Terna: strong growth in electricity consumption in August, values higher than before Covid

Positive performance continues also in the industrial sector: in the IMCEI index, double-digit

growth for the steel and non-ferrous metals sectors

TERNA: STRONG GROWTH IN ELECTRICITY CONSUMPTION IN

AUGUST, VALUES HIGHER THAN BEFORE COVID

National monthly demand at 26.8 billion kWh: +2.7% compared to 2020 and +2.4% compared to 2019

Renewables at 41%: increases in hydroelectric, wind and photovoltaic production

Rome, 24 September 2021 - In August, electricity consumption in Italy recorded strong growth, with values that were decidedly higher even than those recorded before Covid. According to data from Terna, the company that manages the national electricity grid, the monthly electricity requirement was equal to 26.8 billion kWh: demand grew by 2.7% compared to August 2020 and by 2.4% compared to August 2019. It increased also in terms of the share of renewable sources: clean energy covered 41% of the monthly electricity demand, compared to 39% a year ago and 37% in 2019. The positive performance of the industrial sector continued this month: the IMCEI index recorded a substantial increase of 10.6% compared to 2020 and 9.2% compared to 2019, thanks to the growth of almost all the sectors monitored by Terna.

Specifically, August had one more working day (22 vs 21) and an average monthly temperature 0.4°C lower than August 2020. The figure of electricity demand, adjusted for calendar and temperature effects, was up by 2.4%. When looking regionally, the August trend was positive across the country: +0.8% in the North, +3.1% in Central Italy and +5.9% in the South. In comparative terms, the data, adjusted for seasonal, calendar and temperature effects, recorded an increase of 1.7% compared to the previous month (July 2021). In the first eight months of 2021, electricity demand in Italy grew by +6.7% compared to the same period last year (unchanged in adjusted terms).

In August, electricity demand was met for approximately 86% through domestic production and the remainder (14%) through the balance of electricity exchanged with foreign countries. More specifically, net national production (23.2 billion kWh) recorded a decrease of 5.8% compared to August 2020. Wind (+19.4%), hydroelectric (+9.7%) and photovoltaic (+3.1%) energy production increased. Thermoelectric (-13.7%) and geothermal (-1.5%) production declined. Relative to the import/export balance, the change amounted to +142.5% due to the combined effect of an increase in imports (+82.6%) and a decrease in exports (-58%).

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 strong growth in industrial consumption compared to values from the previous year (+10.6% compared to

August 2020) and compare to before Covid (+9.2% compared to August 2019). The steel and non- ferrous metals sectors recorded double-digit growth; the engineering and chemical sectors were also positive. Values for transportation and construction materials dropped. Taking into consideration seasonal, calendar and temperature effects, the IMCEI index recorded positive cyclical change of +3.5% compared to the previous month (July 2021).

In view of the anomalous values in electricity consumption recorded from March 2020 onwards due to the implementation of anti-Covid measures, Terna deemed it appropriate to conduct an additional statistical analysis also for this month and using 2019 as a benchmark. According to data from Terna, the value of electricity demand in August 2021 grew by 2.4% compared to August 2019 (in adjusted terms it is equal to +1.7%): this is the most significant positive change for the entire period of the pandemic. Figures for the first eight months in 2021 are down by 1.5% compared to the same period in 2019 (-1.2% 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/en

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