Electricity demand

Developments in electricity demand

GWh
20172016Change
Italy 320,437 314,261 2.00%
Spain 252,720 250,099 1.00%
Romania 64,016 62,707 2.10%
Russia (1) 795,690 781,110 1.90%
Slovakia 30,973 30,103 2.90%
Argentina 136,700 137,278 -0.40%
Brazil (2) 572,223 567,585 0.80%
Chile (2) (3) 73,682 72,958 1.00%
Colombia 66,861 66,150 1.10%

(1) Europe/Urals.
(2) Figure for the SIC - Sistema Interconectado Central.
(3) Gross of grid losses.
Source: Enel based on TSO figures.

The year 2017 was characterized by a substantial and uniform recovery in electricity demand in almost all the countries in which the Enel Group operates.

In Europe, thanks to particularly hot weather during the summer and cold temperatures in the final part of the year, electricity demand grew by 1% compared with the previous year. Economic recovery contributed to this positive result in some sectors, such as industry, which performed well during the 2nd Half of the year. In Italy and Spain demand grew by 2.0% and 1.0% respectively, mainly due to weather effects and a recovery in consumption in all sectors. Russia posted growth in 2017 (+1.9%) compared with 2016, a positive sign in consideration of the recessionary conditions affecting the country.

Demand growth in the South American countries continued, with the exception of Argentina, which registered a contraction (-0.4%) due to price increases, with slightly larger gains than those recorded the previous year: Brazil saw an increase of 0.8%, Colombia one of 1.1% and Chile one of 1.0%.

Italy

Electricity generation and demand in Italy

Millions of kWh
20172016Change
Net electricity generation:
- thermal 199,500 190,771 8,729 4.60%
- hydroelectric 37,530 43,785 (6,255) -14.30%
- wind 17,492 17,523 (31) -0.20%
- geothermal 5,785 5,867 (82) -1.40%
- photovoltaic 24,811 21,757 3,054 14.00%
Total net electricity generation 285,118 279,703 5,415 1.90%
Net electricity imports 37,760 37,026 734 2.00%
Electricity delivered to the network 322,878 316,729 6,149 1.90%
Consumption for pumping (2,441) (2,468) 27 -1.10%
Electricity demand 320,437 314,261 6,176 2.00%

Source: Terna - Rete Elettrica Nazionale (monthly report - December 2017).

In 2017, electricity demand in Italy increased by 2.0% (to 320,437 million kWh) compared with 2016. Of total electricity demand, 88.2% was met by net domestic electricity generation for consumption (the same in 2016) with the remaining 11.8% being met by net electricity imports (unchanged on 2016).

In 2017, net electricity imports increased by 734 million kWh, essentially reflecting the increase in demand in the national market.

Net electricity generation increased by 1.9% or 5,415 million kWh in 2017, to 285,118 million kWh. More specifically, in an environment of increased electricity demand and less favorable water availability as a result of drought in Italy, thermal generation increased by 8,729 million kWh and photovoltaic generation jumped by 3,054 million kWh, posting its largest ever output in 2017 as the number of plants continued to increase.

Spain

Electricity generation and demand in the peninsular market

Millions of kWh
20172016Change
Net electricity generation 248,404 248,502 (98) -
Consumption for pumping (3,676) (4,819) 1,143 23.70%
Net electricity imports (1) 7,992 6,416 1,576 24.60%
Electricity demand 252,720 250,099 2,621 1.00%

(1) Includes the balance of trade with the extra-peninsular system.
Source: Red Eléctrica de España (Estadística diaria del sistema eléctrico español peninsular - December 2017 report). Volumes for 2016 are updated to February 3, 2018.

Electricity demand in the peninsular market in 2017 rose by 1.0% compared with 2016 reaching 252,720 million kWh. Demand was only partially met by net domestic generation.

Net electricity imports in 2017 increased compared with the previous year. This growth essentially reflected net developments in exports and imports, driven mainly the shutdown of a number of French nuclear plants in the early part of the year.

Net electricity generation in 2017 decreased by 98 million kWh to 248,404 million kWh.

Electricity generation and demand in the extra-peninsular market

Millions of kWh
20172016Change
Net electricity generation 14,220 13,778 442 3.20%
Net electricity imports 1,179 1,251 (72) -5.80%
Electricity demand 15,399 15,029 370 2.5%

Source: Red Eléctrica de España (Estadística diaria del sistema eléctrico español extrapeninsular - December 2017 report). Volumes for 2016 are updated to January 29, 2018.

Electricity demand in the extra-peninsular market in 2017 increased by 2.5% compared with 2016, reaching 15,399 million kWh. Of total electricity demand, 92.3% was met by net electricity generation in the extra-peninsular area, with the remaining 7.7% being met by net electricity imports, all from the peninsular system. The latter totaled 1,179 million kWh in 2017.

Net electricity generation in 2017 rose by 3.2% or 442 million kWh as a result of higher demand for electricity in the extra-peninsular market.

Electricity prices

Prezzi dell’energia elettrica

Average baseload price 2017 (€/MWh)Change in peakload priceAverage peakload price 2017 (€/MWh)Change in peakload price
Italy 53.9 26.20% 61.8 28.20%
Spain 52.2 31.80% 57.1 26.90%
Russia 17.2 11.70% 20 12.40%
Slovakia 41 29.80% 56.1 39.90%
Brazil 84.3 - 151.4 -
Chile 52.4 -4.70% 126.2 -1.90%
Colombia 31.3 -63.90% 60.1 -75.50%

Price developments in the main markets

Eurocents/kWh
20172016Change
Final market (residential) (1)
Italy 0.21 0.24 -9.90%
France 0.17 0.17 -0.50%
Portugal 0.23 0.23 -1.70%
Romania 0.12 0.12 -3.90%
Spain 0.23 0.22 2.70%
Slovakia 0.14 0.15 -3.00%
Final market (industrial) (2)
Italy 0.1 0.1 -2.60%
France 0.06 0.06 -4.50%
Portugal 0.1 0.09 10.00%
Romania 0.07 0.07 1.40%
Spain 0.09 0.08 6.50%
Slovakia 0.11 0.1 5.60%

(1) Annual price net of taxes - annual consumption of between 2,500 kWh and 5,000 kWh.
(2) Annual price net of taxes - annual consumption of between 70,000 MWh and 150,000 MWh.
Source: Eurostat.

Electricity price developments in Italy

1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter
1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter
20172016
Power Exchange - PUN IPEX (€/MWh) 57.4 44.9 51.6 61.8 39.6 34.5 40.9 56
Residential user with annual consumption of more than 1,800 kWh (€/kWh): price net of taxes (1) 0.1 0.1 0.2 0.1 0.2 0.2 0.2 0.2

(1) The figures for 2016 refer to residential homes with subscribed power availability of up to 3 kW and annual consumption of more than 2,640 kWh. Source: GME (Energy Markets Operator) and ARERA (Regulatory Authority for Energy, Networks and the Environment).

In 2017, electricity sales prices in Italy rose by 26.2%, mainly due to the contraction in renewables generation (hydroelectric), which characterized the entire year, the crisis in French nuclear generation and the gas emergency in December 2017.

The average annual price (net of taxes) for residential users with annual consumption of more than 1,800 kWh set by the Regulatory Authority for Energy, Networks and the Environment was €0.15/kWh, which is not comparable with the average price in 2016 as a result of a change in the definition of the consumption brackets by the Authority.