Energy: In the first semester price of kilowatt-hour for Italian companies dropped by 6%, Italy/UE gap shrunk

In the first six months of 2016 the price of the kilowatt-hour for Italian companies with medium-low power consumption - ranging from 20 to 500 MWh/year - decreased by 6% to 17.7 euro cents compared to 18.9 in the same period of 2015. Consequently, the gap between the Italian price and the average European price decreased in absolute terms from 6.3 euro cents last year (+50%) to 5.5 euro cents  (+45%) as shown by the ENEA Quarterly Analysis of the Italian Energy System, showing an improvement of the ISPRED (Index of energy Security, PRice of Energy and Decarbonisation).

In the first six months of 2016 the price for kilowatt-hour for italian companies with medium-low power consumption, between 20 and 500 MWh/year fell by 6% to 17.7 euro cents (1) compared to 18.9 euro cents of the same period in 2015.  Consequently the gap between the Italian and the average European price decreased in absolute terms from 6.3% euro cents last year (50%) to 5.5 euro cents (45%), according to the Quarterly Analysis of the Energy Systems by ENEA (avalaible at www.enea.it)) showing a drop in total primary energy consumption (-1%) and CO2 emissions (-1.4%) and the price of natural gas at its lowest in the last five years (inferior to 25 euro/MWh), particularly for energy-consuming companies with annual consumption exceeding 25 million m³.

The Quarterly Analysis also shows an improvement of the Index ISPRED on energy security, prices and decarbonisation developed by ENEA to measure together decarbonisation targets at 2020 an 2030, energy prices and national energy security. “By combining the three dimensions of the so called energy trilemmma outlined by the ISPRED, by half 2016 Italy presented an overall fulfillment degree of 64%, on the rise compared to the 61% reached last year”, Francesco Gracceva of the ENEA Studies and Strategies Unit, Head of the research group which conducted the analysis,  explained.

In the first six months of 2016 primary energy consumption fell slightly (-1) consequent to  a lower gas heating consumption due to mild weather.  Instead, natural gas consumption both for electricity generation and industrial production increased by 10% and 2.5 % respectively.  Non-programmable renewable sources generation in the electricity sector reached an average value equal to 14% of the demand, rising to the record levels of the first semester of 2015.

CO₂ emissions fell again in the semester (-1.4%), particularly those from electricity generation (-6%), due to a decline in the use of solid fuels (-20%). Emissions also fell in the civil sector (-2.6%) while growing in the transport sector (+2.3%).

Import of crude oil also dropped in the first semester of 2016; in particular imports from Libia and Saudi Arabia, while those from the rest of Africa and the Middle East increased. Following the 2015 recovery, the refining indicators worsened slightly and margins declined again.

Total natural gas demand rose by 1.4%, still remaining well below all time highs, as well as the annual peak demand (384 million m3/day).  In fact import from Algeria increased significantly and liquid natural gas import grew by 1 million m3/day. Import from Russia remained close to the peaks recorded in 2015, while import from North Europe and Libia is declining.

The unabridged report (Italian version)

For more information please contact: Francesco Gracceva, ENEA Studies and Strategies Unit, francesco.gracceva@enea.it