Terna: electricity consumption up in June

National monthly demand at 27.4 billion kWh: +13.8% compared to June 2020

and +1.9% compared to May 2021

TERNA: ELECTRICITY CONSUMPTION UP IN JUNE

Renewable sources covered 42% of the demand: increases in hydroelectric,

photovoltaic and geothermal production

Industrial numbers still higher than pre-Covid levels: performances of the steel, engineering, non-

ferrous metal and transportation sectors were decidedly positive

Rome, 26 July 2021 - During the month of June 2021 electricity demand in Italy was 27.4 billion kWh, 42% of which was covered by renewable sources. According to analyses by Terna, the company that manages the national transmission grid, this figure is up 1.9% compared to May and greater by 13.8% compared to June 2020, a month that was greatly impacted by a drop in demand due to the initiatives that were implemented to contain the Covid-19 pandemic. Industrial consumption continues to remain above pre-Covid levels, thanks growth in almost all the sectors monitored by Terna.

Analysing the June data in detail, this year the month had the same number of working days (21) and an average monthly temperature 2°C higher than June 2020. Adjusted for calendar and temperature effects, electricity demand was up by 9.6%. When looking regionally, the June trend was positive across the country: +14.5% in the North, +12.9% in Central Italy and in the South. In comparative terms, the data, adjusted for seasonal, calendar and temperature effects, recorded an increase of 1.9% compared to the previous month (May). In the first half of 2021, electricity demand in Italy grew by 7.8% compared to the same period last year (it remains essentially the same in adjusted terms: +7.9%).

In June, electricity demand was met for approximately 87% through domestic production and the remainder (13%) through the balance of electricity exchanged with foreign countries. More in detail, net domestic production (24 billion kWh) increased by 1.5% compared to June 2020. There were increases in the following: photovoltaic production (+5.7%), geothermal production (+3.2%), hydroelectric production (+2.3%) and thermal productions (+4.8%); wind energy production was down (-37.8%). Relative to the import/export balance, the change amounted to +587.6% due to the combined effect of an increase in imports (+140.5%) and a decrease in exports (-78.6%). In fact, in June 2020, the net import balance was very low (515 GWh) as a consequence of the sharp decrease in price differentials between interconnected markets, in turn conditioned by the anomalous demand figures recorded in many European countries due to the pandemic (Italy - Northern France spread equal to €1.2/MWh). Instead, in June 2021, the substantial recovery in demand and the increase in commodity prices led to a generalised increase in the price of electricity (for example €72.3/MWh in France, €74.1/MWh in Germany) and a strong recovery of

the price difference with Italy (Italy - Northern France spread equal to €10.1/MWh) which therefore strongly stimulated commercial import flows (3,541 GWh).

Terna's IMCEI index - which directly examines and monitors the industrial consumption of about 530 large energy consumers connected to the Italian electricity transmission grid (large industries in the following sectors: cement, lime and gypsum, steel, chemical, engineering, transportation, food, paper, ceramics and glass and non-ferrous metals) - confirms also for this month the substantial return of industrial consumption to pre-Covid levels: the index is in fact up 14.2% compared to June 2020 and 5.1% compared to June 2019. Furthermore, Terna has revealed that there was also a slightly positive cyclical change (1.8%) compared to the previous month (May). Double-digit increase for the steel, engineering, non-ferrous metal and transportation sectors. Only the food sector was down.

In view of the anomalous values in electricity consumption recorded from March 2020 onwards, Terna deemed it appropriate to conduct an additional statistical analysis also for this month and using 2019 as a benchmark. According to Terna's data, electricity demand for June 2021 was down by 1.5% compared to June 2019 (-1.3% in adjusted terms). Figures for the first half of 2021 are down by 2% compared to the same period in 2019 (-1.7% adjusted).

A detailed analysis of provisional 2021 monthly electricity demand is available in the publication "Monthly Report on the Electricity System", under the section "Electric System >> Dispatching >> Operating Data" at www.terna.it.

Real-time data on the operation of the national electricity system can also be found on the Terna app, available on all app stores:

https://play.google.com/store/apps/details?id=it.terna.energia&hl=it

https://apps.apple.com/it/app/terna/id1458535498