The Italian anomaly

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Rome Energy Meeting 2004
26-28 aprile 2004, Roma
EcoEnergy Meeting 26 aprile 2004 Centro
Congressi Montecitorio
Andrea Clavarino The Coal Option
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THE ASSOCIATION
Assocarboni is an international association of
coal operators, based in Rome and represented in
Bruxelles, with more than 80 members,
representing the entire coal value chain, the
major coal producers like Bhp Billiton, Anglo
Coal, Rio Tinto, Xtrata,  PT Adaro, PT Kaltim
Prima, Mapco, Peabody, Weglokoks, Rheinbrown,
Consol etc, cement producers like Unicem,
Italcementi, Cementi Buzzi etc, steel producers
like Riva and Lucchini, terminal operators like
Terminal Rinfuse Italia, traders like Energy,
Glencore, Bulk Trading, Unicoal and RAG Trading,
the leading bulk shipping companies Coeclerici,
Bottiglieri Deiulemar, DAmato, Augustea, MBS end
users like Enel, Endesa, Edison, Tirreno Power,
Electrabel, power generation engineering
companies like Alstom, Foster Wheeler and
Techint.
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The Italian anomaly
Contribution to electricity production, year
2003
2
Source Ocse
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Prices evolution in the Italian electricity
marketCent/kWhAverage price 1996-2002
4
-10 in real terms (Real annual rate 1,9
- 25
72
13
3
5
YEAR 2006Italian power dependence

• Power production from natural gas 60
• ALGERIA RUSSIA
• 61.5 (Mc/A) 66

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Regassification capacity comparison between
Italy and Europe
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7
International comparison among power
imports Year 2003
POWER IMPORTS IN
6
8
Incremental Gas Demand in OECD Europe
The power sector accounts for most of the
increase in demand in 2000-2030
7
Source IEA
9
OECD Europe Gas Balance
Imports will continue to grow as production
stagnates
8
Source IEA
10
Net Imports of Gas by Origin in OECD Europe
2000
2030
625 bcm
180 bcm
The Middle East likely to become a major new
supplier of gas to Europe primarily because of
increased LNG shipments
9
Source IEA
11
Proven Gas Reserves
10
Source IEA
12
Net Gas-Trade Flows, 2030
Bcm
With global gas reserves concentrated in the
Middle East, cross border gas trade becomes more
important
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SourceIEA
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Coal as a strategic option economic and stable
100
73
67
64
COAL
Fixed Costs

• The most economically competitive
• The most stable and foreseeable regarding costs
• With no geopolitical reflections

45
40
Gas
Brent
35
30
25
20
15
10
5
Coal
0
92
00
02
12
82
86
90
94
96
98
80
84
88
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3 billion Euro invested in the 1995-2003 period

• All the big power stations are equipped with
  systems for the reduction of the polluting
  emissions
• - desulphurizers
• - denitrification systems
• - dusts elimination systems
• The installed plants are among the most
  efficient and modern in the World

• Emissions under the existing legislative
  limitations
• Emissions of the Italian power plants are among
  the lowest in Europe

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ENVIROMENTAL FRIENDLY INVESTMENTS INTO THE COAL
POWER PLANTS

• ?Investments done between year 1995 and 2003
• 3 BILLION
  EUROS
• ?COAL POWER PLANTS EFFICIENCIES
• ITALY 39
• EUROPEAN AVERAGE 35
• CONTINENTAL EUROPE AVERAGE 25
• EUROPEAN AVERAGE IN 2020 (IEA FORECASTS) 40
• ? EMAS CERTIFICATIONS
• 8 out of 11 coal power plants (84 of the
  installed capacity) will be EMAS certified within
  2003

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ENVIROMENTALIZATION OF COAL POWER PLANTS

• Enviromental achievments in emissions reductions

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CO2 EMISSION

• ITALY - 7,6 AS COMPARED TO 1990
• (Source Italian Energy Watchdog)
• WORLD 22.741,7 m/TON
• IN ITALY 25,58 m/TON (PRODUCED FROM COAL FIRED
  POWER PLANTS) ?
• 0,10 ON THE WORLD TOTAL

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