Table of Contents
Hydroelectric power generation in Italy
When it comes to energy transition, there is a forgotten energy source: hydropower. The first hydroelectric power plant in Italy was inaugurated in far 1895 in Paderno d'Adda.
From the beginning of the 20th century to the present, the mountainous morphology of the territory Italian and industry capabilities have enabled Italy to become a pioneer in transforming the kinetic force of water into energy.
According to the 2023 data of TERNA on renewable sources in Italy are active 4,824 reservoirs, for 21,708 MWh produced.
The slopes on the Alpine range mean that northern regions are home to most of the facilities. Piedmont holds the record with 1,080 facilities, followed by Lombardy and Trentino Alto Adige, while Puglia has only 10.
La quantity of power plants does not always correspond to the power generated, the regions where hydropower is leading the way in fact are Lombardy with 5,694 MW and Trentino Alto Adige, while there has been a mini-hydro boom in Piedmont.
In south-central Italy, power plants are few, but not insignificant. In Abruzzo for only 78 plants, 1,268 MW of power is produced, almost as much as Veneto and more than Valle d'Aosta, indicating that the unit size of each plant is larger.
Menerva asked for a strategic framework to Stephen Aggravi, former Councillor for Productive Activities of the Aosta Valley Region, a leader in hydroelectric production per inhabitant.
Aggravi is also the author of the volume "
Menerva: Good morning Stephen, it seems that among all the sources of the energy transition, from solar to geothermal, hydropower seems almost forgotten.
Then we could say, let's start from the source, what are the prospects and main challenges of the hydropower sector in Italy?
Aggravi: The Italian hydropower sector currently faces two major issues: the regulatory framework for large hydroelectric derivation concessions that is highly dependent on the European level and the need to renew, upgrade, large plants whose age (in some cases) is reaching the century mark.
Not to forget the quagmire of medium and small hydropower issues between regulatory framework and development limitations, as well as the integrated management of the entire water cycle from source to use, not just for power generation. The risk is forgetting about water as part of the great industrial transformation process that is the energy transition.
Perspectives, norms and national interest
Menerva: We understand that this sector is also being stifled by the usual bureaucratic byzantinisms. And so, taking up the title of the book, what are the future prospects for the Italian hydropower sector, considering this regulatory framework?
Aggravi: Italy has made the king's most realistic choice that could be made by taking legislation in the direction of competitive bidding for the renewal of large concessions. A position that a liberalist like me should fully espouse, but which from the analysis I have modestly tried to conduct raises some questions.
The first: can hydroelectric plants really be considered "containable" without any risk? The second: could pure contention not result in the arrival of realities outside the logic of the market in which the main (and also little hidden) shareholder is actually a state-entrepreneur who wants to prey on and create positions for itself within the competitor's economy (see Russia and China).
Third, can't the competition be related more to the design and upgrading idea of the plant that is of strategic interest in energy anyway? This last point is the most important one I would say.
Menerva: Abroad in fact, as in France, hydropower is frequently in the hands of a single concessionaire to protect the national interest. What measures can be taken to revive and safeguard Italy's large hydropower?
Aggravi: On the revitalization side, it is certainly not possible today to think of making up for the much lost time, especially as far as the hydropower industry is concerned, but I believe that in favoring rewamping and combining with other renewables, with nuclear (in the book I talk about SMR reactors) for example to produce hydrogen at convenient times of the day represents the future of our hydropower (as well as the European one).
On the safeguard side, I have repeatedly mentioned the so-called "Colao Plan" where concessions of strategic infrastructure, such as our dams or reservoirs, for example, need a different perspective than tenders tout court (and the discussion can be expanded to other strategic realities in the country).
Growth and synergies with other renewables
Menerva: Despite the difficulties, TERNA data indicate that the number of plants connected to the grid remains on the rise: in 2023, 4,824 power plants are operational while a decade ago in 2009, there were less than half only 2,249.
So with a view to the energy transition, could the use of hydropower in Italy be further incentivized?
Aggravi: I would say that policies of revamping and upgrading existing plants, as well as, I repeat, combining them with other energy sources represents the future of this very mature and established technology. Dams are already being used as part of the national power system revamping program, they work like big batteries, let's use them and combine them between civil (e.g. agriculture) and industrial (e.g. energy) uses.
Menerva: Dams as large batteries, the great Achilles heel of renewables, energy storage during periods of high consumption and its release. What are the economic and environmental advantages of hydropower over other renewable energy sources?
Aggravi: An investment asset now amortized by time and therefore cost-effective because today's investment starts from scratch (concessions permitting). A known and mature technology, but precisely because of this Less dependent on so many rare materials real strategic crux of renewables. A revitalization of hydropower can also lead to a more conscious and efficient use of the water cycle, which today is endangered by drought and concentrated, heavy rainfall in a short period of time.
Large power plants over 1000 MW
Luigi Einaudi Power Plant
Power: 1065 MW
Edolo power plant
Power: 1000 MW
Presenzano hydroelectric power plant
Power: 1000 MW
Menerva: An interesting intertwining of agriculture and industry through hydropower. What other synergies can be developed between Italian hydropower and other renewable energy sources?
Aggravi: I mentioned it earlier, large and medium-sized reservoirs are like big batteries. Why not take advantage of the mechanism that was put in place under the Italian electronuclear program i.e., pumping water at night, with lower energy cost, and subsequent turbination the next day so as to take advantage of the cost-performance differential?
This mechanism could reoccur tomorrow with the use of SMR reactors. Similarly, the combine with other renewables could lead to the generation of hydrogen, a useful vector for its later use for other uses (a solution that would also solve the age-old issue of energy storage, the real Achilles' heel of renewables).
Menerva: What are the emerging technologies in hydropower and how could they be integrated in Italy?
Aggravi: Hydropower is a mature and well-known technology. Certainly, research is focusing on possible combinations with other renewable energy sources, as well as on making pumping more efficient and high-performance (Japan is doing a lot in this regard). But the strength of hydropower lies in just that: low dependence on rare materials.
Limits to development and international framework
Menerva: It seems to be a technology with great advantages and few risks. So what are the most significant obstacles preventing the development of the hydropower sector in Italy, after it was one of the pioneer countries worldwide?
Aggravi: Fear, just remember Vajont, and land consumption that is no longer tolerated by the public today. But something can be done on the side of small and medium-sized invaders. Certainly a renewal or granting of a new permit must be for a congruous period given the proportionally certainly more expensive investments than in the past. Another source of doubt, rather than hindrance, is the craze for other renewables, solar and wind, whose ultimate yield, however, is significantly less than that of hydropower.
Menerva: Menerva wants to make a small contribution to Outline a strategic plan: given that one of the main obstacles is the legislative aspect, how could the regulatory framework be improved to facilitate investment in the Italian hydropower sector?
Aggravi: As I have tried to portray in my analysis and as I have already mentioned, the outline written in the so-called "Colao Plan" with the possibility of Europe-wide renegotiation of the bidding regulations would be crucial, especially for large reservoirs, alternatively by putting out to tender not so much the concession tout court but the management, development and upgrading programs of the facility on which the bidding is based.
This is the only way to link the need for yield for the public (derivation fees) with overall strategic profit. One thing, however, must change: the demand of many territories (and therefore of policy makers) to move to tout court tenders also stems from the fact that many operators (even monopolists for a historical period) have given nothing back to the territories on which these plants insist. However, this aspect must necessarily change.
Menerva: Whowe hear with an international look. Famous is the colossal Three Gorges Dam in China, but the potential for large-scale projects is probably exhausted.
What are successful examples of hydropower projects in the rest of the world that could be adopted or adapted in Italy?
In the world today we have realities that are investing heavily in large projects without any environmental qualms or permitting issues, Turkey And China in the first place. They are sort of catching up with the time that for us, for Europe there was already at the turn of World War II.
Others, such as Japan or Norway, where much investment is being made in pumping technology and plant upgrades.
We are still lost in the regulatory quagmire and the uncertainty of what is to be done. Before we think of major development plans, I think it is more necessary than ever to go ahead and put the central state, regions and even managers around a table and decide on a common path to pursue without encroaching on each other's just autonomy.
But if bidding for concessions will not be directed toward upgrading facilities and strengthening the industry (which does not mean going back to the monopolist), let us at least hope to safeguard the existing!
Menerva: Thank you very much Stephen, where can you find your research "
Aggravi: Thanks to Menerva, those interested can find him at Amazon!
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