Italy to approve measures to boost energy security as gas prices rise
Italy will approve on Monday a decree paving the way for extending hydroelectric and geothermal power concessions, a draft showed, while also cutting red tape for onshore liquefied natural gas (LNG) terminals and boosting renewable energy. Italy's Prime Minister Giorgia Meloni's government has approved measures to boost energy security as gas prices rise. The legislation includes extending hydroelectric and geothermal power concessions, extending onshore liquefied natural gas terminals, and increasing renewable energy. The government's plans also include the construction of a hub for floating wind power, and reviving an existing programme run by state-controlled group GSE to buy domestically produced natural gas and sell it to energy-intensive firms at affordable prices. Other measures include extending the duration of expired or expiring concessions held by companies handling hydroelectric or geothermal plants in exchange for more investments. The move is likely to lead to criticism from environmental lobbies for boosting offshore drilling in the Adriatic sea. The decree also includes plans to speed up work on two LNG terminals promoted by Enel (ENEI.MI) and Iren (IREE.MI), and a framework for the development of carbon capture and storage facilities (CCS), which are deemed crucial for meeting emission reduction targets by experts.
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Veröffentlicht : vor 2 Jahren durch Giuseppe Fonte, Francesca Landini in Business
ROME, Oct 23 (Reuters) - Italy will approve on Monday a decree paving the way for extending hydroelectric and geothermal power concessions, a draft showed, while also cutting red tape for onshore liquefied natural gas (LNG) terminals and boosting renewable energy.
Prime Minister Giorgia Meloni's government will meet at 1530 (1330 GMT) to discuss and approve "urgent measures to promote the country's energy security," officials from her office said.
The legislation comes in the wake of rising wholesale gas prices, as the conflict between Hamas and Israel in the Middle East keep energy markets on edge.
Rome's plans include the construction of a hub for floating wind power, the draft said without providing further details.
In the package, still subject to changes, the government will try to revive an existing programme run by state-controlled group GSE to buy domestically produced natural gas and then sell it to energy-intensive firms "at affordable prices."
Other measures set parameters to extend the duration of expired or expiring concessions held by companies handling hydroelectric and geothermal plants, in exchange for more investments.
The move will likely help utilities including Enel (ENEI.MI) , A2A (A2.MI) and Edison to invest to modernise their hydropower stations.
To increase supplies of natural gas, the decree states that onshore LNG terminals, for which the relevant authorisations have already been issued, represent "strategic interventions of public utility, non-deferrable and urgent."
With this move, the government aims to speed up work on two LNG terminals promoted by Enel in Porto Empedocle and by Iren (IREE.MI) and Sorgenia in Gioia Tauro, both located in southern Italy.
A measure that will likely trigger criticism from environmental lobbies paves the way for boosting offshore drilling in the Adriatic sea, provided that the fields have a potential gas mining exceeding 500 million cubic metres.
The decree also takes the first steps to outline a framework for the development of carbon capture and storage facilities (CCS), which are deemed by experts as crucial for meeting emission reduction targets agreed with European Union authorities.
Energy group Eni (ENI.MI) and power grid operator Snam (SRG.MI) unveiled in September a project to set up a carbon capture hub offshore Ravenna.
In addition, Rome plans to extend from a minimum of six to a maximum of 12 months a special scheme that helps some households purchase electricity from their incumbent supplier. The scheme had been scheduled to expire next January.
Themen: Oil & Gas, Italy