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Energy Transition

The strategy of A2A to 2030 is focused on developing the production and use of green energy by accelerating decarbonization and promoting the electrification of consumption.

 

Our ESG objectives in the sphere of the Energy Transition

The challenging objectives, both Italian and European, related to decarbonization and the reduction of emissions compel us to accelerate the energy transition from fossil fuels to renewables.

We have therefore decided to remain aligned with the emission reduction targets set out by the Science Based Targets initiative (SBTi), achieving an emission factor of 230 gCO2/kWh by 2030, with a 47% decrease compared to 2017 and in line with a global warming containment trajectory below 2°C.

Our strategy thus centres on energy transition, targeting the decommissioning of coal-fired plants by 2022, with a firm commitment to decarbonization through the development of new RES (renewable energy sources), which will make up 58% of the Group’s net production by 2030, and action to improve the resilience and effectiveness of the electricity system.

There are, then, two main challenges: ensuring a high yearly rate of growth of plants (photovoltaic and wind, in particular) and guaranteeing the safety, stability and flexibility of the electricity system.

Notes: (1) includes energy recovery from waste, except BU Networks and Ergosud - (2) -30% between 2020 and 2030 (3) decarbonization target well in line with the Paris Agreement goal to limiting global temperature rise to below 2°C

 

The 2021-30 Strategic Plan thus sets the objective of contributing to Italy’s ambitious energy transition through investments totalling €10 billion in support of decarbonization and the electrification of consumption with an increase in the proportion of renewable sources so as to attain the country’s climate and energy goals.

Challenging sustainability objectives steer A2A’s Strategic Plan to 2030:

Notes: (1) except  WtE and bioenergy (already included in energy recovery), without Ergosud - (2) except DH already included in circular economy - (3) System Average Interruption Frequency Index

Our strategic actions

Accelerating RES growth

A2A’s generation capacity from renewable sources will reach 5.7 GW, thanks to over €4 billion in investments and acquisitions. Renewable production, about 12TWh by 2030, will be amply covered by the energy sold (29TWh by 2030).

 

RES1 installed capacity | GW

Notes: (1) except WtE and bioenergy (already included in energy recovery) without Ergosud - (2) Italian generation mix sets by IRENA Remap 2030

 

The two technologies in which investments will be concentrated are solar and wind. Thanks to a contribution from M&A operations in the early years of the Plan, the resulting development platform will enable international and diversified growth.

 

RES portfolio | GW, 2030

Guaranteeing system flexibility

We will bring forward the phasing out of coal to 2022 (national target: 2025). The energy transition will be guaranteed, thanks also to the capacity market, by the flexibility of high-efficiency combined cycle gas plants, for which both upgrades and new capacity are planned: a new hydrogen-ready CCGT plant and a gas peaker.

Note: (1) gross capacity without Ergosud (not consolidated

 

In terms of flexibility, we will initiate innovative projects for various forms of storage, for example: solar plant batteries, pumping and thermal storage for district heating. Moreover, we will work on the stability of the Italian electric system through investments in (~0.3 GW for green hydrogen).

Notes: (1) thermal storage not included

Supporting customers in their energy choices

Drawing on our operational excellence and long-standing presence in historically important parts of the country, we have set about expanding on a national scale, which will see us grow from being a local operator with 2.9 million customers (electricity and gas) to being a national player with six million customers by 2030. This growth will be driven by commercial development oriented towards promoting the end users’ responsible consumption: increasing sales of green energy to the market, developing our offer to customers of products and services for energy efficiency and sustainable mobility. Overall, these energy transition initiatives will benefit the environment to the tune of 26 million tonnes of CO2 emissions avoided over the course of the Plan.

 

Customer base evolution1 (electricity and gas) | M customers, 2020-30

 

In the electric mobility segment, Italy suffers a gap between the supply of charging infrastructures, related to the installation plans of the operators, and the demand, estimated on the basis of the energy requirements for the forecast number of electric vehicles in circulation. We therefore plan to promote the decarbonization of the automotive sector by investing in the e-mobility segment with three initiatives:

  • The installation of over 6,000 charging points, becoming a leading charging point operator in areas of Italy where our presence is historically concentrated;
  • The signing of 200,000 contracts for charging services, thus becoming one of the principal mobility service providers;
  • The sale of over 50,000 domestic charging points for home use (wallboxes).

Rebalancing energy grids

In the energy sector, there is a propensity towards electricity as the main energy vector. We want to be enablers of this transition of the national electricity system thanks to a plan of investment in the electricity grids worth €1.9 billion to 2030. A large proportion of the resources will be earmarked for the construction of new substations, 13 of them primary and over 1,000 secondary, as well as for the laying of 2,000 kilometres of medium-voltage lines and the upgrading of stretches of existing lines.

Investments in electricity grids along with those in gas grids amounting to €1.1 billion are all designed to ensure future-proof systems by focussing work on resilience, the development of smart grids and the installation of smart meters.

We will gain leverage through digitalization and innovation to maximize the effectiveness and efficiency of grids, cutting maintenance costs and down time. Resilient digital grids are crucial in the development of smart cities, a segment in which A2A plans to invest €300 million and become a national-scale player.

 

Electricity and gas networks RAB evolution | €B

 

CAPEX by nature | 2021-30 cumulative

 

Electricity networks KPI | 2030 (vs 2020)