26 | 05 | 16 market highlights

SICILY FINALLY INTEGRATES WITH THE EUROPEAN POWER MARKET: THE NEW POWER LINE «SORGENTE- RIZZICONI» STARTS OPERATIONS

The ten-year awaited high-voltage (380 kV) power line “Sorgente-Rizziconi” that connect Sicily to the mainland has finally been completed and will officially start operation on May 28th. This is a strategic infrastructure for the national electricity grid, completing the HV interconnection and mitigating the power flow constraints that caused significant price spreads in the last years between Sicily zonal market and the continental one.

The transitory regulation (AEEGSI deliberation 521/14), that was established to “artificially” decrease price spreads in Sicily, will automatically ends as the new power line get commissioned. Sicily zonal market price is therefore expected to soon align with the continental markets, reducing the still existing spread of about 4-5 €/MWh and decreasing PUN price and, in turn, cost of electricity for final users.