Electrical energy dispatching
Coverage of demand
Coverage of demand, the trend of which is described in the section above, “Demand for electricity in Italy,” is guaranteed by Terna through appropriate production margins as part of the process of planning the non-availability of grid elements in coordination with the non-availability of generation and considering production by plants using renewable sources. The table below shows the maximum figures for power in MW seen during each month of 2014, and compared with the same period for the previous year:
In 2014, demand reached a peak of 51,550 MW on 12 June 2014 at 12:00 p.m., -4% below the peak recorded in 2013.
The table below shows available power and reserves in correspondence to the highest peak of 2014:
In 2014, foreign trade recorded net imports up by approximately 1.5 TWh compared to the previous year (+ 3.7% yoy).
The average median hourly price on the Italian energy exchange (IPEX/PUN) for 2014 came to € 52/MWh, a notable decrease (-17% yoy) in comparison to 2013. It is still higher than the prices on the foreign French (PNX) and German (EEX/ PHELIX) markets, which also dropped, but to a lesser degree in absolute figures than the PUN (Single National Price):
- price on the French energy exchange (PNX) of € 35/MWh (-20% yoy);
- price on the German energy exchange (EEX/PHELIX) of € 33/MWh (-13% yoy).
As a consequence, the spread between IPEX and the foreign exchanges decreased by around € 4/MWh, going from € 22/MWh to € 18/MWh. The difference in price of the exchanges is justified by the different generation fleet, characterised in Italy by greater production costs, hence the prevalence of import trade.
The trade and the weekly average prices in 2014 are presented below.
For the tenth consecutive year, generation from renewable sources - solar, hydro, wind and biomass - has seen significant growth, now covering 38% of all demand in 2014. On the other hand, for the third consecutive year total demand for electricity declined, as commented on in the “Energy Context” section, to which the reader is referred. All of this clearly has an effect on electricity prices. The PUN, Single National Price, in fact was equal to € 52/MWh, the lowest since the start of the Electricity Market26, -17% with respect to 2013, an effect determined both by the factors
cited above, as well as the lowering of gas prices which mean that numerous traditional plants became more competitive.
As a consequence, the price differential with bordering countries declined, despite the continuation of the positive sign, mainly due to the different generation fleet. The trend for exchanges abroad and prices on the Italian and foreign stock markets showed, in certain hours, exports from Italy with the spread nearly vanishing. For example, during the spring, coinciding with planned maintenance of French nuclear plants, or in August, when Greece reached extremely high peak demand due to tourism. Among other things, the spread with Greece is negative on average, as the Italian price is lower
than the Greek one.