Company Profile 2016 English vErsion
CONTENTS COMPANY OUR STORY......................................................................4 ABOUT US........................................................................6 ORGANISATION CHART. ..................................................7 OUR MISSION...................................................................8 SUPPORT OPERATIONS...................................................9
SERVICES ELECTRICITY, DETAILED PLANT DESCRIPTION.................................. 12 ELECTRICAL DISTRIBUTION......................................... 16 GAS DISTRIBUTION...................................................... 17 DISTRICT HEATING....................................................... 18 WASTE MANAGEMENT................................................. 19 TELECOMMUNICATIONS AND Smart CitIES.............. 20 CONTROL CENTRE. ....................................................... 21 CARTOGRAPHY............................................................. 22 FINANCIAL HIGHLIGHTS - 2015. ................................... 23
ETHICS MANAGEMENT SYSTEMS............................................. 28 ENVIRONMENT. ............................................................ 29 SAFETY.......................................................................... 30 STAFF............................................................................ 30 COMMERCIAL OPERATIONS........................................ 31 qualitY....................................................................... 32
COMPANY OUR STORY ABOUT US OUR MISSION AGSM GROUP SUPPORT OPER ATIONS
AGSM COMPANY PROFILE 2016
OUR STORY The origins of AGSM Group and its development since it was established over one century ago have always been closely linked with the territory and history of the city of Verona. The Azienda Elettrica Comunale (Municipal Electricity Company) was established in August 1898, and it was the first to supply power for industrial development. Since the early 20th century, AGSM has brought together all the services that are essential for everyday life and provided them to every household in Verona. The Azienda Generale Servizi Municipalizzati (General Company for Municipal Services) of the Municipality of Verona, which soon was just called AGSM, was established officially on 24 October 1931, with the first grouping of the Electricity Company, Aqueduct Company and Ice Factory, Gas Company and Tramway Company. In 1923, a dam was built in the Chievo district, and the first power plant was established in Tombetta. The Camuzzoni channel branched off of the dam and flowed into the power plant, carry-
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AGSM COMPANY PROFILE 2016
ing hydraulic power from the Adige river, which was then transformed into valuable electricity. In 1952, during the booming reconstruction after the Second World War, electricity demand was higher than supply. For this reason, in 1958, AGSM opened a 10-million m3 reservoir and a cement dam that was 156 metres high in Raossi di Vallarsa (Rovereto), 800 metres above sea level. From there, an underground penstock still carries water to the Ala hydroelectric power plant. The Valbona and San Colombano facilities were opened during the same period. In the years of booming economy, from 1958 to 1964, electricity demand doubled again, and AGSM had to find new energy sources as soon as possible. From 1964 to 1972, there was another surge in demand. The Company met the increasing demand by opening a thermal power plant in Ponti sul Mincio, near Peschiera del Garda. The thermal power plant was completed in 1966 and then upgraded in 1983 and 2003. The first Zambelli photovoltaic power plant was opened in Cerro Veronese in 1984, and it was upgraded and modernised in 2009. In 1988 and 1989, AGSM Group built high-altitude photovoltaic plants at the Biasi al Bicchiere mountain refuge, near Vipiteno, 3,200 metres above sea level, and at the Val Martello mountain refuge, 2,610 metres above sea level, in Stelvio National Park. Another significant contribution to energy development started in 1974, when the first combined-heat-and-power and district heating power plant was built for the city in Forte Procolo. After that, four more power plants were opened in Golosine (1984), Borgo Venezia (1987), Basso Acquar, in the city centre (1989), and Borgo Trento (1994). The centralised production of electricity and heat results in savings of 35,000 tonnes of oil equivalent per year, protecting the environment from combustion emissions. In 2000, AGSM became a joint-stock company and started to be highly committed to producing energy from renewable sources. In 2001, a photovoltaic plant was installed on the roof of AGSM’s headquarters, and a wind farm was put into operation in Monte Vitalba, in the province of Pisa, in 2007. It was the beginning of the Company’s experience in the wind sector, which continued in 2008, when 16 wind turbines were put into operation in Casoni di Romagna. In 2008, AGSM Group also acquired the gas distribution business in the Municipalities of Illasi, Tregnago, Badia Calavena and Selva di Progno. During that year, it also repowered the Forte Procolo combined-heat-and-power plant by installing two new gas engines. In 2009, AGSM installed an integrated photovoltaic roof on top of the Bentegodi Stadium, the first in Italy. During that year, AGSM also installed two new combined-heat-and-power plants in the Verona hospitals and a new hydroelectric plant in the Adige river basin, at the Chievo dam. In 2010, a large photovoltaic plant was installed on 11 industrial buildings at Consorzio Zai in Verona, and after a tender the Company was awarded the concession to distribute methane gas in the Goito area (MN). In 2012, AGSM built two wind plants in Riparbella and Carpinaccio, Tuscany, installed photovoltaic roofs on schools in Verona, put into operation a photovoltaic power plant in a former military base in Roncà and acquired the gas distribution grid of six Municipalities in the province of Vicenza (Chiampo, Arzignano, Nogarole Vicentino, S. Pietro Mussolino, Altissimo and Crespadoro). In April 2013, four wind turbines were put into operation on Mount Mesa, in Rivoli Veronese, and in 2015 AGSM started to operate the hydroelectric power plant in Belfiore, in the province Verona.
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AGSM COMPANY PROFILE 2016
ABOUT US AGSM Group is the spark that lights up Verona. Since 1898, it has provided the city with essential services, drivers for social growth and industrial development. Over the years, AGSM Group has gained deep knowledge of the market where it operates and the needs of its Customers. This enabled AGSM Group to become a leader in the territory, thanks to its wide-ranging supply. AGSM Group provides a broad range of services, including the supply of electricity produced from both traditional and renewable sources, heat production and district heating, public lighting, electricity transmission and distribution, gas distribution, waste management and local hygiene services, cartography and telecommunications. This includes the operation of technological facilities, but also technical and commercial customer relationships, such as works budgeting, management of contracts and connections, and consumption measurement and billing. In 2012, AGSM Group incorporated Amia Spa, which fully manages the environment business - see Waste Management on page 19. Thanks to its development abilities, today AGSM Group is one of Italy’s leading multi utility companies. AGSM Group is a joint-stock company, and at present it is 100%-owned by the Municipality of Verona. AGSM Group is a member of Confindustria.
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AGSM COMPANY PROFILE 2016
ORGANISATION CHART
MEGARETI (99.75%)
2V ENERGY SRL
AGSM ENERGIA SPA
(50%)
(94.85%)
CONSORZIO IND. CANALE G. CAMUZZONI SCARL (75%)
PARCO EOLICO CARPINACCIO SRL
TRANSECO SRL
(63%)
(100%)
PARCO EOLICO RIPARBELLA SRL
AMIA CONSULTING SRL
(63%)
(100%)
AGSM LIGHTING
SERIT SRL
LOMBRICA SRL
(100%)
(60%)
(99.74%)
MANTOVA AMBIENTE SRL
AGSM
Verona SpA
AMIA SPA
DRV SRL
(100%)
EN.IN ESCO SRL (100%)
CONSORZIO GPO (33.46%)
(11%)
(50%)
4.19%
ESA-COM SRL (50%)
BOVOLONE ATTIVA SRL (40%)
ACQUE VERONESI SCARL (46.72%)
VEGA SRL (51%)
IEG SRL (51%)
CENTRALE TERMOELETTRICA DEL MINCIO SPA (45%)
PARCO EOLICO MONTE VITALBA (15%)
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9%
AGSM COMPANY PROFILE 2016
OUR Mission AGSM Group provides services that are essential for the citizens and for the development of local businesses, entities and institutions. Environmental protection and a focus on customer needs are the guiding principles of our approach to the free market. AGSM Group’s mission is the commitment to achieve economic performances and operational results that lead to wealth production and distribution, while taking into account local requirements. At AGSM Group we are aware of the value of sustainable development, and we believe that our success is measured by the achievement of economic performance and social and environmental results that meet the stakeholders’ expectations. AGSM Group is a multi utility company that provides high-quality and cost-effective public services. We operate in a specific regulatory and economic framework of the sectors that we manage, and we face the challenges posed by our overall customer satisfaction goal.
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AGSM COMPANY PROFILE 2016
SUPPORT OPERATIONS AGSM Group operates in the production of electricity and heat, electricity, gas and heat distribution, sale of electricity, gas and heat, and telecommunications and waste management services. The Group’s operations are divided based on a functionality criterion and allocated to its companies: AGSM Verona Spa - It is the Parent Company and deals with staff and corporate operations for the entire Group, as well as production and development of renewable sources Megareti Spa - It manages regulated electricity and gas assets AGSM Energia Spa - It is a commercial company that sells and trades electricity, gas and heat Lighting Srl - It manages public lighting installations AMIA Group - It manages integrated waste collection and disposal services, maintenance of green areas and waste management
Staff and corporate operations
• Administration and Finance • Planning and Control • Human Resources and Organisation • Information Systems and Telecommunications • Design and Development of Renewable Energy • Works and Heritage • Quality, Safety and Environment • Digital cartography
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SERVICES ELECTRICITY, DETAILED PLANT DESCRIPTION GAS DISTRIBUTION ELECTRICAL DISTRIBUTION DISTRICT HEATING WASTE MANAGEMENT TELECOMMUNICATIONS AND SMART CITIES CONTROL CENTRE CARTOGRAPHY FINANCIAL HIGHLIGHTS 2015
AGSM COMPANY PROFILE 2016
ELECTRICITY, DETAILED PLANT DESCRIPTION Energy development in Verona is composed of three essential stages: hydroelectricity, combined heat and power, and electricity generated from heat. These three stages are combined with the search for and development of renewable sources of production. Today, thanks to this diversification and the liberalisation of the electricity market, AGSM Group has the expertise and professionalism needed to meet any energy demand. AGSM Group has production plants with total installed power of 388.7 MW.
RENEWABLE ENERGY 25% of the electricity produced by AGSM comes from renewable sources. This figure is increasing steadily, especially thanks to the implementation of new hydroelectric, wind and photovoltaic plants.
HYDROELECTRICITY The hydroelectricity produced by AGSM Group accounts for 17% of the total. The hydroelectric power plant in Tombetta (VR) uses water flowing from the Camuzzoni Channel and has installed power of 12 MW. The Chievo power plant uses water released from the minimum vital flow of the Adige river, and has installed power of 1.45 MW (75%-owned by AGSM). The Ala power plant collects water from the Leno torrent in the reservoir created by the Speccheri dam, and has installed power of 40 MW. The power plant in San Colombano (TN, 50%-owned by AGSM) collects water from the Leno torrent in the reservoir created by the Toldo dam, and has installed power of 20 MW. The run-of-the-river power plant in Valbona (TN) uses water from the Rio Ala river, and has installed power of 2 MW. The run-of-the-river hydroelectric plant along the Adige river in Belfiore (VR) has installed power of 5.865 MW.
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AGSM COMPANY PROFILE 2016
WIND PLANTS A wind power plant composed of 7 wind turbines is operated in Monte Vitalba (PI). The plant’s total power is 6 MW. In 2009, a wind plant with 16 wind turbines was opened in Casoni di Romagna (BO), on the Apennines between Tuscany and Emilia Romagna. The plant’s total power is 13 MW. In Rivoli Veronese, 4 AGSM wind turbines are operated at total power of 8 MW. In Riparbella (PI), the wind plant is composed of 10 wind turbines, with total power of 20 MW. In Carpinaccio (FI), 17 wind turbines produce energy with total power of 13.6 MW. In the Municipality of Affi (VR), 2 more wind turbines with power of 2 MW each are ready to be installed near the Rivoli Veronese wind plant.
PHOTOVOLTAIC PLANTS AGSM installed a large photovoltaic plant made of 13,328 panels on top of the Bentegodi Stadium in Verona. The plant’s installed power is 996 KW. In Cerro Veronese, AGSM upgraded the photovoltaic plant in Zambelli, on the mountains near Verona. The use of advanced technology enabled AGSM to increase the installed power from 70 to 178 KW on the same surface area. AGSM built a 3.5 MW photovoltaic plant on the over 70,000 square metres covering the 11 buildings of Consorzio Zai. The plant was put into operation in 2010. A 593 MW photovoltaic plant was built in the former military base in Roncà (VR). Today, AGSM is also providing its experience in the photovoltaic sector to domestic customers, with a deal called “Sole AGSM”.
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AGSM COMPANY PROFILE 2016
COMBINED HEAT AND POWER The five combined-heat-and-power plants installed across the city have total installed power of 60 MW, and they produce electricity (240 GWh/year) and heat (250 GWh/year) at the same time. The two new power plants installed in the Verona hospitals have power of 0.8 MW (Borgo Trento) and 1.4 MW (Borgo Roma) respectively. The combined heat and power produced by AGSM accounts for 38% of the total.
PUBLIC LIGHTING For almost a century, the city’s lighting has been managed by AGSM Group. In 1845, the Municipality decided to replace oil lanterns with gas lanterns. In Italy, the first gas lanterns were used in Turin in 1838, in Milan in 1845 and in Florence in 1847. Electricity started to be used in 1907, when the Municipality awarded the public lighting service to the Officina Elettrica Comunale (Municipal Electricity Factory). Today, AGSM Group manages over 37,000 lighting sources installed in over 1,000 km of streets in the Municipality of Verona. AGSM Group also manages 4,200 lighting points in the Province of Verona. AGSM Lighting has arranged a number of project financings in several Municipalities in the Province of Verona (for approximately 90,000 people). By lighting up centres, streets and squares, AGSM Group provides a better quality of life and a safer urban environment, and enhances the value of artistic and architectural heritage. In particular, AGSM Group focuses on limiting light pollution and saving energy with the use of high-efficiency equipment.
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AGSM COMPANY PROFILE 2016
BIOGAS AND METHANE PRODUCTION (Ca’ del Bue) AGSM Group will produce electricity and methane gas from waste. The Veneto Region approved a project to upgrade the anaerobic digesters at the plant, so that the wet part of waste can be treated to produce electricity and methane gas. The biogas section will process 40,000 tonnes of organic part per year, with estimated biogas production of 4,300,000 m3/year, which will be used to produce electricity (approximately 7 million KWh/year). The section that treats waste to produce FFW (Fuel From Waste) can process up to approximately 200,000 tonnes of waste per year.
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AGSM COMPANY PROFILE 2016
ELECTRICAL DISTRIBUTION In the Municipalities of Verona and Grezzana, Megareti Spa manages over 2,000 km of low-voltage grid, 1,200 km of medium-voltage grid and 184 km of high-voltage grid. It also operates approximately 1,700 medium- and low-voltage transformer stations installed across the territory, which are monitored and managed by the company 24/7/365.
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AGSM COMPANY PROFILE 2016
gas DISTRIBUTION Every year, Megareti Spa carries over 300 million cubic metres of gas to factories, blocks of flats, houses and district heating systems. Megareti Spa supplies methane to Verona, Illasi Tregnago, Badia Calavena, Selva di Progno, Goito (MN) and the Municipalities in the province of Vicenza from the national grid and through the distribution grid, which is remotely controlled and operated by the Control Centre on a 24-hour basis. At the Control Centre, data are collected in real time, in order to provide a continuous and safe service to Customers. Megareti Spa guarantees a safe grid by monitoring the conditions of pipes, performing inspections on the customers’ gas systems and providing emergency teams.
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AGSM COMPANY PROFILE 2016
DISTRICT HEATING District heating uses heat recovered from the cooling-down of power plants. The hot water needed to operate the heating systems of buildings is carried through thermally insulated pipes. AGSM Group has been operating in this industry since 1975. Today, it has 5 power plants installed throughout the city, in addition to the 2 power plants installed in the Verona hospitals, Borgo Roma and Borgo Trento. The heating systems of AGSM Group have a reduced environmental impact thanks to advanced technology. AGSM Group ranks fourth among the Italian cities provided with district heating. Today, the grid extends over 240 km. Over 1,400 buildings are connected to district heating, with a total district heating volume of 12 million cubic metres. The benefits of this innovative service are not only related to the better use of energy sources and, therefore, more respect for the environment, but they also lead to safer and easier management.
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AGSM COMPANY PROFILE 2016
WASTE MANAGEMENT The environment sector, which is managed by the subsidiary company Amia Spa together with Serit, provides the service in 66 Municipalities, covering approximately 70% of the Municipalities in the province of Verona. Over 745,000 people are provided with this service, that is to say over 80% of the people living in the province. In the early months of 2015, AGSM Group acquired 40% of the shares in Bovolone Attiva Srl, a municipally-owned company that operates in waste management in Bovolone (VR). The environment sector also operates in Mantua, with shares held in Mantova Ambiente Srl. Verona’s commitment to separate waste collection enabled the city to become one of Italy’s top cities for number of inhabitants. During 2015, the Group continued to expand its separate waste collection services, by upgrading its collection systems and increasing the amount of collected materials. With the materials coming from separate collection, the Group stood out in the initiative launched by Legambiente and supported by the Ministry of the Environment. Over the last few months, Amia has invested in methane-fuelled and electric waste collection vehicles. Transeco, a company controlled by Amia Verona Spa, operates in special waste recovery and disposal. Over the last few years, it has achieved important positions in the recycling, reuse and treatment of industrial waste. By running own plants, Transeco stores and treats any kind of non-hazardous special waste, and it is a leader in the reclamation and restoration of polluted sites, by participating throughout the reclamation process. The company has also agreements in place with a number of plants in Italy and abroad, where it sends to recovery or disposal any kind of waste from any production process.
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AGSM COMPANY PROFILE 2016
TELECOMMUNICATIONS AND SMART CitIES With approximately 300 km of installed optical fibre, AGSM Group has a metropolitan communication broadband network connected to the national and international internet, and it is the preferred everyday partner of entities and companies based in Verona. AGSM Group supplies customised services in order to facilitate the customer’s business, providing full global support and quick response. By employing advanced technology, AGSM Group not only supplies traditional data transmission and fast internet access services, but also provides customers with multi-disciplinary design and implementation expertise and new cloud-based services, such as email, hosting, storage, desktop display, etc. AGSM Group is also a qualified partner to implement integrated projects, including security systems and video surveillance.
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AGSM COMPANY PROFILE 2016
CONTROL CENTRE From the Control Centre, AGSM manages all the facilities of the services provided by means of an advanced remote control system. The remote control of facilities means that information from different sites are centralised in one physical location. Therefore, at the Control Centre any information on remotely controlled power plants can be acquired in real time, and actions can be taken with specific controls if faults or emergencies are detected. This service is available 24/7/365. The remote control of facilities results in a more effective management of the services provided.
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AGSM COMPANY PROFILE 2016
CARTOGRAPHY AGSM Group keeps numerical cartography updated, including cartography for the Municipal administration. In numerical cartography, the territory is represented in digital format, and building surfaces and volumes are calculated with the association of an element to an identification code. Since 1989, AGSM Group has been using a GIS system, where topographic data can be viewed, updated, represented, analysed and processed to manage the documents of electrical grids, public lighting, gas grids, district heating, optical fibre and road excavations. The data can be accessed from any computer and in traditional paper maps. An interesting new product is a system to manage and monitor road construction sites on AGSM maps. The system can be used both on the web and with an App.
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AGSM COMPANY PROFILE 2016
FINANCIAL HIGHLIGHTS - 2015 In 2015, AGSM Group realised a production value of 784.5 million €. EBITDA, the most significant measurement of profitability, amounts to 81.81 million €, accounting for 10% of production value (turnover).
SIZE OF AGSM GROUP - 2015 AGSM ranks sixth among Verona’s industrial Groups for its turnover FINANCIAL HIGHLIGHTS
• Production Value - 2015 • EBITDA • EBITDA, less depreciation, amortisation and provisions
784.5 million € 81.8 million € 29.7 million €
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AGSM COMPANY PROFILE 2016
INCOME STATEMENT AND BALANCE SHEET HIGHLIGHTS - 2015
MILLION €
Production value EBITDA, less depreciation, amortisation and provisions
784.5 29.7
EBITDA 81.8 Profit before tax Net profit
26 14.4
Equity 297.2 Net invested capital
663
Investment - 2015
40.5
Net financial position
303
INVESTMENT In 2015, AGSM invested 40.5 million € in production facilities, grid infrastructure, district heating, telecommunications and public lighting. BUSINESS SEGMENTS INVESTMENT Electricity production Electricity distribution and measurement Gas distribution and measurement Heat distribution
15.2 mln 6.7 mln 5 mln 1.4 mln
Other operations - Waste management
8.2 mln
- Telecommunications
0.8 mln
- Public lighting
0.9 mln
Structure and other
2.3 mln
TOTAL
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40.5 mln
AGSM COMPANY PROFILE 2016
INVESTMENT - 2011-2015
From 2011 to 2015, AGSM Group invested 243 million €
• New production facilities (Belfiore hydroelectric plant; Riparbella, Carpinaccio and Rivoli Veronese wind plants; photovoltaic plants in the Municipality of Grezzana, Roncà military base and school roofs in Verona)
• Grid infrastructure (replacement of cast iron gas grid completed) • District heating • Telecommunications • Public Lighting
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ETHICS MANAGEMENT SYSTEMS ENVIRONMENT SAFET Y STAFF COMMERCIAL OPER ATIONS qualit Y
AGSM COMPANY PROFILE 2016
MANAGEMENT SYSTEMS AGSM adopts an Organisation, Management and Control Model pursuant to Italy’s Legislative Decree 231/01. A key element of this Model is the “Code of Ethics”. In July 2007, AGSM established a Supervisory Board, which is responsible for ensuring that the Organisation, Management and Control Model is in place and effective, and that the provisions of the “Code of Ethics” adopted by AGSM are observed. In order to coordinate the organisation, AGSM Group implemented several management systems, which were formalised and certified in accordance with applicable standards. The key elements of these management systems are:
• setting policies • setting goals • planning actions to achieve goals and meet requirements • ensuring that requirements are met • continuous improvement
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AGSM COMPANY PROFILE 2016
ENVIRONMENT
AGSM Group has always had the environment at heart, as most of the Company’s operations are closely linked to the whole ecosystem. Environmental impacts come not so much from the products supplied, but rather from the production and distribution processes of the services provided, which result in the use of natural resources, air emissions, waste water and waste production. AGSM Group makes choices with a focus on the respect for the environment, by using new technology and improving facilities. Pollution is eliminated or reduced to the minimum, and this is certified with authorisations issued by the authorities and with periodic monitoring.
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AGSM COMPANY PROFILE 2016
SAFETY The development and dissemination of safety culture are vital goals for the Company’s management. Increased knowledge leads to technical, organisational and procedural prevention measures to protect health and safety at work. Keeping high safety standards for the operations and facilities managed by AGSM Group guarantees safety and continuous operations to our Customers and Citizens.
STAFF Expertise, professionalism, dedication and high specialisation are the strengths of AGSM Group’s staff, the most important added value to the Company. Almost all the staff is employed with an open-ended contract. AGSM Group has over 1,500 employees. They are mostly financial staff or technical staff working in mechanical or electrical engineering. The staff professional development and motivation contribute to the achievement of AGSM Group’s goals.
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AGSM COMPANY PROFILE 2016
COMMERCIAL OPERATIONS Meeting the Customer needs is the key goal of AGSM Group, which is increasingly focused on understanding demand and improving its supply. Both domestic and business customers are fully managed by AGSM Energia, a commercial company. AGSM Energia deals with over 340,000 electricity and gas supplies throughout Italy, and it operates in 5,000 Municipalities. It issues over 2 million invoices every year, and it manages over 290,000 contacts with customers. Customers can have access to new deals, thanks to the market liberalisation and the combined payment for electricity and gas services. When managing the services provided to its customers, AGSM keeps pursuing transparency, engagement and involvement principles, in order to effectively convey information on its business, in particular the actions taken to guarantee environmental protection and, more in general, sustainable development.
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AGSM COMPANY PROFILE 2016
qualitY AGSM Group not only guarantees that its services are always available, but also manages its processes by guaranteeing their quality with management systems. By analysing these elements, the Company can take actions on its organisation and procedures to achieve the goals set in its policies, which focus on customer satisfaction. The levels of quality of the service provided are compared with the requirements set by control authorities, such as Italy’s Authority for Electricity, Gas and the Water System, service charters, which AGSM Group adopted a long time ago, and specific supply contracts. The quality perceived by customers is evaluated with satisfaction surveys and with the monitoring of information received and complaints.
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AGSM Verona Spa Lungadige Galtarossa, 8 37133 Verona Tel. +39 045 8677111 www.agsm.it