We are approaching the end of a year that was the starting point of significant reshuffles as a result of geopolitical upheavals and the evolving energy transition. Conditions which, in the shadow of the energy crisis, dictated the immediate reaction and extensive cooperation of the parties involved in the energy and business sector, but also at the policy-making level to deal with the socio-economic impacts.
Within this complex environment and despite the constantly emerging challenges, EDA THESS took all necessary measures to mitigate risks and ensured its business continuity, pursuing the further development of its activities throughout the areas of its License. In compliance with the legislative and regulatory framework, the Company implemented its investment plan for the expansion and reinforcement of the distribution infrastructure by successfully completing the supply of all new areas, in accordance with the Development Program for the year 2022.
The milestone of the year was the arrival of the – now - sole shareholder Italgas, the third largest Distribution Network Operator in Europe. This signals the beginning of a new era driven by innovation and know-how, concepts that I advocate over time and that are applied at all levels of the Company's development to meet the goals that are now being set at the European level.
After all, 2022 was a year when policymakers in Europe struggled to stay united and balance the needs of the energy transition with the energy supply and cost crises. Energy security and independence are still the top priority of the European Union. However, our country has responded successfully to these challenges thanks to the LNG infrastructure available, achieving already this year the diversification of the largest part of imports with the procurement of increasing quantities of LNG.
In accordance with the strategy of the new shareholder and aiming to strengthen the security of supply and the cost-effectiveness of supplying remote areas, the Company plans for the next 5 years to supply Remote Networks with LNG, utilizing the "virtual interconnection" technology that is currently provided for by the regulatory framework. In this context, EDA THESS has already installed the 1st LNG satellite gasification station in Greece.
Having a firm presence in Europe's energy scene and being a member of the European Organization of Gas Distributors for Sustainability - GD4S, Italgas now also supports the formulation of energy policy in Greece, with the aim of creating a safe, affordable and sustainable energy system through natural gas infrastructure. In addition, the fruits of the work accomplished by GD4S are aimed at adopting best practices for the cost-effective development of the biomethane sector in the country.
To this end, EDA THESS has included in its development planning investments for the upgrading and repurposing of the networks and the completion of the digitilization of the infrastructures, utilizing the know-how and expertise of Italgas. In this way, infrastructures will remain sustainable as they will incorporate increasing amounts of renewable gases, contributing to the achievement of the objectives set out in the REPowerEU Action Plan and the net-zero target outlined in the European Green Deal.
Welcoming 2023, we will have to address equally important challenges as discussions on the architecture and the players of the energy market are expected to intensify. Among these players are the Natural Gas Distribution Network Operators, who have an enhanced but also irreplaceable role to play in the future energy market, decarbonized gases and hydrogen. In this context, collective steps and coordinated efforts are deemed necessary for the acknowledgment of the added value delivered by existing and future gas infrastructures during the enactment of a series of legislative interventions (Gas Package, Methane Emissions Regulation, Energy Performance of Buildings Directive, etc.) .
At the national level, the revision of the NECP within 2023 - where the objectives set in the RePowerEU action plan should be taken into account- will be an important step forward for the energy sector of Greece, while an additional important element may be the adoption of the Energy Efficiency First Principle. In this context, the impact that end-use options and solutions have on the resilience of energy infrastructure should be taken into account when assessing the cost benefit of new investments. Therefore, it is necessary to include all available RES technologies as well as heating technologies that are ready to operate with increasing amounts of renewable gases.
With an eye on the future, EDA THESS is leveraging the history of its new shareholder to expand its business activity, recognizing the importance of taking action to address climate change and advocate the triptych: energy transition, security, affordable energy for all. In this context and aiming to increase the added value for stakeholders, the Company implements actions to raise environmental awareness and enhance solidarity and to substantially contribute to social prosperity. One of the priorities of EDA THESS for the coming years is to strengthen the sustainability of its infrastructure and operations. In this context, the Company has included in its Operational planning for the coming years, measures and actions to increase energy efficiency, reduce consumption and limit GHG emissions, in alignment with the ESG indicators’ monitoring and improvement practices followed by its shareholder Italgas that is a pioneer in the sector.
So if you ask me what were the landmarks for the Company in 2022 and how we are planning to welcome the new year, I would say that the restructuring we achieved and our integration into the Italgas Group - a group with which we serve a common vision and purpose - finds us prepared to address the demands of the energy transition and climate goals. Consequently, an auspicious future with significant prospects for the continuation of the values we stand for and with a focus on sustainability, is looming. Let us not forget, however, that the most powerful link that unites the value chain of EDA THESS with the Shareholder and the consumers are its people– the most valuable asset in our entire history.
