Introduction

Italy has rather limited domestic energy sources and is, therefore, highly dependent upon energy imports to meet its energy consumption needs. This has resulted in an increased market share for imported electricity – which mainly comes from France, Switzerland and Slovenia. The country phased-out its nuclear power plants after being forced to abandon its nuclear energy programme following a referendum in 1987. Italy is, therefore, the world's largest electricity importer. Electricity prices in Italy are 45% higher than the European average. In October 2005, the Italian government said that nuclear energy could no longer be disregarded as part of Italy’s future energy policy. In May 2005, ENEL and EDF signed a memorandum of understanding that will give the Italian utility a 12.5% stake (i.e. 200 MW) in EDF's planned 1,600 MW European Pressurised Water Reactor (EPR), which is being built at Flamanville, in France. In May 2008, the right wing party won the general elections. The Industry Minister, Claudio Scajola, declared on 22 May that the new government plans to restart the country's nuclear power program and to start building the first NPP by 2013. Nicolas Sarkozy, the French President and Silvio Berlusconi, the Italian Prime Minsiter signed on 24 February 2009 an agreement which paves the way for the building of at least four nuclear power plants (NPP) in Italy, using French technology and the participation of ENEL, Italian Electricity Utility, in the construction of NPPs in France. The Italian Senate adopted on 10 July 2009 a bill bringing to an end a ban on the use of nuclear energy that had been in place since 1987. The announcement paves the way for the building of nuclear power plants (NPPs) in Italy. On 3 August 2009 Enel and Electricite de France (EDF) announced the creation of a joint venture named ‘Sviluppo Nucleare Italia’ to develop feasibility studies for the construction of at least four advanced third generation EPR units. ENEL's subsidiary, Slovenske Elektrarne, operates nuclear reactors in Slovakia and will complete two new nuclear power units there. On 9 February 2010, the Italian government signed a decree defining criteria and procedures for the construction of nuclear power plants (NPP) in the country by 2020. Construction works are scheduled to start in 2013. Air pollution remains a serious problem in Italy.  Under the EU burden sharing agreement, Italy must reduce its carbon emissions by 6.5 % below the 1990 level between 2008 and 2012. Italy was 16% above this target in 2002. The Kyoto target will be difficult to meet without the help of nuclear power.

Country Profile

Executive Summary

Italy has rather limited domestic energy sources and is, therefore, highly dependent upon energy imports to meet its energy consumption needs. This has resulted in an increased market share for imported electricity – which mainly comes from France, Switzerland and Slovenia. The country phased-out its nuclear power plants after being forced to abandon its nuclear energy programme following a referendum in 1987. Italy is, therefore, the world's largest electricity importer. Electricity prices in Italy are 45% higher than the European average. In October 2005, the Italian government said that nuclear energy could no longer be disregarded as part of Italy’s future energy policy. In May 2005, ENEL and EDF signed a memorandum of understanding that will give the Italian utility a 12.5% stake (i.e. 200 MW) in EDF's planned 1,600 MW European Pressurised Water Reactor (EPR), which is being built at Flamanville, in France. In May 2008, the right wing party won the general elections. The Industry Minister, Claudio Scajola, declared on 22 May that the new government plans to restart the country's nuclear power program and to start building the first NPP by 2013. Nicolas Sarkozy, the French President and Silvio Berlusconi, the Italian Prime Minsiter signed on 24 February 2009 an agreement which paves the way for the building of at least four nuclear power plants (NPP) in Italy, using French technology and the participation of ENEL, Italian Electricity Utility, in the construction of NPPs in France. The Italian Senate adopted on 10 July 2009 a bill bringing to an end a ban on the use of nuclear energy that had been in place since 1987. The announcement paves the way for the building of nuclear power plants (NPPs) in Italy. On 3 August 2009 Enel and Electricite de France (EDF) announced the creation of a joint venture named ‘Sviluppo Nucleare Italia’ to develop feasibility studies for the construction of at least four advanced third generation EPR units. ENEL's subsidiary, Slovenske Elektrarne, operates nuclear reactors in Slovakia and will complete two new nuclear power units there. On 9 February 2010, the Italian government signed a decree defining criteria and procedures for the construction of nuclear power plants (NPP) in the country by 2020. Construction works are scheduled to start in 2013. Air pollution remains a serious problem in Italy.  Under the EU burden sharing agreement, Italy must reduce its carbon emissions by 6.5 % below the 1990 level between 2008 and 2012. Italy was 16% above this target in 2002. The Kyoto target will be difficult to meet without the help of nuclear power.

Security of supply

Italy has rather limited domestic energy sources and is, therefore, highly dependent upon energy imports to meet its energy consumption needs. Oil consumption has remained relatively static since 1970, but oil’s share in Italy’s primary energy mix has decreased significantly and been steadily replaced by natural gas. The country’s electricity supply is one of the major problems affecting Italy. In the summer of 2003, increased electricity demand during a heat wave overwhelmed Italy’s electricity generation facilities, resulting in rolling blackouts. In September 2003, Italy suffered a nationwide blackout after a storm damaged a transmission line in Switzerland that carries electricity from France to Italy. Over the past decade, Italy’s installed electricity generation has not been able to keep up with demand, resulting in an increased share for electricity imports, which mainly come from France, Switzerland and Slovenia.
Italy’s electricity grid is part of the Union for the Coordination of Transmission of Electricity (UCTE).

Italy gets the majority of its electricity supply from conventional thermal sources, mainly oil-fired production. The high costs of oil compared to other sources of thermal generation have caused Italian electricity consumers to pay some of the highest rates in Europe - currently 40% above the EU average.

Nuclear Policy

Italy had one of the earliest nuclear energy programmes in Europe, with a total installed net capacity of 1 423 MWe located at four sites: Garigliano, Latina, Caorso and Trino. The country phased-out its nuclear power plants after being forced to abandon its nuclear energy programme following a referendum in 1987, in which voters rejected a group of measures to promote nuclear technology. Although ENEL owned 33% of Nersa, the joint venture that operated the Superphenix 1,200 MW fast neutron reactor at Creys-Malville, this was cancelled after final closure of the reactor, in 1998. Today, Italy has no nuclear reactor operating on its soil. Instead, it relies upon imports of nuclear electricity from its neighbours. Italy, which has few domestic energy resources, is the world's largest electricity importer. Electricity prices in Italy, now heavily dependent upon oil and gas and on imports, are 45% higher than the European average. In October 2005, the Italian government said that nuclear energy could no longer be disregarded as part of Italy’s future energy policy. The Italian Environment Minister declared that Italy could abandon its phase-out policy if there was political consensus for such a move. In May 2005, ENEL and EDF signed a memorandum of understanding that will give the Italian utility access to 12.5% stake (i.e. 200 MW) in EDF's planned 1,600 MW EPR unit, which is being built at Flamanville-3, in France. In May 2008, the right wing party won the general elections. The Industry Minister, Claudio Scajola, declared on 22 May that the new government plans to restart the country's nuclear power program and to start building the first NPP by 2013. Nicolas Sarkozy, the French President and Silvio Berlusconi, the Italian

Prime Minsiter signed on 24 February 2009 an agreement which paves the way for the building of nuclear power plants (NPP) in Italy, using French technology and the participation of ENEL, Italian Electricity Utility, in the construction of NPPs in France. In the framework of the Italian-French agreement, Fulvio Conti, the CEO of Enel and Pierre Gadonneix, the Chairman of EDF, signed two Memoranda of Understanding to study the feasibility of constructing at least four EPR units to be built in Italy and to extend Enel’s participation in the French nuclear programme. The first EPR reactor in Italy should come into operation by 2018. The agreement also includes that ENEL will purchase a 12.5% share in France’s second EPR to be constructed at Penly. ENEL's subsidiary, Slovenske Elektrarne, operates nuclear reactors in Slovakia and will complete two new units there. On 3 August 2009 Enel and Electricite de France (EDF) announced the creation of a joint venture named ‘Sviluppo Nucleare Italia’ to develop feasibility studies for the construction of at least four advanced third generation EPR units.

The Italian Senate adopted on 10 July 2009 a bill bringing to an end the ban on the use of nuclear energy. Under the new law, the government will have six months to select potential sites for new nuclear power plants. The new law covers a large range of areas including nuclear safety, licensing, research, potential sites’ selection and decommissioning. On 9 February 2010, the Italian government signed a decree defining criteria and procedures for the construction of nuclear power plants (NPP) in the country by 2020. Construction works are scheduled to start in 2013. The decree draws a list of the characteristics of suitable sites for NPPs and waste repositories. It also defines procedures for construction and operation of plants and a system of financial compensation for areas that agree to host nuclear stations. However it will be up to companies to identify the location of new plants. Local inhabitants and authorities will be involved in the decision-making process.

Climate Change

Italy has signed the Kyoto Protocol and is committed to reducing its greenhouse gas emissions during the 2008-2012 commitment period. Under the EU burden sharing agreement, Italy must reduce its carbon emissions by 6.5 % below the 1990 level between 2008 and 2012. Italy was 16% above this target in 2002. Air pollution remains a serious problem. Italy is heavily dependent on imports to meet its energy needs, energy security of supply and diversification of energy sources are top priorities for Italy’s energy policy-makers.

Italy is, however, well endowed with renewable energy sources, such as solar, biomass and geothermal, all of which could be captured and used to produce energy. The government has set itself the goal of doubling the country’s production of energy from renewables by 2012. The Kyoto Protocol target will, however, be hard to meet without the help of nuclear energy.