Terna: electricity consumption in Italy totalled 316.8 TWh in 2022

TERNA: ELECTRICITY CONSUMPTION IN ITALY TOTALLED

316.8 TWH IN 2022

National demand down by 1% compared to 2021, renewable sources represent 31% of demand

The trend that characterised the final months of the year continued in December: a 9.1% drop in

overall consumption and a 15% drop in industrial consumption

Rome, 23 January 2023 - In 2022, according to data from Terna, the company that manages the national transmission grid, electricity demand in Italy totalled 316.8 billion kWh, down by 1% compared to 2021. Renewable sources covered a total of 31.1% of demand, recording, in particular, a marked drop in hydroelectric production. The IMCEI index was also down: the industrial consumption of so-called"energy-intensive" companies decreased, in fact, by 5.4% compared to 2021.

The modest drop in electricity demand recorded in 2022 is the result of a "two track" year, with positive trend changes in the first part of the year and negative ones starting from the month of August, the result of a series of concomitant factors: the measures to contain electricity consumption implemented by citizens and businesses on the instructions of the Government, the high prices that characterised the energy markets and the rather mild temperatures recorded in the autumn and winter months. On the production side, the reduction in hydroelectric generation (-37.7%), attributable to the long period of drought, was partially offset by the increase in thermoelectric generation (+6.1%) and in particular by the increase in coal-fired production following the actions implemented by the Government to deal with the gas crisis. In this scenario, the external balance remained substantially unchanged compared to 2021, against strong change during the year due to the volatility of prices on the energy markets.

Precisely with a view to promoting efficient consumption behaviour, in December 2022 Terna, in agreement with the Italian Ministry of the Environment and Energy Security, launched "We Are Energy", an awareness campaign for the conscious and virtuous use of electricity in Italy. The communication campaign identified a series of behaviours through which it is possible to contain consumption, and therefore costs, with a view to sustainability, cost savings and greater energy efficiency, to the benefit of everyone. The app on the electricity system, available on all devices, was enhanced with a new feature: it is called Ecologio and allows every citizen to easily identify the daily peak time slot in which it is preferable to consume less energy (Monday to Friday) and thus be able to consciously choose to moderate their needs while reducing costs for the entire Italian electricity system.

Analysing the data for 2022, the demand for electricity in our country amounted to a total of 316.8 billion kWh. Regionally, the change was down in the North (-1.5%) and substantially in line with the values of the previous year in the Center and South and on the islands (respectively -0.3% and - 0.2%). As much as 86.4% of electricity demand in Italy was met by national production and the

remainder (13.6%) by the balance of electricity exchanged with foreign countries. Net national production (276.4 billion kWh) decreased by 1.3% compared to 2021 with the following breakdown by source: increases in photovoltaic (+11.8%) and thermoelectric (+6,1%); decreases in hydroelectric (-37.7%), wind (-1.8%) and geothermal (-1.6%). The IMCEI index recorded a decrease of 5.4% compared to 2021.

Moving on to the analysis of the month of December 2022, total electricity demand stood at 25 billion kWh, down by 9.1% compared to December 2021. This data is also affected by the fact that there were two less working days (20 vs 22) and an average monthly temperature 2°C higher than December 2021. The figure for monthly electricity demand, adjusted for calendar and temperature effects, was therefore down by 6.5%. In economic terms, electricity demand in December 2022, adjusted for calendar and temperature effects, is substantially stable compared to the previous month (November 2022). Looking at the regional level, the December 2022 trend was negative across the country: -8.3% in the North, -9.4% in Central Italy and -10.5% in the South and on the Islands. As much as 89.4% of electricity demand in Italy in December 2022 was met by national production and the remainder (10.6%) by the balance of electricity exchanged with foreign countries. Renewable sources covered 26.9% of monthly demand. Net national production (22.5 billion kWh) decreased by 11.9% compared to December 2021 with the following breakdown by source: wind (- 39.4%), hydroelectric (-18.6%), photovoltaic (-17.2%), thermoelectric (-6.1%) and geothermal (- 1.9%). With regard to the import/export balance, the value was up by 17.1% due to the effect of an increase in exports (+9.6%) and in imports (+15.5%). The IMCEI index relating to industrial consumption in December 2022 recorded a decrease of 15% in the month compared to December 2021: almost all sectors were down, in particular steel, engineering and non-ferrous metals. Positive changes for the food, ceramics and glass industries; the chemical industry remained stable. Even at the economic level, the figure adjusted for calendar and temperature effects shows a drop of 6.4% compared to the previous month (November 2022).

A detailed analysis of provisional 2022 monthly electricity demand is available in the publication

"Monthly Report on the Electricity System", under the section "Electric System>>Dispatching>>Operating Data" at www.terna.it

Real-time data on the operation of the national electricity system can also be found on the Terna app, available on all app stores:

https://play.google.com/store/apps/details?id=it.terna.energia&hl=en

https://apps.apple.com/it/app/terna/id1458535498