making it possible, for first time in Europe, to import liquefied natural gas from Qatar.
Edison is also involved in the development of two new pipelines: the Galsi pipeline, which will connect Algeria and Italy, and the IGI pipeline, which will link Italy and Greece.
The latter will provide access, through Turkey, to the substantial reserves in the Caspian Sea Basin. Both projects have been classified as being of priority interest by the European Union, thus validating the wisdom of Edison’s strategic vision.
Edison has always followed sound practices of social responsibility, which are now evolving into more structural and formal policies. Through its Code of Ethics, its Sustainability Report (now in its fourth edition), the definition of its Corporate Values, the decision to join the Global Compact and the adoption of formal CSR policies and objectives, Edison has confirmed its commitment to behave responsibly toward its shareholders, its
employees, its customers, its partners and the communities in which it operates. In 2006, for example, we more than doubled our support for local communities, sponsoring cultural, sports, environmental and educational programs.
In the future, we will continue to follow this path with commitment and determination in pursuit of the primary goals of continuing to build balanced and lasting relationships with the communities in which it operates, both in Italy and abroad; improve the quality of relations within the Company; and consolidate the position of excellence achieved in environmental performance.
Giuliano Zuccoli
Chairman
Umberto Quadrino
Chief Executive Officer
WHO WE ARE.
EDISON TODAY
Edison is one of Italy’s top energy companies, with operations in the procurement, production and distribution of electric power and natural gas. At December 31, 2006, its electric power operations had an installed capacity of 11,686 MW, counting Edison’s share of Edipower’s output (3,513 MW at 50% consolidation). Edison has been a key player in the deregulated electric power and natural gas markets since their inception in the early 1990s. Today, Edison’s market share is 20.8% for the overall electric power market (it rises to 22.4% for the deregulated market) and 15.7% for for the natural gas market.
Facilities and Infrastructures that Serve Italy
Energy production is provided by the following facilities:
  • 36 thermoelectric power plants, including 32 cogenerating, combined-cycle facilities that are fueled with natural gas, 2 combined-cycle units that burn steel-mill gases and 2 conventional power plants, for a total installed capacity of 9,590 MW;
  • 42 hydroelectric power plants with an installed capacity of 1,837 MW;
  • 24 commissioned wind farms with an installed capacity of about 260 MW (15% of Italy’s total), comprising 451 wind turbines located in 7 different regions, mostly in central and southern Italy.
Edison’s hydrocarbon operations include the following:
  • 61 concessions and exploration permits in Italy and 12 concessions and exploration permits outside Italy for exploration and production of natural gas and crude oil in Norway (5 blocks), Croatia, Egypt, Ivory Coast, Algeria and Senegal;
  • Hydrocarbon reserves of 30 billion m3;
  • 2 storage centers in Italy (Collalto and Cellino), plus development of a new location in San Potito-Cotignola, for a total capacity of 1 billion standard m3;
  • Over 3,200 Km of low- and medium-pressure gas pipelines for distribution to consumers in Italy.
Main Achievements of 2006
In 2006, the Group completed a number of projects and made significant progress in many areas:
  • Completion of the Torviscosa power plant, with startup of the steam turbine in May.
  • Programs to optimize the Candela and Altomonte power plants and completed the Torviscosa facility. The high levels of reliability achieved enabled these facilities to enter the deregulated and dispatching services market.
  • Progress in the construction of a new 800-MW power plant in Simeri Crichi (CZ), which is scheduled to start production in 2007.
  • Commissioning of 16-MW wind farm in Ripabottoni (Campobasso) and completion of wind farms in Faeto (FG), Volturino (FG) and Sella di Conza (SA).
  • Passed the 50%-completion mark in the construction of the “Isola di Porto Levante” LNG regasification terminal in the Adriatic Sea. This facility, which will have a capacity of 8 billion cubic meters per year, is being built jointly with ExxonMobil and Qatar Petroleum and is expected to become operational in the second half of 2008.
  • Reached 30% completion of the Cavarzere-Minerbio gas pipeline.
  • Further progress in hydrocarbon exploration and in developing hydrocarbon production fields in Italy and abroad (Croatia, Ivory Coast, Senegal, Algeria, Egypt, Libya and Qatar) both as operator and as a participant with other partners.
  • New gas discovery in the Reggane District in Algeria.
  • Signature of two major commercial agreements with Sonatrach (the Algerian state oil company) for the supply of up to 4 billion