7TWh coming from the exploitation of gas anaerobic fermentation,
and 1.5TWh from landfill gas, subject to an improvement in gas capture
technologies and to a reduction of the waste treatment system. For dedicated
energy crops, it is necessary to assume high levels of incentives.
76. Total potential at 2020 would be 14.50TWh, compared with 6.16TWh of 2005.
77. Wave. We assume the creation of innovative energy plants that are able to use the
wave energy typical of the Italian coasts, very different from the oceanic water in
which normally these plants are installed. 1500 operating hours per year are
expected, equivalent to 1TWh.
9
78. Additional potential in 2020 for the electricity sector can be thus estimated at
50TWh, with a total maximum theoretical potential for the sector of 104,18TWh,
equivalent to 8.96MTOE2.
b. Heating/Cooling, Biofuels.
79. Geothermal. We assume the implementation of new technologies (geoexchange).
The estimated potential is approximately 960000 supplied units a year, where a
supplied unit covers a volume of about 300 m3, equivalent to a residential building
with a heat demand of 40193TJ, or 1 MTOE/year.
80. Solar heating. We assume a scenario, suggested by Assolterm (the Italian
association that promotes solar thermal), named "Austria as usual". We assume
therefore a per capita penetration of the technology equivalent to the Austrian one
today. We estimate a market of 3,8 millions sqm installed per year and 17.4 millions
of mq installed totally by 2020, equivalent to 47000TJ, or 1.12MTOE.
81. Biomass. We assume 5% use of all non-treated waste potentially available for the
civil heating with an average efficiency of 50%; and that 50% of the new power
capacity is co-generative with an average yield of 70%. We estimate therefore a
potential of 389933TJ, or 9.32MTOE.
82. Biofuel. With the present growth rate of automotive gas oil consumption, we
assume a consumption of 40 millions of tons by 2020. In order to produce the 5,5
millions of tons necessary to cover the 10% of energy coming from biofuels
(assuming 2nd generation biofuels are introduced), it would be necessary to cover
an agricultural area of 5 millions of hectares, equal to 16,7% of the area of the
country and about 60% of the cropped arable land. Resorting to import is therefore
unavoidable if we want to reach such ambitious target.
83. Italy could produce at most 800000 - 1000000 tons a year, using an agricultural
area of approximately 600000 hectares, instead of the current 260000. This is
equivalent to 25600TJ, or 0.61MTOE.
84. The remaining tons necessary to reach a level of 10% of fuel consumption of
46MLton would thus need to be imported. In considering this target, we have to
take into account the possible negative drawbacks in the food sector, that would
derive from a reduced use of areas for agricultural purposes. To calculate the level
of consumption it is also necessary to assess the possible evolution of the
automotive market, with more efficient, less-consuming engines, and the policies
aimed at offering a competitive public transport. These two factors could reduce the
demand for fuel, thereby reducing the demand for imported biofuels.
85. For the H/C and biofuel sectors the total maximum theoretical national potential is
estimated at 12.01MTOE.
86. The total maximum theoretical national potential for renewables at 2020 is therefore
estimated at 20.97MTOE.
6. Conclusions
87. Italy attaches a great importance to the efficient implementation of the action plan
“an energy policy for Europe”. By simultaneously addressing the issues of climate
2
To convert to MTOE we used the Eurostat conversion factor (1TWh=0.08598MTOE).
10
change, security of supply, and competitiveness, we have the opportunity to
stimulate innovation, thereby creating a real technological leadership for the EU.
88. A real integration of all aspects, and a true equilibrium among them, is crucial for
the success of the policy.
89. For renewables, we consider essential a sharing of the target based on the careful
and detailed assessment of national potentials and on a clear definition of the role
of renewable energies import. Alternative and more simplistic approaches would
give inefficient results and have to be avoided. The MS have different situations in
terms of landscape, climate, endowment of natural resources, and technology
adoption rates, consumption and efficiency scenarios. All these factors need to be
taken into account when defining the national targets for renewables. The risk we
run adopting alternative approaches would be the failure of the goal of adopting
renewables on a large scale.
90. This effort needs however to be seen as an opportunity rather than a burden:
competitiveness will be positively affected if an effective policy design helps the
creation of a European technological advantage in this field, while in turn the wider
adoption of these technologies leads to a significant cost reduction of renewable
sources. On the other hand, target definition requires a careful consideration of the
current and future availability of technology, in order to avoid adopting
engagements based on non realistic technological assumptions, that could bring to
excessive costs for achieving them.
91. The import of energy from renewable sources will allow MS to consume an higher
share of them, also helping to deploy the technologies where it is more efficient,
reducing the need for incentives. Therefore, Italy considers a key feature of the
system the possibility of including import in the calculation of the national target.
92. An effective governance mechanism, with national and European roadmaps, will
help to achieve these targets, because it gives clear perspectives to the industry.
As far as incentives and market design are concerned, Italy supports an
harmonisation based on market-based instruments, or at least an harmonisation of
principles that are at the base of the different forms of incentives. We understand
the case for technology – specific incentives, especially for technologies that are
still at an early stage of adoption. The different possible formulas, however, should
work in the same way across Europe, to avoid distortions and favour the spreading
of technologies.
93. Italy made a preliminary assessment of the maximum national potential for the
production of renewable energies, taking into account all the issues related to
landscape, climate, endowment of natural resources and technology adoption
rates. All these aspects are described in this document and in greater detail in the
attachments. These calculations give a maximum theoretical potential in 2020 of
20.97MTOE.
11
Annex 1 – Detailed tables.
Table A1 - Electricity
State of
implementation
31 december 2005
Power
Energy
(MW)
(TWh)
Hydro power plants > 10MW
Hydro power plants < 10MW
TOTAL HYDRO SOURCE
Wind plants on-shore
Wind plants off-shore
TOTAL WIND SOURCE
Energy
(TWh)
28,50
7,50
36,00
16.000
4.200
20.200
30,72
12,43
43,15
1.718
0
1.718
2,35
0,00
2,35
10.000
2.000
12.000
18,40
4,20
22,60
27
7
0
34
0,03
0,01
0,00
0,04
7.500
1.000
1.000
9.500
9,00
1,20
3,00
13,20
711
0
711
5,32
0,00
5,32
1.000
300
1.300
7,48
2,24
9,73
Traditional geothermic
New generation geothermic
TOTAL GEOTHERMIC SOURCE
389
2,34
769
5,00
527
2,62
800
4,00
285
1,20
492
3,20
0
0,00
354
2,30
1.201
6,16
2.415
14,50
0
0,00
0,00
0,00
800
800
1,00
1,00
Wave and tidal energy
TOTAL WAVE AND TIDAL ENERGY
TOTAL
TOTAL PRIMARY ENERGY REPLACED
Power
(MW)
14.920
2.405
17.325
Building integrated PV plants
Power PV plants
Solar thermodynamic
TOTAL SOLAR SOURCE
Plants using biomass coming from crops
and other agro-industry waste
Plants using biodegradable part RSU
Plants using landfill gas, sewage treatment
plant gas and biogas
Plants using dedicated energy crops
TOTAL BIOMASS, LANDFILL GAS AND
BIOLOGICAL PURIFICATION
Total potential energy
available by 2020
20.989
49,87
4,29 MTOE
46.215
104,18
8,96 MTOE
Table A2 - Heating, Cooling, Biofuels
State of implementation
31 december 2005
Power
Energy
(TJ)
(MTOE)
Total potential energy
available by 2020
Power
Energy
(TJ)
(MTOE)
Geothermal
TOTAL GEOTHERMAL SOURCE
8.916
8.916
0,21
0,21
40.193
40.193
0,96
0,96
Solar heating
TOTAL SOLAR SOURCE
1.300
1.300
0,03
0,03
47.000
47.000
1,12
1,12
Biomass for civil sector
Cogeneration (+district heating)
TOTAL BIOMASS
57.820
21.000
78.820
1,38
0,50
1,88
233.333
156.600
389.933
5,57
3,74
9,32
Biofuels
Biofuels for import
TOTAL BIOFUELS
12.600
0,30
12.600
0,30
25.600
150.400
176.000
0,61
3,59
4,20
101.636
2,4
653.127
15,6
TOTAL
12