Annual Report 2012 EUROPE BELGIUM BULGARIA ... - Duferco

Energy
Trading Operations
Sales of Electricity and Gas
Over the last year Duferco has
experienced sustained trading
activity in power and gas.
With the aim of expanding the
business, the team has also been
substantially increased, thanks
to Duferco’s acquisition of new
experienced resources in gas and
LNG trading.
Duferco Energia SpA’s electricity retail divisions have further expanded over
the past year, developing a commercial network of direct and indirect agents
throughout the national territory.
Customer base is represented essentially by medium and small-sized businesses
and households. As in the previous year, Duferco Energia SpA in 2012 continued
to supply energy and energy-management services to all the captive steel plants
belonging to the Duferco Group in Italy.
Such a structure is expected
to gradually increase its trading
volumes and its geographical reach,
expanding over several European
markets and beyond.
In doing so Duferco will play a
central role in the management of
the power assets described in this
section.
Photovoltaic Power
The Italian photovoltaic sector, supported
by the state incentive plan known as
“Quarto Conto Energia”, suffered a
setback in 2012 when the regulator
announced that, with the aim of reducing
the cost of green energy subsidies passed
on to consumers, it would replace the
existing scheme with a new and less
attractive incentive plan.
Naturally, Duferco, in line with other market
players, slowed down its pipeline, awaiting
the publication of the new incentives
decree (“Quinto Conto Energia”). Despite
such market uncertainties, however, the
Group was able to complete a number of
photovoltaic plants specifically designed
to profit from premium tariffs granted
only to solar systems that can also act as
the roofs of buildings. Such plants were
installed in areas not previously occupied
by Duferco’s Italian steel plants located
in Giammoro (Sicily) and San Giovanni
Valdarno (Central Italy).
Finally, two small plants were designed
and installed to serve also as roofs of
storage buildings used for agricultural
activities.
The total installed capacity at year-end is
over 13 MW for an aggregate of around
15 GWh/year production, eligible for
incentives. The corresponding overall
investment has been approximately 34
million Euro. With the newly-introduced
and much less attractive incentive
scheme, Duferco will evaluate how to
adapt its strategy to the current market.
44 | Duferco Annual Report 2012