The Italian Utilities Industry. Success Stories and Future Perspectives

This book addresses the fundamental changes that the Italian public utilities sector has undergone in the last two decades. Since the late 1990s, liberalisation and privatisation have replaced state-owned monopolies at both the national and local level, new technologies have created a broad range of new opportunities for power generation and distribution, and a redesigned public policy agenda has brought to the fore a whole set of new priorities. In this fast-changing environment, firms have redrawn their strategies, redesigned their business architectures and models, invested in infrastructure and R&D, taken advantage of growth opportunities at home and abroad, opened up their ownership structure, revised their offerings, and developed a new approach to customers. As a result, a radically altered market structure has emerged. As the sector tackles the overriding challenge of sustainability and energy transition, the book takes stock of such past and ongoing developments through the direct testimonies of various stakeholders: the companies in the energy, water, and waste management sectors that are at the forefront of this sweeping transformation; regulators; financial partners; and management consulting firms. The diversity of perspectives and wealth of information presented make this book a valuable resource for anyone wanting to grasp the direction, intensity and causes of change, as well as the nature of the challenges that lie ahead.

This work has been prepared as part of the research activities of the Observatory on Alliances and Strategies in the Pan-European Utility Market, one of Agici’s Research and Advisory units.ù

Index

Part I 2000–2020 A Revolution in the Italian Utilities Industry: What’s Next?

Utilities: Fundamental Players for Socio-economic and Environmental Development
Andrea Gilardoni

The Journey Towards the Energy Transition
Pierfederico Pelotti

Regulating by Uncertainties the Energy Sector in the Deepest (Ever) Transformation, While Fostering Future-Proof Investments
Guido Bortoni

Part II Energy Transition, Business Transformation, and the Role of International Players

From National Champion to Global Player
Francesco Starace

From Letta and Bersani Decrees to the Future Challenges. The Role of Edison
Nicola Monti

ERG: An Example of Swift Change of Business Towards Sustainability
Alessandro Garrone

Part III Utilities and Territories: Aggregation Processes, Circular Economy and Sustainability

A2A: A National Leader as a Result of Aggregations
Giovanni Valotti

Hera Group: The Path Towards Shared Value and Circularity
Stefano Venier and Stefano Verde

Iren: Growth Through Successful Acquisitions
Massimiliano Bianco

CVA: Renewable Sources Value Chain in the Experience of a Leading Hydroelectric Player in Italy
Enrico De Girolamo

Egea: The National Multi-Utility, Alba-Based
PierPaolo Carini and Rosario Bisbiglia

Part IV Network Operators: A Changing Role and Challenges for the Future

Terna: Challenges for the TSO. From Liberalisation to Energy Transition
Luigi Ferraris

E-Distribuzione: The Role of the Largest Italian Distribution System Operator in the Energy Transition
Livio Gallo and Vincenzo Ranieri

Snam: Healing the Climate with Hydrogen
Marco Alverà

Italgas: Investing in the Future of Gas Distribution
Paolo Gallo

Part V The Role of the Financial System Behind the Development of the Utilities Sector

Sustaining the Energy Transition in Italy: Financing, Policies and the Role of Cassa Depositi e Prestiti
Luca d’Agnese

Financial and Bank Systems Supporting Utilities Industry Growth
Luca Matrone, Matteo Balasso and Urbano Maria Cremona