The Ministry's report

Energy: from renewables to gas, here are Italy's report cards

The snapshot of the state of the art contained in the report produced by the department headed by Gilberto Pichetto Fratin and presented at the Rome headquarters of the Gse

by Celestina Dominelli

4' min read

4' min read

Household energy consumption down in an environment that remains complex. Less dependence on foreign supplies. And again, sprint on renewables, which are an increasingly important component of the Italian energy mix. These are some of the data that emerged from the snapshot taken by the Annual Report on the National Energy Situation 2024, which was carried out by the Ministry for the Environment and Energy Security headed by Gilberto Pichetto Fratin and whose results were illustrated in these days in Rome, at the headquarters of the Gestore dei Servizi Energetici (GSE), in the presence of the owner of Mase and the company's CEO Vinicio Mosè Vigilante.

The report's working group

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But what is the state of the art? The report, which was drawn up by a working group composed of representatives from Mase, the Ministry of Enterprise and Made in Italy, the Bank of Italy, Enea, Gse, Istat, Inapp, Eni, Snam and Terna, reconstructs the Italian situation segment by segment, starting with the primary demand for energy, which fell by 4.4% to 143.961 thousand tonnes of oil equivalent (ktoe), compared to the previous year's demand of 150,531 ktoe. This gross energy availability in 2023 consisted of 35.0% natural gas, 37.9% oil and petroleum products, 19.9% renewables, 3.3% solid fuels, 3.1% electricity, and 0.8% waste.

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Imports

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The share of net imports in gross energy availability decreased from 79.2% in 2022 to 74.6% in 2023, improving our country's dependence on foreign sources of supply. In particular, there was a sharp decline in net imports of solid fuels (-2,911 ktoe, -38%), renewable energies and bioliquids (-621 ktoe, -22%) and natural gas (-8.823 ktoe, -15%), while there was a smaller decrease in net imports of oil and petroleum products (-1,926 ktoe, -2.5%), offset by a considerable growth in net imports of electricity (+711 ktoe, +15%).

Domestic Production

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With reference to domestic production, there was an increase of 1,461 ktoe, or 4.2% of the previous year's production, mainly attributable to an increase in energy produced from renewable sources (+838 ktoe, +3.2%), caused by the growth of hydroelectric power due to favourable climatic phenomena, and an increase in additives among petroleum products (the latter to be confirmed).

Final Energy Consumption

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Final energy consumption decreased overall by 2.8% year-on-year to 107,666 thousand tonnes of oil equivalent (ktoe), compared to 110,778 in 2022. This decrease manifested itself, in particular, in the industry sector (-6.4%) and in the residential sector (-8.1%), compared to a significant increase in services (+5.2%) and a smaller increase (+0.8%) in transport. Final consumption was 32.7% in transport, 24.4% in residential, 20.4% in industry, 15.0% in services, and 7.5% in the remaining sectors. In terms of sources, final consumption was mainly met by oil and petroleum products (39.8%), natural gas (27.1%), electricity (21.2%) and renewables (10.1%). In 2023, electricity consumption of 23,959 ktoe was met 83.2% from domestic production, which amounted to 253.7 TWh (-6.7% compared to 2022) and the remaining 16.8% from net imports from abroad, amounting to 51.3 TWh, up 19.2% compared to the previous year.

Thermal and hydroelectric

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The largest contribution to production came from non-renewable thermoelectric power, with 146.6 TWh of gross production, a decrease of 19.3% compared to 2022, accounting for about 55% of the total energy produced. In contrast, hydroelectric power, after its historical low in 2022, returned to growth of 38.7% to 42 TWh. A historical record for wind and photovoltaic production, which stood at 23.3 TWh and 30.7 TWh respectively (with an overall increase of 11.1% compared to 2022).

Italian Energy Summit 2024<br/>Verso un sistema energetico sicuro, competitivo e sostenibile

Renewables

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Renewable energy sources, in continuity with previous years, in 2023 found wide diffusion in Italy in all sectors of use: electricity (with solar and wind sources progressively growing), thermal (mainly driven by the spread of heat pumps) and transport (biofuels and biomethane); the share of total energy consumption covered by renewables is estimated at 19.8%, up by about 0.7 percentage points compared to 2022. Investments in new plants are on the rise, reaching values of about EUR 6.7 billion, with employment benefits of over 39,000 for electrical renewables and 37,000 for thermal renewables.

The demand for gas

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Demand for gas in Italy in 2023 totalled 61.7 billion cubic metres, a reduction of 7 billion cubic metres (-10.3%) compared to the previous year. The reduction is justified by the persistent stagnation affecting all economic and production sectors, the limited use of gas for power generation, the plan to contain gas consumption, and particularly mild weather conditions during 2023.

Energia, Pichetto "Nel mix anche nucleare di nuova generazione"

Energy efficiency

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As far as energy efficiency is concerned, there is a reduction in final consumption of 3.65 Mtoe (preliminary estimates) In 2023, the percentage of achievement of the energy saving target was 93%, which reflects on the one hand an increase on an annual basis in savings from White Certificates and the Thermal Account, against a slowdown observed in new energy savings generated by building renovation works incentivised by tax deduction mechanisms. Investments in energy efficiency in 2022 will amount to 6.6 billion euros, while employment benefits will exceed 87,000. Between 2022 and 2023, investments in energy efficiency made by the Public Administration and supported by the Conto Termico mechanism will increase from Euro 169 million to Euro 327 million.

Transport trends

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Final energy consumption in the transport sector is estimated at slightly higher levels than the previous year (+0.8%). There is a contraction in the use of natural gas (-6.8%), offset by growth in petroleum products (+0.6%), electricity (+5.6%) and biofuels (+10.3%). The incidence of more sustainable energy sources (liquid biofuels, biomethane, electricity from renewables) on total sector consumption is around 5.5%.

household consumption

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In 2023 Italian households consumed 49,315 Ktoe of energy (-4.3% compared to 2022) spending 101.6 billion euro (-4.2%). 55.8% of the energy used is for domestic use and the remaining 44.2% for private transport. Domestic use (reduced, in quantity, by 8.0% compared to 2022) was met mainly with natural gas (12,959 Ktoe), biomass (6,056 Ktoe) and electricity (5,340 Ktoe), for which 22.8 (-17.0%), 3.4 (+8.3%) and 22.6 (+0.6%) billion euros were spent respectively. For own-account transport (+0.6% in physical terms), which cost households around EUR 47.5 billion (+0.5%), mainly diesel (11,587 Ktoe) and petrol (8,141 Ktoe) were consumed, costing EUR 25.0 (-2.5%) and 19.6 (+6.7%) billion respectively. Between 2022 and 2023, there is a decrease in total energy expenditure of 4.2% to approximately EUR 101.6 billion (valuation at current prices).a

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