The competitiveness of the energy sector is in danger due to the

increasing dependency on imported hydrocarbons from a limited

number of countries. This situation has recently been aggravated by a
significant increase in oil and natural gas prices. The need to reduce
pollutant emissions and combat climate change makes investment in
this sector even more necessary.
On this issue, new European policy on energy efficiency and the
development of renewable energy sources offers Italy and other
member states, the chance to create an energy mix which ensures
greater independence from producer states and above all improved
environmental sustainability.

In this context, technological research for the development of

innovative systems with reduced costs and lessened environmental
impact, play a vital role.

In 2019, Enel had the 85% of the quota in Italy, followed by Acea
Energia and Altri Esercenti with 5% each one.

Iberdrola in 2018 decided to take advantage of this Italian market with

24 million possible clients and installed in there, facing Enel. It
successfully reached more than 100.000 clients in one year. The other
big Spanish firm, Audax in 2019 also decided to expand in Italy with
good previsions.

Italy is consuming 93,7% of electricity produced in the country and the

rest imported. It has planned to increase about 26% renewal energies
compared to 2020 total production. In 2014 the national consumption
of renewable sources was about 38,2% which overs 16,2% of the total
energy consumption of the country.

The electricity is a high percentage of the total final consume of energy

in Italy.

Italy is the 14th bigger producer of hydroelectric energy which

represents 18% of the national production in 2012, but also tone of the
bigger producers of solar electricity that represents almost 9% of total
energy consumption.

In 2008, Italy attained the ranking of second world importer of

electricity (represents 10% of total energy consumption), after Brasil,
mostly coming from Switzerland and France which benefits from low
prices driven by excess power during off-peak periods.
More than 70% of Italy’s electricity was generated by thermal plants in
2012, the rest by hydropower and renewable sources.

The electricity sector in Italy became nationalized in 1962, with the

creation of ENEL, with the monopoly of production, transmission, and
distribution of electric energy in the country. Enel incorporate all the
last private firms (more than 1000) that were operating before this
date. Therefore, after 1970, the petroleum crisis, Enel changed its
strategy and started investing on nuclear energy and electricity
imported on France. Therefore, the nuclear energy was abandoned in
1987.

Enel became private in 1992 but entirely property of the minister of the
economy and started to liberate from the state control at the end of
1990 thanks to the European Union. Finally, in 1999 a new Italian
decree conduced to a total liberalization of the market.

The electric demand in the industrial sector fall by 21% between 2008
and 2013 due to the economic crisis.

Natural gas imports have increased 119% since 1990 to 2012.

Since 1990s, regulations have been based on two main pillars: limiting
the power of Enel and the introduction of a free market for the sale of
electricity to customers.

Retail market liberalization started in 1999 with the passing of the so-
called “Bersani Decree”

Today the Italian power market is dispersed. In 2012 electricity

generation still dominated by Enel (25,4%), followed by Eni (9,5%),
Edison (7,2%) E.On (4,4%)…

However, the power distribution market is very concentrated, 83% with

Enel despite the existence of more than 133 local operators.

The general tendency of electricity prices to rise for final consumers is

mainly driven by grid costs and increasing taxes to support renewables
development, as well as additional measures to promote energy
efficiency.

The national Energy Strategy (SEN) adopted in March 2013, defined 4

main objectives to improve the competitiveness and sustainability of
the Italian energy sector by 2020.
Reducing energy costs by aligning prices to European average prices,
meeting European targets of the 2020 European climate energy and
the NAP, improving supply security reducing foreign dependency and
boosting growth and employment by mobilizing investment of 1780
billion by 2020.

SEN anticipates that more than 29% of final energy produced will
come from renewable sources, in this context a significant solar
capacity would need to be installed.

In the short term, Italy will continue to rely on imports and will need to
expand its connections with renewable energy-exporting countries,
probably in the Balkans and North Africa to better diversify the sources
of its electricity supply. Projects to connect Italy’s grid with
neighborhoods countries are also in progress and could potentially
position Italy to act as an energy hub for the EU.

https://www.researchitaly.it/en/the-energy-sector/

https://www.eleconomista.es/energia/noticias/8289083/04/17/Iberdrola-entra-en-Italia-a-
competir-con-Enel-en-comercializacion-electrica.html

https://es.qwe.wiki/wiki/Electricity_sector_in_Italy