A year of growth
capital investments
Electric Power Operations
In 2005, the Electric Power operations made capital expenditures for 511 million euros (of which 93 million euros represent the amount invested by Edipower).
The main projects carried out by the Hydroelectric Division, in addition to its usual incremental maintenance activities, included the replacement of a 4-MW turbine/alternator unit at the Colle power plant in the Meduna District, which will enable the power plant to earn green certificates, and an expansion of the Glorenza power plant, as a result of which the concession will be extended until 2031 pursuant to Law No. 529.
The capital expenditures of the Thermoelectric Division were used mainly to complete construction of a 400-MW plant in Candela (FG), which went on stream during the second half of the year, and of an 800-MW facility in Altomonte (CS), which has started prodution during the final quarter of the year. In addition, work continued on an 800-MW power plant in Torviscosa (UD), with the construction phase now 96% complete, and on another 800-MW facility in Simeri Crichi (CZ).
Capital expenditures in the area of wind power totaled 23 million euros. They were used mainly to complete the S. Bartolomeo Wind Farm (16 MW) in the municipality of Ripabottoni (CB), which went into service in December 2005, and to expand a wind farm in Faeto (CH) where 14 generators have already been installed. When the latter facility is completed, it will have a total of 20 generators with a combined capacity of 12 MW.
Edison's share of the total invested by Edipower amounted to 93 million euros. The main projects included final work on a new combined-cycle unit at the Piacenza power plant, which has completed the testing phase and began a trial run in December. Work at the Brindisi power plant focused on new coal handling logistics needed to resume production. In addition, construction of a new 800-MW power plant began in Turbigo and, in November 2005, job-site activity got under way on the partial rebuilding of generating units 1 and 2 (phase 1) of the Mese power plant. Overall, the Mese project is 60% complete.
Edison has launched a 4-billion-euro capital investment program that will increase its electric power generating capacity to 14,000 MW and its supply of natural gas
to 19 billion m3 by 2011.
Hydrocarbons
Capital Expenditures
Capital expenditures totaled 73 million euros in 2005, compared with 60 million euros in the previous year.
Activities in Italy included further development of the Naide field in the Adriatic, with startup of the platform on June 30, 2005. Other significant projects included development of the Candela deposit of low-grade gas, which will be used to fuel the power plant of the same name, and upgrades to the Rospo platform, which are required before the two new wells needed to improve on-site oil recovery can be drilled in 2006. The Group's gas storage operations completed the first phase of the expansion of the Collalto field in July 2005. Development of the Cavarzere-Minerbio gas pipeline, which will be connected to the regasification terminal, continued, with completion of the FEED in July 2005. The distribution operations were concerned mainly with new hookups and installing connection lines and decompression stations.
In the Rashid 2 field of the Rosetta concession (20% Edison) in Egypt, the P2 platform was completed and installed. Following the drilling and completion of four wells, the Rashid 2 field was brought gradually into production between April and August 2005. Subsequently, engineering work got under way for the development of two additional fields discovered in the same concession (Rosetta 3 and Rosetta North), which are expected to require the drilling of five new wells.