ENERGY FOR THE FUTURE CONTENTS

EDISON: NEW CHALLENGES FOR THE FUTURE 3

E&P OPERATIONS 4 E&P OPERATIONS IN 6

E&P OPERATIONS IN THE MEDITERRANEAN BASIN 8 E&P IN EGYPT 10 E&P IN ALGERIA 10 E&P IN 11 E&P IN ISRAEL 11

E&P OPERATIONS IN THE WORLD 12 E&P IN NORWAY 14 E&P IN UK AND FALKLAND ISLANDS 16

INFRASTRUCTURES AND SUPPLY 18 STORAGE AND DISTRIBUTION 20 TRANSPORT 21

ELECTRIC POWER OPERATIONS 22 : A LEADING PLAYER IN ELECTRICITY MARKET 24

EDISON IN THE WORLD 26 ENERGY FOR THE FUTURE

E&P Division

EDISON: NEW CHALLENGES FOR THE FUTURE Edison is ’s oldest electric utility and one of the key players in Italy’s energy sector. For 130 years it has played a leading role in Italy’s industrial development. Today, Edison is ready to resume its growth path, consistent with its strategic mandate within the EDF Group.

Edison is active in its traditional electric power sector development such as the Dunkerque LNG terminal and is the most credible challenger of the former and the South Stream pipeline. monopolists. It also plays an increasingly important role in the hydrocarbon area, bolstered by growing The Company stands ready to seize international investments in exploration and production to increase growth opportunities, particularly in the oil and gas reserves and production. Mediterranean Basin.

In addition, Edison is promoting infrastructural projects E&P operations have grown, in the last decades, to import natural gas that will help Italy and Europe from being a niche Italian activity to becoming an to diversify sources. established international outfit. In the E&P sector, Edison’s task will be to develop the portfolio of In this mission Edison will be strengthened and assets both in Italy and abroad, widen the complemented by EDF’s ongoing infrastructure geographic imprint of the group.

2013 HIGHLIGHTS 369 121 47,700 MMBoe Permits and Concessions Boe/d Hydrocarbons Reserves (2P) Hydrocarbons Daily Production 15.7 22.5% 7. 7 Billion m3 Edison Gas Sales/ GW Gas Sales in Italy Total Italian Gas Demand Electric Installed Capacity 56.3 12,335 3,200 TWh Millions Euros Employees Electric Power Sales in Italy Sales Revenues 3 2 1,500,000 Gas Storage in Italy Pipelines in project Customers in Italy

3 E&P OPERATIONS Edison owns gas and crude oil reserves both in Italy and abroad. E&P activities are managed by Edison’s E&P Division. In Italy Edison is active in the exploration and production of natural gas and crude oil with 48 concessions and 10 exploration permits. Edison holds 63 licenses abroad.

4 5 E&P OPERATIONS IN ITALY

Since the early 50s Edison has always played a Vega, Sicily, and Rospo Mare, in the and leading role in the Italian energy sector with the non operated onshore field of Tresauro (Enimed). discoveries of major importance. The Italian activities In the past four years major investments have been are managed by the two districts of (Adriatic put in place to replace the two FSO vessels through offshore and Northern Italy) and Siracusa (Sicily which the oil is stored in order to apply the best channel). practices in the industry and comply with the latest In 2013 Edison produced in Italy 4,5 MBOE of which environmental regulations. 410 Msmc of gas and 1.9 MMbbl of oil . The bulk of In the coming years Edison will complete a significant the gas production came from the two major gas field investments plan in Italy with a dual focus: optimize of Daria and Clara, both operated by , whilst the oil and maximize oil production and develop new gas production, came from the operated offshore fields of resources.

OIL PROJECTS annual production of 1,5 platform to the Gela terminal. Clara NW Field. The field is Sicily Channel MMbbl. First gas is expected in 2018 located in the Adriatic Sea, Vega The authorization process with an initial flow rate of 4.6 48 offshore . Vega field is located in the is currently ongoing and the MMScm/day. Once The development plan for Sicilian channel, 20 km south final investment decision is developed, the project will Clara NW calls for the of Pozzallo (RG). In production expected by the beginning contribute 9.8 Bscm of gas installation of new unmanned since 1987 the field is of 2015. reserves (100%) to the JV. platform in 77 meters of water operated by Edison with a depth, the drilling of 4 wells 60% working interest (Eni GAS PROJECTS Adriatic Sea and the installation of 13 km is the partner with 40%). Sicily Channel Fauzia of sealine connections to The Vega cluster consists of Argo Cluster Edison holds a 40% working existing facilities. First gas is Vega A, the field currently in In the Sicilian channel another interest in the ENI operated expected in 2016 with an production, and the yet to Eni (Operator), Edison JV will Fauzia Field. The field is initial rate of 900 kScm/day. be developed Vega B field. proceed to the development located in the Adriatic Sea, The project will contribute Vega A was developed with of the Argo cluster. The 40 Km offshore Pesaro, in an 1.6 BScm of gas reserves 24 wells, a platform located project consists in the intensely developed area with (100%) to the JV. in 130 m water depth to development of two, already more than 10 platforms at a process 60.000 barrels of oil discovered, gas fields: Argo short distance. Clara South East per day and a floating and Cassiopea, located 25 The development plan for Edison holds a 49% working storage and offloading tanker km offshore the Sicilian coast. Fauzia calls for the installation interest in the ENI operated (Leonis) with a capacity of The development plan of new unmanned platform, Clara SE Field. The field is 110,000 tons to temporary consists in the drilling of two in 70 meters water depth, the located in the Adriatic Sea, store production. new wells to be completed drilling of 2 wells and the 48 offshore Ancona. The crude oil is transported subsea in 600-700 meters installation of 15 km of sealine The development plan for from the Leonis to refineries water depth and tied back connections to existing Clara SE calls for the by tankers shuttles. togheter with two existing facilities. installation of new unmanned In 2010 the partners started well to a new platform, The platform has been platform in 78 meters of considering a development “Prezioso K”, to be installed commissioned in September water, the drilling of 2 wells concept for Vega B and now in 45 meters water depth. 2014. Current production is and the installation of 4,1 km detailed studies are ongoing. The platform will host the 450 MSmc/day. The project of sealine connections to The plan currently consists in treatment and compression will contribute 1 Bscm of gas existing facilities. First gas is the construction of a new system and will be connected reserves (100%) to the JV. expected in Q1 2017 with an unmanned platform connected through a bridge to the initial rate of 650 kScm/day. to Vega A through a sealine existing Prezioso platform. Clara North West The project will contribute and drilling of new wells. First A new sealine will transport Edison holds a 49% working 841 MScm of gas reserves oil is expected in 2017 with gas production from the interest in the ENI operated (100%) to the JV.

6 FAUZIA (in project)

Falconara

Ancona

CLARA NW (in project) CLARA SE (in project) A D R I NAIDE A ROSPO C TIRRENIAN SEA ANEMONE T DARIA I ROSPO B REGINA ALBA MARINA FAUZIA C CLARA S ROSPO A CALIPSO E A SARAGO MARE

SAN MARCO EMMA

CARASSAI GROTTAMARE T GIOVANNA Y SQUALO SANTO STEFANO MARE R S. Giovanni Teatino ROSPO MARE R H PORTOCANNONE E N REGGENTE CANDELA I A N S E A ACCETTURA

PANDA Licata

Gela

CASSIOPEA PREZIOSO K (in project)

ARGO

Siracusa

Pozzallo VEGA-B (in project) Siracusa COMISO TRESAURO LEONIS

VEGA-A

HEADQUARTERS LOCAL OFFICE S GAS FIELDS I C I L N E L OIL FIELDS I A N C H A N

7 E&P OPERATIONS IN THE MEDITERRANEAN BASIN Edison’s E&P efforts date back to the 50’s and at the time were focused on Italy. At the end of the 80’s, the maturity of the Italian market led Edison to start operations abroad, beginning with Mediterranean Countries. Within the Mediterranean basin Edison still concentrate nowadays 100% of its producing assets.

8 9 E&P IN EGYPT In Egypt Edison holds a 100% operated participating interest in the Abu Qir concession in the Nile Delta offshore and operates (with a 60% working interest) the West Wadi El Rayan license, in the Western Desert. Edison has also a 20% participating interest in the Rosetta offshore production license. During 2013-2014 Edison took part to the Bidding Rounds and it was awarded of 5 new exploration licences, 3 of which operated.

the NAQPII platform to the farmed out a 40% share to AQP I with the aim to increase RWE remaining the Operator the transportation capacity with 60%. offshore and enhance the transportation efficiency. In October 2009 the first Edison is ready to start in the development lease was coming years a second phase assigned to the JV following the of redevelopment which will WWER 2X oil discovery. In June entail drilling new wells and 2012 a second development building another platform in the lease related to the Rayan 3X oil North Abu Qir concession with discovery was assigned to the the aim of maintaining gas JV and a third lease related to production plateau. the discoveries Rayan 2XA, WWER E1X and Rayan 1X, ROSETTA was assigned in January 2013. The Rosetta Concession, Current production is around operated by BG 80% and 800-1.000 bbl day; to optimize Edison 20%, is located on the the oil sweep efficiency a water northwestern margin of the Nile injection project has been put ABU QIR concessions have been in Delta, extends to approximately in place. The rusults of this At the beginning of 2009 production since the 1970s. 48km offshore in 60 m water projects are aligned with the Edison acquired 100% of the After the acquisition, Edison depth and was awarded in expectations. exploration, development and initiated an important 1995. In 1997 three successful production rights of the Abu Qir intervention which had a discoveries lead to the BIDDING ROUND Concession. Operations are twofold approach: on one side signature of a Gas Sales In order to grow our presence managed by a 50-50 JV a production optimization and Agreement together with the in the country Edison has between EGPC (Egyptian infrastructure revamping plan Rosetta Field Development been extremely active during General Petroleum was put in place; on the other plan approval. Rosetta started the last Bidding Round, with Corporation) and Edison side an important exploration production in 2001 and supplies the aim to enforce our named Abu Qir Petroleum and campaign was undertaken Egypt’s domestic market. exploration asset portfolio. based in Alexandria. which lead to important The unitized development of the In February 2014, Edison The Abu Qir development discoveries in particular in the Sequoia field which lies across signed a contract for consists of 3 concessions (Abu North Abu Qir concession. the boundary of the WDDM exploration and production Qir, North Abu Qir, West Abu After four years of investments and Rosetta Concessions was rights in South Idku Area, Qir) located offshore in the Nile the first phase of the Abu Qir sanctioned in 2008. It consists onshore West Nile Delta with Delta in water depth ranging redevelopment is terminated. In of six sub-sea wells: three wells a 25% working interest and from 14 to 35 meters. The the North Abu Qir concession a on each of WDDM and North Thekah Area, offshore fields are currently producing new platform has been Rosetta which are tied back to Eastern Mediterranean, with a gas and condensate from the installed, a total of more than existing infrastructure. First gas 50% working interest. Abu Madi and Kafr El Sheik 10 wells have been drilled and came on-stream in 2009, with In September 2014, Edison formations. The offshore an equal number of workover production delivered to both was awarded of the 100% facilities include 7 platforms has been performed. Gas the domestic and export markets. exploration right of the North (including 2 bridge connected production doubled going from West Gindi, onshore Western compression platforms), 24 140 to 270 MMSCF per day WEST WADI EL RAYAN Desert and the 50% wells and a network of sea- and the liquids, condensate The West Wadi El Rayan exploration right of both North lines. The onshore facilities are and LPG production increased concession is located in the West Al Amal Area, offshore located in the Meadia plant and significantly going from 5.000 eastern sector of the Western Gulf of Suez and North Port have a treatment capacity of to 7.600 bbl per day. Desert Basin. It was granted to Fouad Area, offshore Eastern 480 MMScf per day. A new pipeline has been Edison in May 2005. Mediterranean. The oldest fields in the Abu Qir installed in 2012 connecting In September 2006 Edison E&P IN ALGERIA Edison has been active in Algeria since the late 90’. Through the participation in most bid rounds in the country from 1995 to 2005 Edison developed a wide experience of the exploration themes in various areas of the Algerian south.

In 2002 a JV with Edison as a completed in 2013. Tender plateau of 100 Bcf/year for minority shareholder obtained process for the award of EPC 12 years starting in 2017. A the rights on the Reggane Contract has been launched total of more than 1.7 Tcf of North block, located in the during 2013. Main Contract gas reserves will be put into Reggane basin in the South- has been awarded in May production. Western sector of the 2014. During the second Edison owns a working Algerian Sahara desert where part of the year in field interest of 6.2% in the the main exploration targets activities has been Reggane North block.The are gas bearing Devonian and commenced. Construction other partners are Sonatrach Carboniferous sandstones. phase is expected to be (40%), Repsol (29.25% Since February 2012 the JV completed in 2017. Operator) and RWE (19.5%). is in the development phase; The development plan Reggane field. FEED phase has been foresees a gas production

10 E&P IN CROATIA Edison owns a participating interest of 70% in the Izabela Contract Area offshore Croatia.

The asset is operated by line. Gas production can be Edina (Edison International exported via purposefully built 50%, INA 50%) and consist and existing infrastructure of two gas fields (Izabela and both to Italy and Croatia. Irena) located in the northern Production started in July part of Adriatic Sea, about 50 2014 with a flow rate of km NW of Pula, in water approx. 21 MSmc/d. depth of around 37 m. The Izabela platforms. Izabela and Irena fields were discovered in 2004 and 2006 respectively. The development plan for the Izabela field was prepared in 2008 and completed in 2010. Two unmanned platforms have been installed, and 5 wells drilled and put on E&P IN ISRAEL Israel is one of the most interesting area in the Eastern Mediterranean (Levantine Basin) for hydrocarbon exploration. In the last decade several Bcm of gas have been discovered in the Israeli offshore by Noble Energy and local partners.

The geologic play of the Edison activity started in with a 20% share, has been Joint Venture submitted the Levantine Basin has been 2011 with a regional study. accepted by the Oil request for an extension confirmed also in the Cyprus After evaluating different Commissioner as deep water period in order to better offshore (Afrodite) and it will opportunities, in 2012 Edison Operator in the Joint Venture. investigate the area and be the target of the next negotiated with Ratio Oil the In February 2013 the Oil perform geological studies exploration bid round in the farm-in in the GAL permit. The Commissioner approved the and analysis. The request was Lebanon offshore. An upside permit, covers 1,770 square transformation of the Gal accepted in July 2014. The potential in the area is related Km, in 1,100 to 1,600 meters permit in two separate activities to define the to deep oil targets that will be of water and is located in the licenses: Neta and Royee location for a possible well to tested by Noble in the near southwest corner of Israel's which cover most of the area be drilled within 2016 are future within the Leviathan Exclusive Economic Zone, previously occupied by the currently on going. lease. 150 km off the coast. Edison, Gal permit. In April 2014 the

Venice

IZABELA N

NORTH A/Q P-III

ITALY IZABELA S Pula NORTH A/Q

NORTH A/Q P-II WEST A/Q

A/Q P-II A/Q P-I R A N E A N S E A D I T E R M E Abu Qir Idku Algiers Tunis Media Gas Plant

ALGERIA TUNISIA ROYEE NETA ROSETTA Abu Qir SIDI ABD ISRAEL EL RAHMAN REGGANE NORD

LIBYA WEST WADI EL RAYAN

EGYPT 11 E&P OPERATIONS IN THE WORLD

In the last decade Edison expanded its operations outside of the Mediterranean. An initial phase of expansion saw Edison present in West Africa, in particular Senegal and Ivory Coast where the company still has an active presence. Currently the biggest areas of activity are offshore Norway. Norway and more generally the North Sea will be the next production cluster in Edison E&P operations.

12 13 E&P IN NORWAY Norway is confirmed as a strategic Country for These discoveries are entering in the Edison that aims to develop Norwegian essets development phase and will contribute with and to consolidate here its third active pole of their productions to the Company targets. production in addition to Italy and Egypt. Edison is also part of the NSGI/Polarled Gas Edison International Norway Branch (EINB) transportation project. has been active in Norway since 2007 and is Edison will continue its exploration activity based Stavanger. Edison through a successful combining organic growth with targeted exploration activity reached a portfolio of opportunities in order to optimize its portfolio 24 licenses (8 North Sea, 8 Norwegian Sea, and consolidate its positioning in the Country. 8 Barents sea). To date Norway Branch Leveraging on its long lasting experience, its showed successful track record thanks to the technical skills and financial stability, Edison discoveries of Zidane East and West in aims to play an increasing role in the NCS with 2010/2012 and Skarfjell in 2012. a long term industrial perspective.

24 LICENCES, partner, in the licenses 1exploration well , 6507/7-14S Heather formation with good 7 OPERATED, activities. In the last years was drilled in September 2010 reservoir quality. 3 DISCOVERIES Edison has participated in the and found a 150 meter column The discovery was appraised We have a proven track record drilling phase of 6 new in the Fangst group. by 35/9-8 well, drilled in 2013 thanks to the oil discoveries of exploratory wells on the NCS A second well drilled in 2012, approximately 1,8 km to the Zidane East and West in with 3 discoveries. Zidane 2 well 6507/7-15S, north. The appraisal well found 2010/2012 and Skarfjell in penetrated a separate a thicker reservoir and the Oil 2012. ZIDANE DISCOVERIES accumulation and found gas in Water Contact was In 2014 Edison International (PL 435), NORWEGIAN a 140 meter column of gas in penetrated. accomplished a positive SEA the Fangst group. The 35/9-10 well was drilled in drilling decision in PL 616 Production license (PL) 435 is The field development plan is the southern part of the Skarfjell license, and the first located 15 Km northwest of currently in the conceptual with two deviated wellbores exploration well as Operator the Heidrun field and 35 Km design phase. Commercial (35/9-10S&35/9-10A). will be drilled mid-2015. south of the Skarv field in the production is expected to start The recoverable resources are Edison International is actively Norwegian Sea. In the 1980s by 2018. estimated between 10 and 23 working to participate for the the Zidane area was not The development is planned million Smc of oil and 23rd Licensing Round, and considered very promising by with four producing wells with condensate, and 8-15 billion joined the Barents Sea South the oil industry following subsea completion drilled from Smc of gas. The Skarfjell East shooting group for new unsuccessful exploration by one centrally located template discovery is currently in the 3D surveys. some companies. tied-in to the Heidrun platform. pre-development phase. New exploration concepts Gas will be exported via DISCOVERIES derived from revue of old well Polarled. PENGUIN Edison International Norway data resulted the application The most likely Technically In September 2014 a well Branch has participated in all for a relinquished area. PL435 Recoverable Reserves (P50) drilled by Statoil discovered the APA licences rounds since was awarded in 2007 and the are estimated to be 17.06 wet gas in the area of the 2006 and in the 20th, 21st Zidane-1exploration well GSm3 with a plateau rate of Barent Sea demostrating a &22nd Licensing Round. 6507/7-14S was drilled in 7MSm3/day. new play to be better Edison was qualified as September 2010 and proving assessed. Operator in the NCS in 2009. a 150 meter gas column in the SKARFJELL DISCOVERY Starting from 2011 Edison is Fangst group. (PL 418), NORTHERN POLARLED leading, as Operator, the In the second part of the NORTH SEA Polarled was funded by a management of 7 licenses 2000s new exploration The Skarfjell discovery was sponsor group consisting of (PL 595, PL 587,PL 616, PL concepts were developed, and made by the 35/9-7 well drilled , ConocoPhillips, 707,PL759, PL727,PL770) in 2007 a consortium with in 2012 in the PL 418, Edison, E.ON Ruhrgas, GDF located in the Barents Sea, RWE Dea as operator (40%), Northern North Sea, 17 kms SUEZ, Maersk, OMV, Petoro, Norwegian Sea and North Edison (20%), Maersk Oil southwest of the Gjøia Field. RWE Dea, Shell, Statoil and Sea. Edison International (20%) and OMV (20%) was The discovery well found good Total. Statoil will be the participates actively, as awarded PL435. The Zidane- reservoir in the upper Jurassic development operator.

14 LOCAL HADQUARTERS S E A GAS FIELDS PL 613 T S PL 717 N OIL FIELDS PL 226 E PL 713 A R EXPLORATION LICENSES B PIPELINE IN PROJECT

PL 595 PL 707 PL 708 PL 770

Nordkapp

Hammerfest

Tromso

S E A E G I A N N O R W ° 5 0 6 . 6 Aasta Hansteen L E R C C I I C C T Bodo A R

PL 601

PL 693 ED

PL 759 LARL

PO PL 692

ZIDANE PL 435

PL 510

PL 643 PL 587 Trondheim

Nyhamna N

NORWAY O SKARFJELL PL 418

R

T Bergen

H Oslo

Stavanger S

E

A PL 503

PL 568 PL 620

PL 498 PL 541 PL 727

PL 616

15 A CYGNUS T H S E N O R

TYNE KILMAR GARROW TRENT

UNITED MARKHAM KINGDOM Bacton Refinery

Great Yamouth

WENLOCK IRELAND

London

E&P IN UK AND FALKLAND ISLANDS UK CONTINENTAL SHELF interest in three offshore producing gas In the UK Continental Shelf Edison is active fields: a 80% participation in the Wenlok through its fully owned subsidiary Euroil. field and a 68% participation in the Kilmar Euroil is a minority JV partner in two licenses and Garrow fields (Tors area). Tors and insisting on the Markham field. Wenlok are mature assets. Abandonment is Markham has been discovered in 1984 foreseen in 2018 (Wenlok) and 2023 (Tors). and is in production since 1992. Gas Kilmar, Garrow and Wenlok have all been production is collected on the K13 platform developed through unmanned platforms and subsequently evacuated in Holland installed in shallow waters (30-50 at the Den Helder Terminal. meters)from which dry-tree wells have been drilled. Production from the fields is EDF PRODUCTION UK transported to the onshore Bacton terminal In the UK Continental Shelf Edison is active through a network of third party operated through its fully owned subsidiary Euroil. platforms and pipelines. Euroil is a minority JV partner in two licenses Edison foresees to increase its presence in insisting on the Markam field. the area through an organic growth and a Markam has been discovered in 1984 and is production acquisition. Scouting activities in production since 1992. Gas production is targeting a production acquisition that could collected on the K13 platform and fit with Edison strategic plan are under subsequently evacuated in Holland at the finalization. Den Helder Terminal. In the course of 2013 Edison acquired the 28th SEAWARD LICENSING ROUND only E&P assets EDF owned through its fully Edison has been awarded 5 licenses in the subsidiary EDF Production UK (EDFP), 28th Seaward Licensing Round: 2 licenses located in the UK North Sea, with E.ON and Bayerngas in the Central It deals with anon operated participating North Sea; 1 license with Oyster in the Central North Sea; 1 license with Maersk and Total in the Northern North Sea; 1 license with Maersk and Nexen in the Central North Sea. One further license in the West of Shetland is pending approval.

Wenlock platform. Markham platform.

16 FALKLAND ISLANDS Edison’s acreage in the Falkland Islands is C E A N extremely large: 49,000 km2 (equivalent to T I C O L A N 220 North Sea Blocks) and is located in 13 A T licences to South and East of the islands in a mostly untested basin. N The Falkland Island south and east basin is FALKLAND ISLANDS Stanley an exciting frontier basin with world class potential where a number of prospects already identified in different geological plays S reduce the overall exploration risk. The Falkland Islands, a British Overseas Territory, enjoy a large degree of internal self- government with the

guaranteeing good government and taking ARGENTINA responsibility for their defence and foreign

affairs. The capital and only city is Stanley on Ushuaia East Falkland.

Edison farmed in the licenses confidence in the potential of the previously 100% owned by basin. Falkland Oil and Gas Ltd a UK An intensive and comprehensive based explorer in June 2012 work program, which included an taking 25% in the Northern extensive 3D seismic acquisition Licenses and 12,5% in the campaign with three seismic southern licenses. In August surveys for a total amount of 2012 Noble Energy, farm-in both 12.000 sqkm and G&G studies, to the Northern Licences and has been performed during 2013- Southern Licences for a 35% 2014 in order to properly assess interest, assuming operatorship. the exploration potential of the The Loligo well, reaching a depth area. of more than 4000 meters, was According to the existing work followed by the Scotia well, schedule a new drilling campaign reaching a depth of more than is expected to start by mid 2015 5,500m, were drilled in the based on the evaluation and Northern Area Licences using the interpretation of the new 3D Leiv Erikisonn drilling rig in the datasets. second part of 2012. The locations for two wells to Both wells found hydrocarbons be drilled in 2015 in the South were completed safely and within Falkland basin will be matured budget and reinforce the partners in the course of 2014.

The Falkland Islands.

17 INFRASTRUCTURES AND SUPPLY

Edison has an integrated presence in the natural gas supply chain, from production to importation, distribution and sales. By developing new gas infrastructures of Europe-wide importance, Edison is aiming to consolidate its role as a leading operator in the energy sector.

18 19 STORAGE AND DISTRIBUTION

STORAGE GAS STORAGE FACILITY IN ITALY Edison Stoccaggio Spa is the company of the Group in charge of natural gas storage operations. Edison Stoccaggio can draw on a long tradition of expertise in the field, having COLLALTO entered into the storage sector since early 1980s, when the production field of Cellino was LNG converted into a storage facility. Nowadays A D Edison Stoccaggio offers storage services R through the fields of Cellino and Collalto, located I SAN POTITO A respectively in and Veneto. T I The Company is currently completing an C important multi-year investment plan which has S E allowed a significant increase of its storage A PALAZZO MORONI capacity through the expansion of the two existing fields and the start of operations in the T Y new concession of S.Potito and Cotignola. R CELLINO R H E N

DISTRIBUTION Edison Distribuzione Gas (DG) is the company of the Group that takes care of natural gas distribution operations. Edison DG distributes each year about 300 million cubic meters of natural gas to 150,000 customers in Northern and Central Italy and operates 1,450 km of low-pressure pipelines, 1,200 km of medium-pressure pipelines and 1,000 km of connecting-pipe systems. Edison DG is planning to grow its size participating in the new tenders that are soon to be issued by Italian municipalities.

The Collalto Storage field.

20

SWITZERLAND

Milano FRANCE Rovigo

Rosignano Piombino ITALY BLACK SEA BULGARIA Sofia IGB Rome PIPELINE

Istanbul

Otranto GALSI PIPELINE POSEIDON TURKEY PIPELINE

Athens

TUNISIA ALGERIA

Crete CYPRUS

EAST-MED PIPELINE LEGENDA M E D I T E EAST-MED PIPELINE R R A N E A N S E A EXISTING NETWORKS GALSI IGB PIPELINE IGI ONSHORE LIBYA POSEIDON PIPELINE ISRAEL EGYPT TRANSPORT

THE TRANSPORT PROJECTS UNDER All these projects have a strategic relevance for DEVELOPMENT the European goals of security and diversification of energy supplies and have been received the Edison develops some important projects in status of Projects of Common Interest according Southern Europe: to the European Regulation 347/2013. Morover Edison, as EDF’s Gas Platform, supports • IGB gas pipeline (3-5 billion cubic meters the development of South Stream Offshore of gas/year), which will interconnect the Greek Project (63 billion cubic meters of gas/year) which network to the Bulgarian network; will interconnect Russian Gas System to Europe, crossing the Black Sea until Bulgaria’a shore. • Galsi gas pipeline (8 billion cubic meters of gas/year), which will link Algeria with Sardinia and Tuscany;

• Poseidon gas pipeline (10-14 billion cubic meters of gas/year), that will link Italy and Greece as part of the ITGI project to link Italy and Europe with the gas reserves developed in the Caspian, the Middle East and the East Mediterranean Regions.

• East-Med pipeline (10-15 billion cubic meters of gas/year) that will unlock the gas reserves recently discovered in the East Mediterranean to Greece and to the Poseidon Pipeline.

21 ELECTRIC POWER OPERATIONS Founded in 1884, Edison is Europe’s oldest energy company. Today, it’s one of Italy’s leading operators in the electric power and hydrocarbon sectors. In the electric power sector, Edison’s share of the Italian production market was 6.7%, with 18.7 TWh produced in 2013.

22 ELECTRIC POWER HIGHLIGHTS

7. 7 GW installed generating capacity

18.7 TWh electric power net production in Italy

56.3TWh electric power gross sales in Italy 111 electric power production sites

23 EDISON: A LEADING PLAYER IN ELECTRICITY MARKET

Edison is one of Italy’s leading operators in the electric power and hydrocarbon sectors. Edison installed capacity is 7.7 GW, with a portfolio of efficient and environmentally compatible generating facilities that includes 47 hydroelectric power plants, 22 thermoelectric power plants (6 of which mothballed), 32 wind farms, 9 photovoltaic systems and 1 biomass system. In 2013 all these facilities produced 18.7 TWh of electricity.

THE ITALIAN ENERGY MARKET In Italy, the process of deregulating the energy market, which got under way in 1999 for electric power and in 2000 for natural gas, completed its course over a period of 10 years through several legislative steps. As a result, Italian businesses and families are now able to choose the supplier of electric power and natural gas that best suits their needs.

WHAT WE OFFER TO THE MARKET EDISON STANDS BY RESIDENTIAL Since the very beginning, Edison has been in CUSTOMERS forefront of the deregulation process as the most Edison is in the residential market with an offer to dynamic operator, selling energy to large companies supply electric power to families that is recognized and supporting the establishment of consortia of as the most affordable alternative. On the heels of small and medium-sized business, which, its successful foray into the electric power area, individually, did not consume enough energy to Edison broaden its sales package for families with access the benefits of a competitive market. the addition of natural gas. The sales packages can Today, Edison can count on a vast portfolio of meet every consumption need with different options. business customers including a substantial share When customers choose Edison, no activation costs of the independent contractor market. or security deposit are required and no changes to the meter or the electrical system are needed. ENERGY EFFICIENCY: CONSUME LESS Switching is extremely easy and instantaneous: AND BETTER customers can execute the contract online Edison offers its customers a broad range of (www.edisoncasa.it). Today Edison has over services to help them increase energy efficiency 1,500,000 customers in Italy. and rationalize their energy resources. The Edison approach to energy efficiency does not end with selling services or technologies. We offer an innovative business model designed to revolutionize the relationship between energy supplier and customer and transform it into a technical partnership that ensures customized solutions and savings.

24 CENTRALE KHR (Edison 20%) PRATI DI VIZZE HEADQUARTERS EL.IT.E CURON BRUNICO GLORENZA OPERATING COMPANY MARLENGO LASA PONTE GARDENA SONICO CASTELBELLO THERMOELECTRIC POWER PLANT PREMESA PIEVE CAMPO BELVISO TAIO VERGONTE CEDEGOLO CASTELLAVAZZO VENINA THERMOELECTRIC MOTHBALLED PLANT ALBANO GANDA MEZZOCORONA VAL MEDUNA (5 c.li) BATTIGGIO ARMISA COGNO LA ROCCA POZZOLAGO VEDELLO CIVIDATE TORVISCOSA HYDROELECTRIC POWER PLANT PIANCONE ZAPPELLO VAL CAFFARO (4 c.li) COLOGNO MONZESE PUBLINO Selvazzano MARGHERA WIND FARM SESTO S.G. CALUSCO Milano PADERNO TROFARELLO PHOTOVOLTAIC SYSTEM ROBBIATE CASCINA BIANCHE MEDIGLIA BIOMASS SYSTEM OVIGLIO SARMATO PORTO VIRO R&D CENTER VERZUOLO SAN QUIRICO A FARIGLIANO MERCHANT LINE EL.I.TE. D TEGLIA R ROCCHETTA

SAN BENEDETTO I VAL DI SEMBRO A PORCARI T I MONTEMIGNAIO C

JESI S E PIOMBINO PENTIMA A

2013 PRODUCTION MIX T BUSSI SULMONA S. Giovanni Teatino ITALY Y R MONTEFFERRANTE MONTAZZOLI THERMOELECTRIC POWER PLANTS TERMOLI R Roma CASTIGLIONE M. MARINO RIPABOTTONI No 22 H LUCITO CASTELNUOVO DELLA DAUNIA MW INSTALLED 5,812 E ROIO-SCHIAVI PIEDIMONTE FAETO VOLTURARA MOTTA N FOIANO VOLTURINO GWh PRODUCTION 13,503 LATINA MONTE BARBATO CELLE CANDELA I TOPPO GROSSO SAN ORSARA VITO A S. GIORGIO HYDROELECTRIC POWER PLANTS LA MOLARA N ROCCHETTA FOIANO S. ANTONIO PIANO No 47 S DEL CASINO CASTELNUOVO VAGLIO E DI CONZA MW INSTALLED 1,358 A SELLA DI CONZA GWh PRODUCTION 4,388

WIND FARMS

ALTOMONTE No 32

MW INSTALLED 471 MELISSA-SAN FRANCESCO GWh PRODUCTION 824 MELISSA-STRONGOLI PHOTOVOLTAIC SYSTEMS SIMERI-CRICHI No 9

MW INSTALLED 13

GWh PRODUCTION 11 MILAZZO MISTRETTA BIOMASS SYSTEMS

No 1

MW INSTALLED 6

GWh PRODUCTION 41 Ragusa Siracusa

ABROAD THERMO PRODUCTION ABROAD S I C I L E L GWH 1,338 I A N C H A N N

INTERNATIONAL EXPANSION Today the areas with the greatest potential are the Balkans and the Mediterranean Basin. In Greece, Edison has an established presence as the country’s second largest operator through Elpedison, a joint venture with and Halcor. Elpedison owns a 390 MW combined cycle (CCGT) power plant in Thessaloniki and a 420 MW CCGT facility in Thisvi. The joint venture’s goal is to achieve over the next few years a 20% share of the Greek production market.

Thisvi power plant. 25 EDISON IN THE WORLD

NORWAY

UK

BELGIUM

CROATIA

FRANCE

ITALY

GREECE

ALGERIA

FALKLAND ISLADS

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Edison Energie Speciali Srl Edison Trading Spa Foro Buonaparte 31 Hungary Branch 20121 Milan - Italy Váci utca, 15 Tel. +39 02 62221 1052 Budapest - Hungary Tel. +36 1 429 0330 Fax +36 1 235 0415

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27 Edison Spa Foro Buonaparte 31 20121 Milan - Italy tel 02 62221

Edited by E&P Division

Editorial Coordination External Relations Department

Design M Studio

Photo Edison Media Center (www.edisonmediacenter.it) Terminale GNL adriatico S.r.l.

Printing Grafiche Maggioni

November 2014

Edison Spa Foro Buonaparte, 31 20121 Milan - Italy tel. +39 02 6222.1 www.edison.it