PROVISIONAL DATA ON OPERATION OF THE ITALIAN POWER SYSTEM

213 PROVISIONAL DATA ON OPERATION OF THE ITALIAN POWER SYSTEM

Terna manages electricity transmission in Italy and guarantees its safety, quality and low costs over time. The Company ensures equal access conditions to all grid users. It develops market activities and new business opportunities based on its experience and technical know-how acquired in managing complex systems. Terna creates value for its shareholders with an outstanding professional commitment, with a responsible approach towards the community and in respect of the environment. Table of Contents 1. Introduction... 3 2. Electricity Balance... 4 3. Electricity Demand... 6 4. Load Demand... 8 5. Weekly Maximum Value of Load and Energy... 1 6. Hydro Power Plants: Energy Capability and Reservoirs... 11 7. Energy not Supplied... 12 8. Balance of Physical Exchanges of Electricity... 13 9. Physical Exchanges of Electricity between Italy and Neighbouring Countries... 14 1. Time Curves of Net Import/Export Balance... 15 11. Italian 38 kv Grid... 16 12. Legend... 17 All rights reserved. The data presented herein are the exclusive property of Terna and may not be used in whole or in part without prior permission of Terna and proper acknowledgement of the source.

Introduction Terna Rete Italia S.p.A. is the company responsible in Italy for electricity transmission and dispatching on the extra high voltage and high voltage power grid throughout the country. To guarantee service continuity and quality under safety conditions, Terna must collect, instant by instant, all the data on the status of the power system. By processing these data, indicators are then developed of the power system performance. The publication Provisional Data on Operation of the Italian Power System - 213 summarizes the figures. The most significant events included in the publication refer to the overall decreased electricity consumption in 213, equal to -3.4% compared to 212. In 213, electricity demand reached 317.1 billion kwh. 86.7% of this demand was covered by domestic production allocated for consumption and the remaining part (13.3%) by the balance between imports and exports with foreign countries which decreased by 2.2% compared to 212. The significant contribution to the national electricity demand from hydropower should be noted, which increased by 21.4% compared to 212. In 213, the highest electricity demand on the Italian electricity grid equaled 53,942 MW (-.3% compared to 212), recorded on July 26 at 12: noon. The following pages provide additional information on these and other aspects of the Italian power system s management and operation. 3

Italian Electricity Balance TWh (212 data between parentheses) Thermal production 57.6% (63.2%) 182.5 (27.3) Hydro production 16.6% (13.2%) 52.5 (43.3) Wind, photovoltaic and geothermal production 42.4 (37.2) Export 2.4 (2.7) Electricity consumed by pumping 13.3% (11.3%) Import 14.% (13.8%) 44.3 (45.4).7% (.7%) 2.2 (2.3) Total net production 277.4 (287.8).8% (.8%) 1% Electricity supplied (consumption + losses) 317.1 (328.2) 213/212 variation - 3.4 % (Excluding 29/2/212) - 3.1 % 4

Electricity Balance by Regional Area and Total (GWh) TURIN MILAN VENICE FLORENCE ROME NAPLES PALERMO CAGLIARI Total 213 212 %Var. Hydro production 1,866 1,795 17,699 2,284 6,263 3,648 42 54 52,515 43,257 21.4 Thermal production 24,48 31,128 17,411 2,538 19,458 41,395 17,875 1,243 182,528 27,327-12. Geothermal production 5,299 6 5,35 5,252 1. Wind production 163 24 1,121 8,492 3,8 1,826 14,886 13,333 11.6 Photovoltaic production 1,625 2,91 2,717 3,79 4,445 5,591 1,779 819 22,146 18,637 18.8 Total net production 37,134 44,14 37,827 31,44 31,293 59,126 23,154 13,428 277,38 287,86-3.6 Electricity consumed by pumping 481 616 33 28 81 568 45 177 2,389 2,689-11.2 Net production allocated for consumption 36,653 43,398 37,794 31,376 31,212 58,558 22,749 13,251 274,991 285,117-3.6 Import 13,996 21,889 6,813 1,633 44,331 45,47-2.4 Export 1,188 91 148 123 96 532 2,178 2,34-5.5 Net import/export balance 12,88 21,798 6,665-123 1,537-532 42,153 43,13-2.2 Balance of physical exchanges between regional areas - 18,192 3,498 1,14 17,86 13,11-12,233-1,627-3,457 Electricity supplied 31,269 68,694 45,563 49,59 44,313 47,862 21,122 9,262 317,144 328,22-3.4 Year 212 33,91 68,73 47,9 49,764 47,199 48,824 21,649 11,81 % variation - 7.8. - 3.2-1.4-6.1-2. - 2.4-16.4 N.B. Net import/export balance excluding the Republic of San Marino and the Vatican City. During the year, the electricity demand reached 317.1 billion kwh, decreasing by 3.4% compared to 212, with a negative monthly demand variation throughout 213. The net domestic production allocated for consumption registered a 3.6% decrease. The variation in the balance of physical exchanges of electricity with foreign countries was negative compared to the previous year (-2.2%). In particular, production from renewable sources significantly increased: geothermal, wind power and photovoltaic energy (+13.7%). Hydroelectric production registered an increase (+21.4%), while thermoelectric production dropped (-12.%). Electricity imports from foreign countries registered a decrease equal to 2.4%, as did exports (-5.5%). 5

Electricity Demand on the Italian Grid Trend and Coverage TWh 35 325 33 337 34 339 32 33 335 328 317 3 25 2 15 1 5 24 25 26 27 28 29 21 211 212 213 Net import/export balance Net production allocated for consumption Monthly and Cyclical Percentage Variations % 1. 8. 6. 4. 2.. -2. J F M A M J J A S O N J F M A M J J A S O N J F M A M J J A S O N -4. -6. -8. -1. 211/21 212/211 213/212 Monthly Cyclical (referring to the last 12 months) 6

Percentage Variations by Regional Area % -2. -4. -6. -8. -1. -12. -14. -16. -18. TURIN MILAN VENICE FLORENCE ROME NAPLES PALERMO CAGLIARI 212/211 213/212 Components (%) of Electricity Supply Side Wind, photovoltaic and geothermal 13.3 % Hydro * 16.6 % Thermal * 56.8 % Net import/export balance 13.3 % * % net of electricity consumed by auxiliary services of the production and by pumping 7

Hourly Load Demand on the Italian Grid Load Curve on Maximum and Minimum Peak Days GW GW 6 56.4 16-7-21 6 56.5 13-7-211 5 5 4 4 3 3 2 2.8 6-4-21 2 21.5 25-4-211 1 1 hour 6 12 18 24 Max 21 Min 21 hour 6 12 18 24 Max 211 Min 211 GW 6 54.1 1-7-212 GW 6 53.9 26-7-213 5 5 4 4 3 3 2 21. 26-12-212 2 19.5 26-12-213 1 1 hour 6 12 18 24 hour 6 12 18 24 Max 212 Min 212 Max 213 Min 213 N.B. : Data are net of electricity consumed by auxiliary services and by pumping. In 213, the highest electricity demand on the national power system was equal to 53,942 MW, recorded on July 26 at 12: noon, lower by.3% compared to the 212 peak (54,113 MW, July 1, 212). During the year, the monthly peak figures were essentially lower than those of the same months in the previous year, with some exceptions. 8

GW Peak Loads by Month 6 5 52. 5.2 53. 49.9 48.5 48.3 46.8 45.3 45.3 44.6 51.9 52.1 54.1 53.9 49.5 5.6 48.2 49. 46.5 46.4 49. 52.1 52.8 51.5 4 3 2 1 212 213 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec GW 6 5 (*) Utilisation Curve of Hourly Load Demand 4 3 2 1 1 2 3 4 5 6 7 8 9 1 % GW 58 56 (*) 211 212 213 54 52 5 48 46 1 2 3 4 5 % N.B. : Data are net of electricity consumed by auxiliary services and by pumping. 9

Weekly Maximum Values of Load and Energy GW Weekly Maximum Values of Load 6 55 5 45 4 35 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 213 212 GWh Weekly Maximum Values of Energy 12 11 1 9 8 7 6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 213 212 The weekly load curve shows the maximum values of load and energy recorded on the Italian power grid in each of the 52 weeks of 213. The diagrams clearly show low demand values during the Easter holidays, August and year-end holidays. 1

Hydro Power Plants Energy Capability Factor 2. 1.8 Yearly Factor 1.21 (1.8 in 212) 1.6 1.4 1.2 1..8.6.4.2. J F M A M J J A S O N D Historical monthly maximum values from 195 to 212 Historical monthly minimum values from 195 to 212 213 212 % 1 Fullness Factor of Hydro Reservoirs at the end of Each Month 9 8 7 6 5 4 3 2 1 J F M A M J J A S O N D Historical monthly maximum values from 197 to 212 Historical monthly minimum values from 197 to 212 213 212 The monthly hydroelectric capability factors show an increase in percentages for all of 213, with the only exception in October and December. In particular, in the first months of the year, these factors registered a significant increase. In March, in particular, the monthly index registered its annual peak with 1.3 (1.25 in December 212). The yearly energy capability factor of 1.21 (ratio of the capability in the current year to the average multi-year reference value) was higher compared to the same value in the previous year (1.8 in 212). 11

Energy not Supplied (MWh) on the EHV-HV-MV* Grid Regional Area Year 213 Year 212 Turin 154 78 Milan 278 32 Venice 897 158 Florence 94 198 Rome 464 1.996 Naples 555 1.57 Palermo 825 888 Cagliari 9 54 Total 3,357 4,461 MWh 213 3,5 3, 3,357 Monthly Progressive 2,5 2,331 2, 1,5 1,272 1,381 1, 5 12 J 284 F 182 428 486 144 58 M A 631 145 M 81 17 J 885 942 84 57 J A 33 S 19 O 95 1,26 N D Months MWh 212 5, 4,5 4,412 4,461 Monthly Progressive 4, 3,5 3, 2,837 2,92 3,31 3,58 3,161 3,416 3,628 3,679 2,5 2, 2,146 2,79 1,5 1, 691 733 5 67 J F M 65 A 129 M 27 13 J J 255 212 A S 51 O N 49 D Months * MV network directly connected to the National Trasmission Grid. 12

Balance of Physical Exchanges of Electricity (GWh) Switzerland 1,483 Austria 457 1,474 45,563 5,182 Slovenia France 12,351 31,269 Turin 21,798 12,161 Milan 68,694 6,31 7,189 37 49,59 Venice Florence 3,835 123 44,313 France (Corsica) 381 Rome 13,86 3,76 47,862 532 Naples 1,537 Greece 9,262 Cagliari 1,627 Palermo 21,122 EXCHANGES DEMAND The balance of physical exchanges of electricity mainly shows the energy flows among the various areas of the Italian power system. In particular, it is necessary to note the high flows going from Lombardy towards central Italy. Electricity exports from Sicily to the mainland through the 38 kv connection, provide for the safe operation of Sicily s and Calabria s power systems. 13

Physical Exchanges of Electricity between Italy and Neighbouring Countries (GWh) Electricity imported to Italy from Electricity exported from Italy to Net import/export 212 France Switzerland Austria Slovenia Greece TOTAL France Switzerland Austria Slovenia Greece TOTAL balance January 1,368.2 2,453.2 89.9 36. 17.5 4,387.7 119.4 16.6 4.4 13.1 43.7 197.2 4,19.4 February 874.9 1,993.7 97.8 243.7 66.8 3,276.7 199.7 33.2.2 1.3 131.8 375.2 2,91.5 March 1,429.3 2,624.2 88.9 38.6 21.3 4,724.3 74.5 1.2.2 3.8 38.1 126.8 4,597.5 April 1,111.4 2,31.1 81.3 33.3 34.4 3,858.4 86.1 56.1 3.4 13.1 1.7 16.4 3,698. May 1,94.3 1,78.6 79.8 345.5 182.8 3,483. 54.9 121.5.8 8.9 4.5 19.7 3,292.3 June 1,23.4 1,914. 112.5 37.3 159.9 3,517. 86.6 126.2.2 6.4 12.2 231.6 3,285.5 July 767.8 2,8.8 119.3 236.8 218. 3,422.7 91.2 88..4 8.9 44.7 233.1 3,189.6 August 594.1 1,25.1 57.5 157.3 223.7 2,237.7 121.1 115.1 1.2 28.4 34.9 39.8 1,927.9 September 662.4 2,28. 19.8 34.2 26. 3,31.4 137. 13.8. 6.4 13.1 17.3 3,14.1 October 1,283.5 2,632.3 18.2 452. 193.3 4,669.3 68. 7.3. 3.3.5 79.2 4,59.1 November 1,273.2 2,54.8 113.1 419.7 33.7 4,614.5 67.3 13.8.3 3.4 1.2 86. 4,528.6 December 1,95.7 2,49.6 88.2 366. 36.4 3,95.9 12.2 27.9 3.4 1.3.2 144. 3,761.9 YEAR 12,578.2 25,297.3 1,146. 3,849.4 2,536.7 45,47.6 1,28. 629.9 23.4 116.3 326.7 2,34.3 43,13.4 213 Electricity imported to Italy from Electricity exported from Italy to Net import/export France Switzerland Austria Slovenia Greece TOTAL France Switzerland Austria Slovenia Greece TOTAL balance. January 1,152.2 2,3.3 149.5 524. 112.7 4,238.7 12.8 27.4. 4.9 2.1 137.2 4,11.5 February 1,194.2 2,334.9 166.8 463.9 267.9 4,427.7 97.8 1.9..9 1.2 11.8 4,316.9 March 926.7 1,918.1 168.4 459.1 318.9 3,791.2 78.2 4.9. 6.1. 125.2 3,666. April 836.2 1,56.3 137.5 47.2 261.9 3,23.1 48.8 128.3 3. 6.8 4.8 191.7 3,11.4 May 1,99.1 1,64.2 135.7 439.6 44.4 3,359. 45.7 223.2 2.9 8. 2. 281.8 3,77.2 June 1,139.4 1,554.9 112.9 472.1 191.6 3,47.9 61.1 183.3 2.2 6.9 6.7 26.2 3,21.7 July 821.8 2,198.8 12.2 458.2 75.4 3,674.4 61.2 151.3..8. 213.3 3,461.1 August 98.8 1,45.8 6.2 28.9 129.3 2,713. 6.3 182.1 6.7 61.7 3.1 313.9 2,399.1 September 925.8 1,526.4 71.4 331.8 15.7 2,961.1 52.8 29. 2. 15.3 11.7 11.8 2,85.3 October 1,489.6 2,389.9 118.3 48.1 72.3 4,55.2 54.8 28.2.7 1.9 8.2 12.8 4,447.4 November 1,83.4 2,339.1 139.2 569.8 12.6 4,144.1 69.3 33.9 1.3. 1.8 16.3 4,37.8 December 962.2 2,178.1 123. 494.8 39.7 3,797.8 11.2 53.9 1.2 4.8 53.8 223.9 3,573.9 YEAR 12,539.4 23,346.8 1,53.1 5,39.5 1,632.4 44,331.2 843. 1,92.4 2. 127.1 95.4 2,177.9 42,153.3 Physical Exchanges of Electricity between Italy and Neighbouring Countries from 1963 to 213 (GWh) 6, 5, 4, 3, 2, 1, 1963 1969 1975 1981 1987 1993 1999 23 213 Net import/export balance Export Import During 213, the balance of physical exchanges of electricity with foreign countries decreased. The actual value reached 42.2 billion kwh with a 2.2% decrease compared to the previous year. 14

Time Curves of Net Import/Export balance MW Day-time NTC values 9, 8, 7, 6, 5, 4, 3, 2, 1, -1, -2, -3, January February March April May June July August September October November December Net Transfer Capacity for imports from foreign countries (Net Transfer Capacity) MW Night-time NTC values 9, 8, 7, 6, 5, 4, 3, 2, 1, -1, -2, -3, January February March April May June July August September October November December Net Transfer Capacity for imports from foreign countries (Net Transfer Capacity) The limit value of the maximum transfer capacity for imports on the interconnected system with foreign countries (NTC) during the day (7:am-11:pm) is represented by the red broken line, while the same limit value at night (11:pm-12: midnight; :-6:am) is represented by the blue broken line. Specifically, the maximum transfer capacity in winter registered daily variations ranging between 8,435 MW and 7,62 MW. During the summer months (May-September 213 excluding August) the range was between 7,15 MW and 6,6 MW. In August, the range was between 5,6 MW and 3,83 MW. 15

Italian 38 kv Grid as of 31 December 213!!(!(! " UDINE OVEST " " CORDIGNANO REDIPUGLIA CAGNO PLANAIS PIANCAMUNO! MERCALLO SANDRIGO!( CISLAGO GORLAGO SALGAREDA NAVE VENEZIA NORD CASSANO!( FLERO CAMIN DOLO TURBIGO ST BAG GIO CHIARI DUGALE LONATO!( LEYNI NOGAROLE ROCCA VENAUS!( TAVAZZANO ST CREMONA " ADRIA SUD RONDISSONE MALEO!( OSTIGLIA ST SERMIDE ST PORTO TOLLE CASANOVA LA CASELLA ST CASTELNUOVO S. CARPI FOSSOLI PIOSSASCO VIGNOLE B. FERRARA FOCOMORTO PARMA VIGHEFFIO RUBIERA S.DAMASO COLUNGA MAGLIANO!( RAVENNA CANALA VADO STAZIONE FORLI ORAZIANA " SPEZIA STAZIONE " S.MARTINO IN XX MARGINONE CALENZANO FANO E.T. POGGIO A CAIANO TAVAR NU ZZ E CASELLINA CANDIA ACCIAIOLO S.BARBARA STAZIONE! PIAN DELLA SPERANZA SUVERETO ROSARA SF6 FIUMESANTO ] CODRONGIANOS IT TIRI VILLAVALLE S.GIACOMO TE VILLANOVA MONTALTO S.LUCIA ROMA NORD ROMA EST LARINO ROMA OVEST VALMONTONE ROMA SUD FOGGIA CEPRANO38 TROIA 38 ] 5 kvcc FOCE VERDE PRESENZANO ] LATINA NUC ANDRIA BENEVENTO 2 DELICETO GARIGLIANO ST BARI O PATRIA S.SOFIA BISACCIA 38 S.MARIA CAPUA V. MATERA BRINDISI TARANTO N2 MONTECORVINO CASTELLANETA 38 BRINDISI SUD ST LAINO GALATINA 4 kvcc ROSSANO TE SELARGIUS RUMIANCA CAGLIARI SUD MAIDA FEROLETO SCANDALE FACILITIES IMPIANTI ( $ " Stazione 38 kv substation 38 kv RTN (national transmission grid) Stazione Substation 38 not kv belonging non RTN to o national CP trasmission grid Customer Cabina Utente substation Thermal Centrale power termoelettrica plant Hydro Centrale power idroelettrica plant SO RGENTE PATERNO CHIARAMONTE GULFI RIZZICONI LINEE LINES 38 Linea kv 38 line kv (national RTN transmission grid) 38 Linea kv doppia double-circuit terna 38 line kv (national RTN transmission grid) 4 Linea kv > DC 4 line kvcc (national RTN in transmission cavo grid) 38 Linea kv 38 line kv (not non belonging RTN to national trasmission grid) 5 1 2 km 16

Legend The electricity supplied on the grid is the electricity to be injected into the grid for covering the net internal consumption. In the case of a national grid, it is equal to the sum of net electricity production and of electricity imported from foreign countries, after deducting the electricity consumed for pumping and exports to neighboring countries. The trend variation is the percentage change with respect to the same month or period in the previous year. The net electricity production of a group of generation plants in a given period of time, is the sum of the amounts of electricity injected into the grid. The electricity consumed for pumping is the electricity used for the sole purpose of pumping water and storing it for subsequent electricity generation. Regional Areas: consist in one or more neighboring regions and are grouped as follows: TURIN MILAN VENICE FLORENCE ROME NAPLES PALERMO CAGLIARI : Piemonte - Liguria - Valle d Aosta : Lombardia : Friuli Venezia Giulia - Veneto - Trentino Alto Adige : Emilia Romagna - Toscana : Lazio - Umbria - Abruzzo - Molise - Marche : Campania - Puglia - Basilicata - Calabria : Sicilia : Sardegna The hydro electric energy capability factor is the ratio of the energy capability in a given period and the mean energy capability in the same period. The energy capability of a group of power plants in a given period is the maximum amount of electricity that all inflows observed in the same period could generate under the most favorable conditions. Not supplied energy is energy that is not withdrawn by users connected to the EHV-HV-MV following an interruption with outage. 17

Increasing the service s efficiency and the Company s competitiveness. Providing services under concession and planning the electricity grid s development plan. Always enhancing the skills of its collaborators. Working in respect of the environment. Developing a Group profile both nationally and internationally.

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