Business sectors

 

 

⁽¹⁾ The figure also includes the quantities treated by the companies of the former Unieco Environment Division, which are reported separately in this document (see page 22 of the “Sustainability Report”).

 

Production of electricity and thermal energy

Electricity produced by plants fuelled by eco-friendly sources (renewable or high-efficiency cogeneration), which account for 70% of the Group’s plant portfolio, accounts for more than 73% of all production.

Iren has 95 photovoltaic plants, which produced 21,076 MWh of electricity in 2020.

 

Market

The Group operates in the sale of electricity, gas and heat for district heating, and of extra-commodity services and products, in particular for energy efficiency. It is present throughout Italy, with a greater concentration of customers in the central-northern area. The main sources available are the Group’s production plants.

Sale of natural gas

Sale of electricity

Volumes sold to protected market customers, mainly distributed in Turin, Parma and Vercelli where the Group also acts as the protected market service operator, came to 372 GWh. In 2020, 326.3 GWh of certified green energy was sold.

Sale of heat for district heating

Through its own co-generation and transport networks, the Group offers the service of district heating to Turin, Nichelino, Moncalieri, Beinasco, Collegno, Grugliasco, Rivoli, Reggio Emilia, Parma, Piacenza and Genoa. With district heating, customers help to protect the environment with low running costs and greater reliability and safety compared to traditional heating plants.

Marketing of securities

In 2020, just over 3.2 million CO₂ allowances (EUA) were purchased in order to meet the obligations provided for in the Emissions Trading Scheme (ETS) legislation related to emissions generated by Iren Group plants. Furthermore, over 28,084 Energy Efficiency Certificates (EEC) were also purchased at the average price of 259.71 Euro/EEC in order to meet the annulment obligations provided annually for the distributor Ireti.

 

Gas distribution

The distribution service, managed in 105 municipalities, guarantees the withdrawal of natural gas from Snam Rete Gas pipelines and its transportation through local gas pipeline networks for delivery to end users. Iren Group also manages the distribution and sale of LPG, particularly in the province of Reggio Emilia and in the province of Genoa, via 14 and 7 storage plants respectively, located in various towns within the municipalities that are still not reached by the natural gas network. The LPG distribution activity is closely connected to the gradual “methanisation” of the area.

 

Electricity distribution

In Turin and Parma, the activities concerning the distribution of electricity are carried out by the company Ireti, while distribution in Vercelli is assigned to ASM Vercelli.

 

District heating

⁽¹⁾ Estimated data

The Turin district heating network is the most extensive in Italy. In 2020, the development projects outlined in the Business Plan continued (for more information, see page 87 of the “Sustainability Report”).

 

Integrated water service

The integrated water service, which includes the procurement and distribution of drinking water, management of the sewerage systems and water treatment activities, is managed in the following provinces (in some areas only water network management): La Spezia, Genoa, Imperia, Savona, Parma, Piacenza, Reggio Emilia, Asti, Cuneo, Vercelli and Mantua.

 

Environmental services

The Group manages environmental health services in the provinces of Piacenza, Parma, Reggio Emilia, La Spezia, Vercelli and in the city of Turin. Through the company San Germano, as the contractor, it provides the waste collection service in several areas of Piedmont, Liguria, Lombardy and Sardinia.

⁽¹⁾ The figure does not include the waste treated by the companies of the former Unieco Environment Division, which is shown separately in the column opposite.

Since 2020, with the acquisition of I.Blu, three plastic recovery and processing plants located in Veneto, Friuli Venezia-Giulia and Emilia-Romagna have entered the Group’s perimeter.

The environmental services include the collection and sending for recovery or disposal of solid urban waste or similar and non-hazardous special waste, as well as its transportation to plants belonging to the Group or third parties.

 

Smart solutions

The Group, bolstered by its technological expertise, operates through Iren Smart Solutions in the following sectors:

• energy efficiency of public and private buildings;
• consultancy and monitoring of energy saving;
• global service (integrated management of electrical and technological plants of complex property assets);
• photovoltaic and thermal energy production systems;
• artistic and public street lighting. The management concerns the cities of Turin, Alba, Arborio, Asti, Vercelli, Moncucco T.se, Fidenza, Rivergaro, Fiorenzuola D’Arda, Biella and other municipalities in the Biella area. In these areas, the Group has outlined a structured plan to replace the traditional bulbs with new LED devices that guarantee a reduction in electricity consumption and urban light pollution of over 50%.

In Turin, the Group also manages the city’s traffic lights.

Furthermore, Iren Smart Solutions (ESCO, UNI 11352, UNI CEI EN ISO 50001 and F-gas certified) plans, funds, installs and provides a full management service for systems and plants which enable a reduction in energy consumption and generate concrete and long-lasting economic advantages, proposing innovative technological and contractual solutions to maximise the advantages to the customer.

 

Other services

he Group’s telecommunications network extends over the Turin area and from the ridge of the Susa Valley to Susa. In Turin, the fibre optic network extends for almost 200 km and connects over 400 customer sites, including the Group’s main sites where it is used, specifically, to monitor and remotely control the electricity distribution, district heating, water and public street lighting networks, and for the data collection system for electricity meters and apartment buildings with district heating. Through the Group’s network, various passage points for restricted traffic areas (ZTL), traffic light regulators and remote control of the water network are also managed. The network reaches Genoa, Parma, Piacenza and Reggio Emilia, through a redundant 10 Gbps infrastructure dedicated to the Group. In 2020, a 10Gbps connection to Frankfurt was also built at the data centres where the Cloud services of the main operators are provided. The network is completed with interconnections to mobile operators to acquire traffic via 2G/3G/4G networks from devices installed in the region.

 

Companies reported separately

Former Unieco Environment Division

As of 1 November 2020, Iren Group acquired 21 companies from the former Unieco Environment Division (highlighted in Iren Group structure as at 31 December 2020 on page 15 of the “Sustainability Report”). Given the acquisition’s timing, which did not allow for a structured collection of information, these companies are presented briefly and separately in this report and will be consolidated in the Sustainability Report for FY 2021. The data and information refer to the consolidation period (1 November - 31 December 2020) and analyse 20 consolidated companies and one investee company (ASA – Azienda Servizi Ambientali ScpA), which is relevant for sustainability dimensions (see page 25 of the “Sustainability Report”).

Activities managed

The 20 Companies operate in the recovery and disposal of urban and special waste in various Italian regions: Piedmont, Emilia-Romagna, Marche, Tuscany and Puglia.

One of these Companies’ distinctive features is their complete control of the environmental supply chain – with a targeted focus on the plant components with the highest added value – from waste collection, storage/treatment, intermediation and final disposal, guaranteeing a robust industrial integration between the various phases. In addition, the Company has consolidated experience in the design of treatment plants, as well as in the provision of technical services to support plant optimisation and site remediation.

The sectorial and geographic location established the grounds for the acquisition transaction carried out by Iren Group, which, in this way, confirms its strategy of strengthening its positioning on a national scale in the waste management sector.

The new companies consolidated by Iren Group manage a total of 10 plants for the storage, recovery, treatment and disposal of urban and special waste and 2 landfills. In the final months of 2020, the Companies treated a total of approximately 190,000 tons of waste, of which 55% was special waste and 45% urban waste. Of these wastes, about 72% were treated in the storage and disposal chain and the remaining portion in the intermediation chain, i.e. on behalf of third-party companies that do not acquire the material availability of waste.

The operating and reporting Companies are as follows:

• A.M.A. manages a waste treatment plant with adjoining landfill in the province of Cuneo;
• Energy Side offers energy consulting aimed at identifying savings opportunities for small, medium and large enterprises;
• Gheo Suolo e Ambiente deals with disposal, recovery and intermediation of waste in the Reggio Emilia area;
• Manduriambiente has built and now manages a platform for the treatment and disposal of unsorted urban waste (selection, biostabilisation and landfill) in the Taranto area;
• Picena Depur, operating in the Marche region, carries out treatment activities through biological treatment of sewage;
• Produrre Pulito, operating in the Florence area, manages special hazardous and non-hazardous waste of different kinds from production activities and intermediaries;
• Scarlino Energia, based in the Grosseto area, produces electricity from the combustion of special non-hazardous waste and manages the treatment of liquid waste;
• Sereco Piemonte operates a storage and treatment plant for hazardous and non-hazardous waste in the Turin area;
• STA is active in the intermediation of special non-hazardous waste;
• TB manages a mechanical-biological treatment plant (MBT) for urban waste from the Arezzo area;
• Uniproject operates a non-hazardous liquid waste treatment plant in the province of Ascoli Piceno;
• Unirecuperi is active in the intermediation of special waste, in environmental remediation and protection works and the transfer, treatment and recovery of special non-hazardous waste through a storage, sorting and treatment platform in the Ferrara area;
• Uniservizi manages the collection and sending for disposal of civil waste.

Scarlino Holding, STA Partecipazioni, UCH Holding and UHA, on the other hand, are industrial and/or financial holding companies; Scarlino Immobiliare is a real estate company, while Biometano and Borgo Ambiente are currently inactive.

Environmental dimension

The impacts considered significant concerning the activities carried out by these companies are mainly related to the energy consumption of the plants (electricity and natural gas), the use of water resources and the waste produced by the treatment processes (mainly leachate). The figures referring to reporting period are summarised below:

In addition, biogas is extracted from the two landfills managed for electricity production, which, in the last two months of 2020, amounted to 971 MWh.

Most companies have certifications related to the environmental management of activities and quality, as shown in the table below.

Social dimension

The newly consolidated companies’ workforce consisted of 200 employees as at 31/12/2020, with a female presence of 22.5%.

In the two months November-December 2020 in the companies that became part of Iren Group, there were no work-related accidents.

The effects produced by the companies on the supply chain are significant: since November 2020, purchase orders have been issued for a total of approximately 17.2 million Euro. There are 9 social cooperatives among suppliers.

Governance aspects

The companies that have joined Iren Group mainly adopt a traditional type of corporate governance system. The Boards of Directors consist of 59 members, 10 of whom are women.

 

Companies outside the reporting boundary

B.I. Energia

B.I. Energia S.r.l. is the investee of Iren Energia (47.5%) and Consorzio di Bonifica dell’Emilia Centrale [Central Emilia Conservation Consortium] (52.5%), which manages the flowing water hydroelectric plant on the river Secchia, in San Michele dei Mucchietti (Modena), which uses the drop of an existing barrier to produce electricity.

The 1.8 MW plant became operational in August 2017 and will benefit from the all-inclusive tariff for 20 years, pursuant to the Italian Ministerial Decree of 06/07/2012. During the last two months of 2020, the plant was not operational due to extraordinary maintenance.

Fratello Sole Energie Solidali

Fratello Sole Energie Solidali is a social non-profit enterprise founded in 2018 by Iren Energia (40%) and Fratello Sole (60%) and operates in support of charitable and socially useful entities in the field of energy costs savings. It provides management and energy efficiency services to the real estate complexes of its 11 founding members, comprising over 2,000 buildings (1,000 in 2019).

In 2020, new members joined Fratello Sole, including the Cantiere Sociale Rete Cauto linked to Caritas Brescia, and Iren will formalise new memberships in the early months of 2021.

Fratello Sole Energie Solidali is responsible for planning and implementing energy efficiency initiatives through its technological partner Iren Smart Solutions. Furthermore, the Company can develop e-mobility project for its customers.

In 2020, the Company achieved an overall savings of 105.7 MWh, thanks to the refurbishment of two thermal power stations serving as many buildings and started new works that will lead to an overall energy savings of more than 315 MWh/year.

Valle Dora Energia

Valle Dora Energia S.r.l., a subsidiary of the Municipalities of Chiomonte, Salbertrand, Exilles and Susa and an investee of Iren Energia (49%), was established to develop the redevelopment projects for the hydroelectric plants at Chiomonte and Susa which, in 2016, were admitted to the rankings by the GSE (Gestore dei Servizi Energetici) for incentives on the energy produced. Keeping these plants in operation also ensures important functions of public utility for the local area (protecting irrigation easements, hydro-geological protection and fire prevention service). The total output of the plants is 16.8 MWe (7.6 MWe for the Susa plant and 9.2 MWe for the Chiomonte plant).

In 2020, there was a significant increase in production due to the entry into production of the two plants downstream of the upgrading work.

Nove

Nove S.p.A. – owned by Municipality of Grugliasco (51%) and Iren Energia S.p.A. (49%) – manages district heating customers in the city of Grugliasco. The operational management of the Company and the district heating network is entrusted, through a service agreement, to Iren Energia.

Acquaenna

Acquaenna S.C.p.A., owned by Ireti (48.5%), manages the integrated water service in the optimal territorial area of Enna (excluding the municipality of Barrafranca). The Company operates across all stages of the water cycle (catchments, supply, distribution, sewage and treatment), implementing the Area Plan approved by the Mayors’ Assembly, planning and making investments and testing with new technological solutions. Acquaenna implements a Quality System certified in accordance with ISO 9001.

AIGA

AIGA S.p.A. is the subsidiary of Municipality of Ventimiglia (51%) and investee of Ireti (49%), which managed the integrated water service in Ventimiglia, for a catchment area of approximately 27,000 inhabitants, until the end of 2021 when the area’s market operator took over.

AIGA, with its 10 employees, manages 150 km of water networks, 90 km of sewerage systems and a treatment plant. In 2020, the water sold was about 2 million m³.

AMAT

AMAT S.p.A. is the company owned by the Municipality of Imperia (52%) and an investee of Ireti (48%), which manages the integrated water service in Imperia and in 4 municipalities of the province, for a catchment area of about 47,000 inhabitants. AMAT manages, with its 47 employees, 326 km of water networks, 240 km of sewerage systems and a treatment plant.

In 2020, water sold was approximately 4.4 million m³. The Company pays particular attention to monitoring environmental impacts by systematically checking discharges, ascertaining leaks and surveying the network for proper sizing.

AM.TER.

AM.TER. S.p.A. – established by the Municipalities of Campo Ligure, Cogoleto, Masone, Mele and Rossiglione together with Iren Acqua (49%) – in the west of the Province of Genoa manages the integrated water service in the areas of the member municipalities and the Municipalities of Arenzano and Tiglieto.

The supply sources consist of 103 sources, 13 rivers and 3 wells.

The water is treated in 9 treatment plants and 16 disinfection plants, distributed throughout the region. The municipal treatment plant of Rossiglione deals with the final discharge of the sewerage systems of the Municipalities of Campo Ligure and Masone.

AM.TER. adopts an integrated Quality, Safety and Environmental management system, in accordance with ISO 9001, ISO 45001 and ISO 14001.

ASA

ASA S.p.A. is an investee of the Municipalities of the provinces of Livorno, Pisa and Siena and Ireti (40%) that manages the integrated water service in five regional sub-districts: North-West (main municipality Livorno), Alta Val di Cecina (main municipality Volterra), Bassa Val di Cecina (main municipalities Cecina and Rosignano M.), Val di Cornia (main municipality Piombino) and Isola d’Elba (Elba Island). The Company also manages gas distribution in Livorno, Collesalvetti, Rosignano Marittimo, Castagneto Carducci and San Vincenzo. ASA is ISO 9001 certified.

A.S.A. AZIENDA SERVIZI AMBIENTALI

The company ASA S.C.p.A., the investee of Unirecuperi S.r.l. (49%), manages the design and construction of plants for the disposal of both urban and special hazardous and non-hazardous waste, the organisation and management, directly and indirectly, of plants for the disposal of waste produced by third parties and the remediation of polluted sites and is the manager of the landfill for non-hazardous waste located in the Municipality of Castel Maggiore (BO). In 2020, the ASA landfill received no waste for disposal. ASA implements a Quality System certified in accordance with ISO 14001, ISO 9001 and OHSAS 18001.

GAIA

GAIA S.p.A., the investee of Iren Ambiente (45%), manages waste treatment, recovery and disposal plants in the province of Asti. GAIA’s activities are spread across the entire province of Asti, in a catchment area of approximately 208,100 residents, with a structured plant system: 12 collection centres for citizens to dispose of sorted waste collection, a sorted waste reclamation plant, a plant for the mechanical-biological treatment of unsorted waste (Asti), a compost plant (San Damiano d’Asti) for the recovery of organic waste and a landfill for non-hazardous waste (Cerro Tanaro).

In recent years, with the new collaborations in Piedmont, Valle d’Aosta, Liguria and Emilia Romagna, the volume of waste to be treated has exceeded the capacity of the plants.

To achieve economically sustainable development, GAIA has worked to adopt a transparent policy and to gradually integrate its Management System, improving it with Quality, Environment, Safety and Social Responsibility certifications. All of the sites managed by the Company are EMAS certified.

SETA

SETA S.p.A. is the contractor of the integrated urban waste collection service for Catchment Area 16 in the province of Turin. Operating in the waste collection and disposal sector, it is 51.15% controlled by a few municipalities in the Consortium of Catchment Area 16 (area to the north of Turin), both directly and indirectly through the consortium, and is an investee of Iren Ambiente (48.85%).

SETA also manages the controlled landfill called Chivasso 0 for the disposal of non-hazardous waste and 10 collection points spread across the territory, where users can dispose of the sorted waste sent for recovery.

SETA has adopted a Quality, Safety and Environmental management system certified in accordance with ISO 9001, ISO 45001 and ISO 914001.