INVEST IN ITALY:
Right Time, Right Place
RENEWABLE ENERGY &ENERGY EFFICIENCY
July 2018

ItalyThe Perfect Platform for
Renewable Energy and Energy Efficiency
July 20182

KEY FACTS

3rd largest economy inthe Eurozone

Italy has among thelowest labour costs in
Western Europe

Italy is open to
Renewable energy andEnergy efficiency

Italy has alarge & skilledworkforce

Competitive location
for investment.
Cheaper than USA andmany Western
European competitors

3

Labour cost
160,0140,0

1st120,0

between the European
leading economies

100,080,060,040,020,00,0Source: Conference Board, International Labor Comparisons (2017 – data 2015)

4

ITALY IS BACK
Economic Outlook
GDP growth of 1.5% in2017 is forecast for
1.4% for 2018

Investors’ confidenceindex (2017) grows: +3
than 2016.

Unemployment rate
fell by 0,8% between
2016/2017

Exports increased by
7.5% between August
2016/2017

Italy ranks 13th in 2016
for FDI attractiveness,+5 than in 2015

Italy is the 8th
economy in the world,based on strong
export5

ITALY IS BACKThe Italian Government is successfully promoting a number of reforms that are revitalizing the Italian economy.

Labour Regulation Reform
The "Jobs Act", i.e. the 2015 labour market reform, is aimed at making the Italian work
environment more aligned to the flexibility that is needed in today's economic global
landscape with the urgency of a reinforced attractiveness of the country.
The Jobs Act’s key points are:•deregulation of dismissal regime (i.e. indemnity for wrongful dismissal in lieu ofthe reinstatement)•

deregulation of fixed-term contracts•

significant tax/social security contribution breaks for employers that offerpermanent job contracts•

promotion of firm-level collective bargaining•job seekers re-allocation by improving private and public labour market institutions❖ New incentives for hiring young workers have been introduced since 20176

ITALY IS BACKCorporate Taxation ReformIn the last years the Italian Parliament approved new legislation, including tax incentives, specifically aimed
at making Italy an attractive location for investment in manufacturing and R&D.
Among those specific tax incentives, the following are particularly relevant:•Patent box– a 5 year-elective regime will grant a partial tax exemption on income derived from qualifying intangible assets(patents, know-how, trademarks) as long as the Italian company performs R&D activities•

New R&D tax credit– enhanced for 2015-2019, with the elimination of any access limitation based on turnover and a doubled cap
amount (from 2.5M to 5M euro per year)•

Tax credits/incentives for the purchase of machinery & industrial equipment•

Full deductibility from the IRAP (regional tax) of labour cost for employees hired on a permanent basis

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ITALY IS BACKCorporate Taxation Reform
Other tax incentives are:
The “Destination Italy” Decree•

created a specific and dedicated desk of the Revenue Agency (Agenzia delle Entrate) in order tohelp and provide information to foreign investors, and•enhanced the tax ruling procedures, by extending the validity period of the preventive rulings
from 3 to 5 years and including also the existence of Italian permanent establishments of foreigncompanies

8Renewable energy &Energy efficiency

9

COMPETITIVE ADVANTAGES✓ Excellent positioning of Italy in Europe and long experience in the field ofrenewable energy and energy efficiency✓ National and European policy promoting renewable energy and energy efficiency

StrongPoints✓ Growing interest and attention payed from customers and companies towards
renewable energy and energy efficiency✓ Advantageous geographic position and availability of natural resources (e.g. highsun exposure)✓ Presence of specialized companies and global players✓ Presence of clusters and technological districts✓ Presence of top Universities, competitive and skilled workforce✓ Excellence in R&D and innovation✓ Competitive labour cost10

ITALY PERFORMANCE IN EUROPEItaly has the highest percentage of Renewable Energy in the Energy Mix
COUNTRY

PHOTOVOLTAIC

WIND

HYDROPOWER

BIOMASSGEOTHERMALOILCARBONGAS

Source: Renewable Energy Report 2018. Il futuro delle rinnovabili in Italia. Energy & Strategy – Politecnico di Milano, may 2018

NUCLEAR11

RENEWABLE ENERGY IN ITALY
Renewable energy installed capacity in Italy has grown in recent years
Renewable energy: installed capacity in Italy 2008-2017

Source: Renewable Energy Report 2018. Il futuro delle rinnovabili in Italia. Energy & Strategy – Politecnico di Milano, may 201812RENEWABLE ENERGY IN ITALY
New installed capacity in 2017: 900 MW
Renewable energy: new installed capacity in Italy - year 2017

PV: 410 MW
Wind: 360 MW
Hydropower: 95 MW
Biomass: 50 MW

Source: Renewable Energy Report 2018. Il futuro delle rinnovabili in Italia. Energy & Strategy – Politecnico di Milano, maggio 201813

Competitiveness in PHOTOVOLTAIC
Italy is amongst the top countries for PV cumulative capacity
Solar PV Global Capacity, by Country or Region, 2007-2017

Source: Renewables 2018. Ren2114

PV PLANTS DISTRIBUTION
PV plants distribution across Italian regions: number and total power

Source: Terna – Gaudi database. www.terna.it/it-it/sistemaelettrico/fontirinnovabili.aspx. June 2018.

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Competitiveness in WIND sector
Italy is amongst the top ten countries in the wind sector for cumulative
capacity…

Source: GWEC Wind 2017 Report

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WIND PLANTS DISTRIBUTIONWind plants distribution across Italian regions: number and total power

Source: Terna – Gaudi database. www.terna.it/it-it/sistemaelettrico/fontirinnovabili.aspx. June 2018.

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ENERGY EFFICIENCY IN ITALY
Investments in Energy Efficiency have increased rapidly in recent years
Energy Efficiency: total investments in Italy 2012-2017

Investments in 2017:
6,7 billions €- 65 % Home& Building- 33 % companies- 2 % Public Administration

Source: Energy Efficiency Report 2018. Il mercato dell’efficienza energetica in Italia dalla prospettiva degli utenti finali. Energy & Strategy – Politecnico diMilano, giugno 201818

ITALIAN CLUSTERS
National level:❖ National Energy Technological Cluster (coordinator: ENEA. Other members:
CNR, e-distribuzione, ENI, EnSiEL, Nuovo Pignone Tecnologie, RSE, Terna.
❖ Di.T.N.E. - Distretto Tecnologico Nazionale sull'Energia http://ditne.it
other Technological districts:

www.energycluster.it

Renewable
EnergyDistrict - Tuscany
http://dte-toscana.it

TechIndustrial District “The NewEnergy” – Apulia
www.lanuovaenergia.it

Energy and Environment TechnologicalDistrict – Trentino Alto Adige
www.dttn.it

Smart Power System High-tech Energy
Cluster - Campania
http://website.distrettosmartpower.it/

Green Building District – Apulia
www.despuglia.it

Green and Hi-Tech District ofMonza Brianza (Lombardy)
www.distrettohtmb.it

Energy and Green Building
District - Sicily
www.distrettoenergia.eu

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NATIONAL ENERGY STRATEGY 2017
➢ reducing final energy consumption by a total of 10 Mtoe by 2030
➢ reaching a 28% share of renewables in total energy consumption by 2030,

Coretargets➢ and a 55% share of renewables in electricity consumption by 2030
➢ strengthening supply security; narrowing the energy price gap➢ furthering sustainable public mobility and eco-friendly fuels➢ phasing out the use of coal in electricity generation by 2025

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ITALY’S GOT TALENT
Abundant and Skilled Workforce

Mainstay

Italy has some of the world’s best engineering
universities. Indeed, engineering is the 2nd highest
course for enrolment in the country – 225,619
currently studying an engineering discipline.1
The Technological Departments of the ItalianUniversities annually produce a pool of graduates withthe knowledge and industry experience to immediately
enter the work force.

The engineering sector currently
employs around 417,000 peoplein Italy.3

And much more.

Tertiary-educated 25-64 years old (2016) – Fields of study

Source: 1Ministry of Education 2AlmaLaurea 3La Repubblica; OECD ILibrary (http://www.oecd-ilibrary.org/education/education-at-a-glance-2017)

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TECH RESEARCH IN ITALY
National Research Centers…
www.cnr.it

www.enea.it

Research activities:➢ Energy efficiency➢ Renewable energy sources➢ Nuclear energy➢ Climate and the environment➢ Safety and health➢ New technologies➢ Electric system research

Research activities:➢ Biomedical sciences➢ Chemical sciences and materials technology➢ Earth system science and environmentaltechnologies➢ Engineering, ICT and technologies for energy andtransportation➢ Physical sciences and technologies of matter➢ Social sciences and humanities, cultural heritage➢ Biology, agriculture and food sciences…and much more
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COMPANIES ASSOCIATIONS

www.confindustriaenergia.org

www.elettricitafutura.it

www.anev.org

www.utilitalia.it

www.assistal.it

http://anienergia.anie.it

www.fiper.it

http://anierinnovabili.anie.it

www.anisgea.org

www.assoesco.org

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SOME ITALIAN BIG PLAYERS
Enel

Energycompanies

www.enel.it

Enel Green Powerwww.enelgreenpower.com

e-distribuzione

www.e-distribuzione.it

Eni

www.eni.com

Terna

www.terna.it

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Italian Trade Agency
Via Liszt, 2100144 Roma
www.ice.it
fdi@ice.it

Thank you foryour attention