Italy should restart nuclear power generation and European nations must improve cooperation on natural-resource policy to best deal with growing energy demand, a report prepared for Enel SpA, Italy's largest power company.
Energy security necessitates a review of its fuel mix including the “reintroduction of nuclear power in Italy,'' as well as the “development of renewable energy'' sources such as wind, according to the report prepared for Enel by The European House-Ambrosetti, a business consulting company with headquarters in Milan.
The report was presented today at a conference in Cernobbio, Italy, that was attended by Enel Chief Executive Officer Fulvio Conti, and European Energy Commissioner Andris Piebalgs.
Italian power prices are some of the most expensive in the 27-member European Union, partly because the country depends on expensive gas to run many of its power plants. Enel is also investing in coal, another fuel the report says must be used to increase Italian energy security. The country did away with nuclear energy in the wake of the 1986 Chernobyl accident.
Investment in Renewables
Enel is earmarking 4 billion euros ($5.4 billion) in new investment in the five years through 2011 in increasing generation from renewable sources and developing technology to cut emissions and save energy. The company is also spending 4 billion euros to convert some of Italy's largest power plants to run on coal.
On a European level growing energy demand and territorial competition make it necessary for Europe to speak with a “single voice'' on natural resource politics, according to the report.
Europe must work together to secure energy supplies and improve transportation between member states and promote technology development and cooperation agreements, according to recommendations contained in the report.
European countries are dependent on each other to guarantee unhindered transportation of energy that crosses borders through gas and power networks, the report says.
Early last year European gas supplies were interrupted because of a dispute between Russia and Ukraine, while in 2003 most of Italy suffered a blackout when a tree crashed into a Swiss power line.
“`The European Union must accelerate the interconnection infrastructure between states for the gas and power markets,'' said the report.
Europe must also work together to research and create technology that cuts down on carbon dioxide pollution, the report said. The economic bloc should cooperate to manage nuclear energy and to develop renewable energy resources, it said.
