31.07.2020 | Strong growth also in the gas business
Axpo's Italian subsidiary has reinforced its strong position on the power and gas market in Italy. According to the 2020 annual report published by the Italian regulation authority for energy, grids and the environment, Axpo Italia is now one of the three largest companies on the liberalised power market. The company has also made a notable leap forward on the gas market. This indicates that Axpo Italia's strategy is bearing fruit.
Even Italy’s long-established energy companies must admit: Axpo Italia has developed into a very strong player in the Apennines. According to the Arera Annual Report 2020, state controlled Eni was displaced from its position among the three largest suppliers on the liberalised power market for the first time ever by Axpo Italia. With the increase in market share from 4.6 per cent in 2018 to 5.2 per cent in 2019, Axpo Italia now ranks third in the list of major suppliers in the liberalised power market.
Axpo Italia continues to hold fifth place in the Italian power market overall with sales of 11,063 GWh (+17.23%), which can be mainly attributed to higher sales to customers in the medium-voltage area (+767 GWh, +17.31%) and customers in the high and extra-high voltage area (+553 GWh, +16.55%). Thanks to these figures, Axpo Italia is now among the Italian energy traders with annual power sales of over 10 TWh.
In the high and extra-high voltage segment, Axpo Italia jumped from third to second place, with an increase in its market share from 12.6 to 14.7 per cent. As a result, Axpo Italia continues to move closer to the leading energy company in this sector, Enel, which has a market share of 18.5 per cent.
In terms of power production, Axpo Italia increased its contribution to national gross power production from 1.6 per cent in 2018 to 2.1 per cent in 2019. In the area of thermal power generation from natural gas, Axpo Italia's share increased from 3.6 per cent in 2018 to 4.2 per cent in 2019.
However, Axpo Italia has not only attained a remarkable track record in the power business: It also achieved significant growth in the gas sector. On the end customer market, Axpo Italia moved up from tenth to ninth place and increased its market share from 1.8 per cent in 2018 to 2.6 per cent in 2019. This is mainly owing to an increase in sales by 506 million m3 (+50.14%).
Axpo Italia was also able to make gains on the wholesale market for natural gas. The company increased sales by a total of 1.703 million m3 (+55.76%) and advanced from 13th to 12th place. As a result, Axpo Italia jumped from 21st to 12th place on the list of most important wholesalers.
In addition, Axpo rose from 25th to 17th place among Italy's gas importers. Gas imports last year amounted to a volume of 297 million m3.
Simone Demarchi, CEO of Axpo Italia, is pleased: "These results make us proud. And they’re a confirmation that the decisions we made achieved the expected results. We have started significant initiatives at Axpo Italia that we intend to continue in the future. For example, our investments in digitalisation and sustainability: In the end-consumer business we launched our new brand Pulsee, precisely tailored to the needs of power and gas consumers. In the business with corporate customers we focus strongly on long-term power purchase agreements.”
Tailored PPAs ensure that investors get sustainable funding for the construction of new plants in the area of renewable energies. On the other side, energy-intensive companies benefit because they can cover their power needs from renewable energies and have price certainty at the same time.
Axpo Italia is not only active in energy trading, but also plays a leading role in the area of power production. In the past years, Axpo Italia has significantly expanded its production capacities by building its own power plants and through the acquisition of existing plants from other companies. Axpo Italia has invested some 1.5 billion Euros in its power plant park. The funds also flow into technological advances with a view to improved energy efficiency and lower environmental impact.
Axpo Italia's power plant portfolio includes the 66-MW wind farm WinBis in the southern Italian province of Avellino, as well as three gas-fired combined-cycle power plants in Sparanise (Caserta province), Rizziconi (Reggio-Calabria province) and Ferrara with an installed capacity of 1800 MW.
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