Italgas chief calls for ‘pragmatic’ energy transition

The chief executive of Italgas today called for a “pragmatic approach to the energy transition involving policymakers, regulators and system operators”.

Paulo Gallo said that while all these actors agreed in principle on the main characteristics that the transition should have – such as fairness, cost-effectiveness, resilience, and an ability to support the development of a circular economy model – he said their recipes for success differ significantly.

Delivering one of the keynote speeches on the opening morning of Enlit Europe in Milan, Gallo said there was a need to evaluate sectoral policies in the light of the general framework.

He said that the approach followed in European legislation is often focused on the local and immediate effect of selected policies, with little consideration for their systemic impact.

As an example, he cited the debate around the greening of gas. He said there was consensus that delivering increasingly cleaner gas was an imperative and that, as such, gas infrastructure is recognised as having a key role in the energy transition up to and beyond 2050.

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And yet he said: “legislation is not always aligned with such vision.” He said individual pieces of legislation seemed to go in different directions and limit the potential contribution of these renewable gases.

“We should approach the problem from a holistic perspective. We have seen sometimes a simplistic approach.”

Meanwhile, gas DSOs are alive to the potential of gas and are investing in both digitalisation and in connecting locally-produced renewable gas and green hydrogen to their grids.

He warned this disconnect between policymakers and industry meant there was a risk of under-exploiting the considerable potential of such gases and in turn the opportunity offered by the gas system to provide flexibility and security of supply to the European energy system would be lost.

“The gas system can be an incredible tool and an incredible lever for the energy transition.” Gallo, who is also Chairman of GD4S, said there needed to be a step forward on “true sector coupling”. “We have talked for 20 years in a theoretical way about sector coupling. We need to have a clear legislative framework and a viable solution that should not indulge in the self-interest of short-sightedness.”