Interview

Monti (Edison): 'Energy transition? Italy struggles, but projects worth 100 billion only in the South'

The CEO: 'In five years we have reduced debt to zero and doubled EBITDA, more than half of which has been decarbonised. Now is the time to implement long-term strategies'.

15 May 2025

4' min read

The Spanish blackout? "The more renewables are made, the more complex the system becomes: its development needs to be tackled across the board, focusing on grid reinforcements, storage, pumping, and a production mix that also includes programmable sources such as gas and nuclear". The Italian energy transition? "It is proceeding in the right direction, albeit with difficulty. It will require large investments, about 100 billion in the South alone, where we expect to make 5 billion'. The new three years at the helm of Edison? "In five years, we have more than doubled our EBITDA, more than half of which is decarbonised, and reduced our debt to zero: now we are definitively putting our long-term strategies on the ground".

In recent weeks, Nicola Monti has been confirmed as CEO of Foro Buonaparte: with Il Sole 24 Ore he takes stock of the development path of Europe's oldest energy company and ranges widely over the main topical issues: the Spanish blackout, nuclear power and the green transition.

Let's start with Spain. Don't you find that there has been a bit of a 'jackal' against renewables?

I agree. We don't know the causes of the blackout, but we do know that the more intermittent production is made, the more complex the system becomes, and its development must be managed by strengthening all the pieces of the mosaic: from grid reinforcements to accumulation systems such as batteries and pumping, from remuneration mechanisms for the flexibility offered by gas plants to the energy mix. Perhaps Italy will develop renewables more slowly than Spain, partly because the procedures for requesting authorisations have little filter and overload the evaluation structures, but unlike Madrid it is better equipped because it has been able to invest better in infrastructure to support green sources.

These include hydroelectric storage, batteries and pumped storage, on which the Pniec sets an overall target of 6 GW. What is your position?

An appropriate regulatory framework must be built on pumping: unlike batteries, they last up to 100 years, they enable a completely Italian supply chain, and they perform a service for the territories that host them by making water available for agriculture in drought seasons. They also fit into existing reservoirs, where water storage capacity can be increased, which is fundamental especially for Southern Italy, up to four times as much in the project we are developing in Villarosa, Sicily. The Mezzogiorno is a key element in this framework.

We will discuss this in the coming days at the International Forum 'Towards the South' organised by TEHA Group.

The transition will bring about 100 billion in investments to the South between generation, storage, networks and energy efficiency, we, like Edison, expect to make five. It will be a driving force for the economy and employment.

You also talk about the right mix for electricity production.

To safely manage the electricity system, we need base load and flexibility to complement interruptible sources. For the first element, if we want to decarbonise production, we need nuclear power or CO2 capture: of the two, the nuclear industry seems to have the most prospects for the future.

It could be argued that you are biased on nuclear power, given the project initiated in Italy with Edf and the Ansaldo group on Smr. With the enabling act, the country has taken the first formal step, but the time still seems long.

It will take a year to have a complete legislative framework, then the power plants will have to be authorised and built; in parallel, the Smr project will also have to be completed and engineered. In short, it will take at least 10 years to have the first domestic nuclear production, if there are no hiccups.

Doesn't he fear a referendum?

If things are explained well, I believe common sense will prevail over ideology.

Another crucial issue is that of fuel.

Italy must make a strategic choice that integrates production technology with the management of the fuel supply chain. A technological partnership with France could make it possible to build an integrated European platform for Smr while enhancing the value of the tricolour supply chain. The newly formed newco will have to make these integrated assessments. Nuclear power is in any case one of the few decarbonised technology options on which Europe can build leadership.

In the meantime, you have been confirmed as CEO for another term. What are the objectives for the next three years?

From 2019 to 2022, we refocused the portfolio on the energy transition, managed the Covid emergency, increased Ebitda and reduced debt to zero. In the second three-year period we dealt with the energy crisis, high price volatility and defined new strategic targets to 2030 and 2040. Now, even though great geopolitical uncertainties remain, we have to ground these strategies by acting on three pillars: low-emission power generation and flexibility, the gas chain and the end market, i.e. Edison Energia and Edison Next services.

What is your strategy on gas? .

Some long-term contracts will have to be renegotiated, we want to maintain a 20% share of the Italian market and at the same time increase the flexibility of the portfolio by reducing dependence on pipeline contracts and increasing the share of liquefied gas. Just yesterday we announced the first deliveries of Venture Global's US gas to Piombino, a contract that was due to start in 2021: for this we have an arbitration in place, which is expected to go to judgment by the end of 2025.

Cheo CondinaRedattore Radiocor
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Luogo: Milano
Lingue parlate: Italiano, inglese
Argomenti: Energia, infrastrutture, assicurazioni, finanza e mercati
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