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The future, forthe past 50 years

Of all scientific discoveries, electricity is the one that has transformed daily life and history the most.In Italy, this strong influence has been proven by the economic development that coincides with the founding and the first 50 years of Enel: 18,250 days in which energy has been driving historical, social and technological changes.A course that continues, even outside of our country: energy, day after day, is going to be the leading vector of the future and its challenges, starting with the environment.

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editorialAn AmbitiousAdventure

by Fulvio Conti

timeline18,250 dAys of life

editorialenel 50: electricityof the pAst, present And future

by Paolo Andrea Colombo

storiesthe protAgonistsrecount...

Five decades, six presidents: challenges, goals, changes of di-rection on the Italian road to elec-trification, as told by those who personally made Enel’s history. The direct testimony of Francesco Corbellini, Chicco Testa, and Piero Gnudi, and memories of Vito An-tonio Di Cagno, Arnaldo Maria An-gelini, and Franco Viezzoli by those who lived important years alongsi-de them: Gennaro De Michele, Vit-torio Vinci, and Alessandro Ortis.

18.250days of life

—50 yearsof energy

history50 yeArs ofitAliAn progress

by Giorgio Napolitano

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interview withettore bernabei«when we “lit up” itAly»

by Daniela Mecenate

scenariosthe silent revolution

by Valerio Castronovo

scenarioselectricity And mediA:AccelerAtors of society

by Aldo Grasso

in-depthwhen mAnAgementmAkes A difference

by Massimo Bergami,Pier Luigi Celliand Giuseppe Soda

An Italian industrial history that is worth telling. The story of a stra-tegic cultural and organizational transformation that allowed to go-vern tumultuous changes and turn them into growth opportunities.

“Let me tell you a story about parallel tracks, the ones we – Rai and Enel – traveled together for the development of the country.” An interview with Ettore Berna-bei, former director general of Rai from 1961 to 1974, an excep-tional witness who tells us about Italy in those “black and white” years, how “we did it” and how we can still do it.

Enel’s contribution to the electrifi cation and the social and economic development of the country: since its nationaliza-tion, 50 years of investments and projects that have been interwo-ven with the history of Italy.

The link between electricity, speed, and communications has become increasingly signifi cant and complex in recent history. By now indispensable to one ano-ther and part of daily life, these elements are the spark of conti-nuous social change.

«According to a Baconian aphorism, three inventions have changed the face of the world: the art of printing, gunpowder, and the compass; so then electricity is jointly communication, arsenal, orientation»

«The visible hand of the managerial decisions theorized by Alfred Chandler, in the case of Enel, has transformed what was just unlikely into what is possible»

«It would have been impossible to consolidate democracy and the Italian miracle without the creation of Enel. Because only a ‘State’ company could bring electricity to wherever it was needed at that time, even to the most remote regions of an Italy that was still rural and poor»

scenariosthe crisis AsA metAmorphosis

by Aldo Bonomi

“The crisis cannot be interpreted in terms of crossing through it, such as a caravan in the desert, but rather as a metamorphosis; the system is becoming something else. In order to find the key to the problem, there is a need to clarify the cultures that, within the crisis, are being imposed upon Western societies. Cultures intended as out-and-out ideologies concerning training, that constitute the matter to be sifted so as to single out possible proposals for the future.”

scenariosthe evolution of electricity mArkets And the new globAl outlook

by Ignacio J. Pérez-Arriaga

passepartoutelectricity isprosperity

by Elena Comelli

There is no doubt that the power sector is facing what is perhaps its major challenge in its history of less than 150 years. Ac-cording to the International Ener-gy Agency or the European Com-mission in its Energy Roadmap 2050, the electricity industry will have to move from a generation mix that is mostly based on fossil fuels to a virtually decarbonized sector by 2050, while supporting the electrifi cation of transporta-tion and heating. And this will have to take place in the midst of an on-going process of regulatory reform meant to introduce more competition and consumer choi-ce and less governmental interfe-rence in this industrial sector.

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oxygen | 16 — 06.2012

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in-depthdefusingthe cArbon bomb

by Danielle Fong

interview with paul saffo technology, mediA, elec-tricity: whAt future?

by Nicola Nosengo

visionswithout light

by Gianni Riotta

interview with licia troisi insights ofimAginAtion

by Luca Morena

“In the past 20 years, electricity generation worldwide doubled. In the next 20 years, it will double again. If we build those plants the way we have been building them, and run them for the 50 years we expect them to last, we will ne-arly double the amount of carbon dioxide in the atmosphere from when civilization emerged. […] We cannot assume that nature will just take care of this mess. We need something more than a faith-based strategy. We need to ask ourselves if we have the coura-ge to turn the wheel.”

Oxygen has experimented with a small exercise of the ima-gination in the form of questions and answers with Licia Troisi. The aim: the drafting of a toy world, a little toy world that is not only a sketch of a possible remo-te-control world where intuitions and aspirations can be put to the test, but also the vision of a futu-ristic world.

Oxygen asked Paul Saffo – a Stan-ford professor and one of the few credible futurists in circulation – to predict what technology will be cru-cial to the future economic and indu-strial development. Beginning with electrical and electronic technology, which in turn is the basis for the de-velopment of the media.

A look into the history of the dark, to reveal that in every age, in every form of art and religion, as well as in philosophy, for mankind, light was truth, clarity and well-being, and darkness was lies, uncertainty and poverty.

«I hope that an ordinary gesture like turning on the light will be accompanied by a greater sense of responsibility: it is something we do very lightly, without thinking of what is behind the light that is illuminating our homes»

«Preferring darkness to light is the ultimate wrong, it means re-fusing to understand the truth: and, in his “Allegory of the Cave,” Plato imagi-nes that the philoso-pher, seen in the light of the world and not reflected in subterra-nean shadows, tries to bring men back to the truth»

contextsthe nAtionAlizAtionof electricity

by Vanni Nisticò

The nationalization of electrici-ty, in 1962, is the most important event of change in the economic history of the Italian Republic, de-stined, as it was, to break the stron-gest economic monopoly and, also, the most formidable power influencing national policy.

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contents | oxygen

contexts the green shock to the Automotive industry

by Roberto Rizzo

scenarios energy 3.0

by Simone Arcagni

data visualization 2015 objective

science at the toy store on mArs, with lego

After much talk, there are seve-ral models of purely electric cars now coming onto the market; a technology that, thanks to the ex-periments underway also in Italy, has proven to be widely reliable and fully ensures road safety. In order to increase the competitive-ness of the electric car, it will be necessary to reduce the cost of the batteries, expected to be halved by the end of the decade, and to build an adequate system of fast char-ging stations.

Energy moves and it moves the society of Italy, its history and its economy. First, the driver of the economic boom and consu-mer society and then, the lymph of the post-industrial economy, now energy is experiencing a new challenge: to become innovative in order to solve the problems and needs of a future that, even though it seems a bit utopian, should not be long in coming.

«In fifty years, the use of energy has changed, but energy itself will probably change, too. So a new panorama stands before us, and above all, a panorama that is changing with increasingly dizzying speed»

contexts itAliAn energy forinternAtionAl design

by Gilda Bojardi

Throughout history, design has accompanied the spreading use of electricity and electronic objects that populate our homes. From hydroelectric plants to household appliances, from pylons to laptop computers, up to the involvement today in energy savings.

contexts the internet of things: when it’s the smArtphone thAt controls the house

by Luca Salvioli

The term “home automation” is not yet known universally and technology still frightens some consumers. But we are closer than you would think to having a smart home, one that is safer, more comfortable and more energy-efficient. All controlled by our smartphones.

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massimobergami—He has taught at several universities and is one of the creators of Startcup, the business plan com-petition at the University of Bologna. Economic Advisor to the Minister for Regional Affairs, Tourism and Sport, he is the co-author of Enel. From national monopolist to global leader.

ettorebernabei—Director general of RAI from 1960 to 1974, he previously worked as a journalist and direc-tor of the newspapers “Giornale del Mattino” and “Popolo.” In 1974, he was named director of Italstat and since 1991, he has been president of Lux Vide, a TV produc-tion company.

gildabojardi—Working in design ever since the ‘80s, in 1994 she became the director of “Interni” (Interiors), a top-notch magazine and launching pad of new trends. She has edited several publi-cations, including the “Guides” published on the occasion of exhibi-tions of design in Milan, Paris and New York.

Aldobonomi —Director of the A.A.S.TER. Research Institute - oriented to the study of the anthro-pological dynamics of local and territorial development - and an adviser of CNEL. He is part of the “Lisbon Group.”

contributors

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valeriocastronovo —He teaches contemporary history at the University of Turin and is editor of the science and history ma-gazine “Prometheus.” He edited the Italian edition of Cambridge Economic History and has publi-shed, among others, The Legacy of the Twentieth Century and The Economic History of Italy.

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pier luigicelli—Director of the Univer-sity Luiss Guido Carli and president of ENIT, he has been involved in the management of ma-jor Italian companies such as Enel, Eni and Olivetti. He was also the Director general of RAI.

6paolo Andreacolombo —Chairman of Enel since 2011, he teaches bud-geting and accounting at Bocconi University. He is on the Board of Directors of Mediaset, Interbanca, Eni and is Chairman of the super-visory board of Aviva Life, Sirti, Moratti Sapa Insurance and Credit Agricole Insurance Italy.

7fulvioconti —Managing Director and General Manager of Enel since 2005, he is on the board of Barclays plc and the AON Corporation. He is the vice president of Eurelectric and Endesa and an adviser of the National Academy of Santa Cecilia.

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gennaro de michele —He was the director of Enel’s Research and Deve-lopment of Engineering and Innovation Policies and a member of the Advi-sory Council of the Techno-logy Platform for the Zero Emission Fossil Fuel Power Plants of the European Union, of and General Secretary of the IFRF. He is the author of more than 200 publications. In early 2011, he founded ejase.

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Aldograsso—TV critic for the new-spaper “Corriere della Sera,” he is a lector of theory and techniques of mass communica-tions at the Catholic University of Milan and lector of Audiovisual Semiotics at the Catho-lic University of Brescia. He is the author of seve-ral radio and television programs.

vanninisticò—Since 1971, he has alterna-ted between journalism and politics: he was a press of-fi cer of the Italian Socialist Party under Craxi and has written for the newspapers “Avanti!”, “Espresso”, and “La Gazzetta del Mezzogior-no”, as well as conducting programs for Rai Radio 2 and Radio 3. He collabo-rates with the editorial division of the Association of Popular Banks.

Alessandroortis—Chairman of the Authority for Electricity and Gas since 2003, he is Vice President of the Euro-pean Council of Energy Regulators and Chairman of MEDREG. He has been vice president of ENEL and a member of the IEA Governing Board.

josé ignaciopérez Arriaga —Director of the De-partment of Sustainable Development, he is a professor of electrical engineering at the University Comillas of Madrid and at MIT in Boston. He is the director of the Training Program for European Energy Re-gulators at the European University in Florence. He has been an energy con-sultant to governments and institutions in over 30 countries.

gianniriotta—Journalist and author of several books, he has been a correspondent from the United States for “La Stampa” newspaper, “l’E-spresso” magazine and the newspaper “Il Corriere della Sera” (of which he was also vice-director). From 2006 to 2009, he di-rected the television news broadcast TG1 and was the director of “Il Sole 24 Ore” from 2009 to 2011.

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paulsaffo —An expert in economic forecasting, he is a professor of economics at Stanford University. He collaborates with the Long Now Foundation and writes for “Fortune,” “Wired,” “Los Angeles Ti-mes,” “New York Times” and “Washington Post.”

vittoriovinci—An electrical engineer, he has worked at SME, the Southern Company for Electricity. Transferred to Enel in 1963, he has been assistant to the Presi-dents Di Cagno, Angelini and Corbellini, and the Director of the Technical Secretariat of the Director General.

liciatroisi—With a degree in physics and a doctorate in astro-nomy, she has published the trilogy Chronicles of the Emerged World, Emerged World Wars and Legends of the Emerged World, and has become one of the world’s best-selling fantasy authors.

daniellefong—Co-founder of Light Sail Energy, she studies the effi ciency of energy accumulation in response to the energy needs of the planet. At the age of 24, she was included by “Forbes” on the list of the 30 people “under 30” who are changing the world.

illustrations:Elena La Rovere

giuseppesoda—He has been a Professor of Business Organization in various universities in Italy and abroad. He is the co-author of Enel. From national monopolist to global leader (2011).

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50 years of energy, millions of moments shared between us. and many millions more to come.

50.enel.com

How mucH energy goes into a moment in time?

009

50 years of energy, millions of moments shared between us. and many millions more to come.

50.enel.com

How mucH energy goes into a moment in time?

The President of the Republic Giorgio Napolitano, a leading advocate of the nationalization of Italian electricity, has written a contribution for the special issue of Oxygen in celebration of Enel’s

first 50 years. It is quoted in full.

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he 2012 is an especially important year for all of us “Enel citizens”: just 50 years ago, with the nationalization of the elec-

tricity industry, our group’s adventure alongside the Italians began. A story of ambition and excel-lence that has accompanied Italy’s development, growth and customs in the last half century. It was on November 27, 1962 that, after a long parlia-mentary debate, the Chamber of Deputies passed final approval of the nationalization of the electri-city system, bringing together a good 1,270 compa-nies throughout the country with the aim of giving them a common administrative, technical and ope-rational organization and to meet the growing de-mand for energy. On December 6th of that same year, the me-asure became law: “Enel – the national agency for electrical energy – has been instituted; its duty is to exercise, on na-tional soil, activities involving the production, importation and exportation, transporta-tion, transformation, distri-bution and sale of electrical energy, from any source pro-ducing it.” This was one of the most significant economic reforms of the postwar period: Italy’s economy was booming, which led to unpreceden-ted growth but at the same time was characterized by great disparities within the country. At the time of the nationalization, 1,700,000 people were living in homes without electricity; moreover, the diffe-rence in electricity consumption, still below the European average, was particularly pronounced between the North and the South, the sign of the great malaise afflicting the South. The creation of a network of transmission and distribution of electri-city throughout the country became the priority of the national electricity company that would enable the spreading of production facilities nationwide,

providing opportunities for growth and impro-vement of the living conditions of the citizens. Thus began the adventure of our company, which initiated its work of the modernization and deve-lopment of the distribution network, the creation of electrical connections with the islands and networ-ks that could carry energy throughout the peninsu-la and connect it with foreign countries. Not even a year after the approval of the constitution of the law, the National Dispatching Center of Rome was crea-ted to ensure the management of the production facilities and transmission network, as well as the interconnection with other countries, and it had become the core of the entire Italian energy system,

a system that, from that moment on, would never stop growing. In 1966, hydroelectric produc-tion covered less than 50% of the total production for the first time in Italian history, as eviden-ce of the continuous and sustai-ned increase in the demand for energy, which made it increasin-gly necessary to resort to ther-moelectric production. These were the years in which Enel be-

came the second Italian industry regarding its sales figures, and work was completed on the construc-tion of a transmission network adequate for the developing needs of a country that was beginning to be seen as an industrial hub in a world which, in turn, was beginning to expand its borders; on the night of July 21, 1969, the National Dispatching Center detected a demand for electricity far above average in order to meet the energy demands of the Italians who were watching, broadcast live on tele-vision, Armstrong and Aldrin landing on the moon. Following the enthusiasm of the economic boom came the years of the oil crisis, triggered by the Arab-Israeli conflict on Yom Kippur in 1973; the-se were years of austerity and “Sundays on foot.”

EnEl 50:ElEctricity of thE past,

prEsEnt and futurE

editorial

Ed

by Paolo Andrea Colombo

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Enel is now presentin 40 countries,

bringing electricityto 61 million

customers thanks to the work of more

than75,000 employees

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To reduce electricity consumption of public ligh-ting by almost half, the opening hours of stores were reduced and television broadcasts ended at 10:45 p.m. On December 20, 1973, the Chamber of Deputies approved an agenda that, “given the serious crisis that has hit the country in the energy sector,” committed the Government “to develop a firm policy of research and the development of al-ternatives to oil, particularly nuclear energy.” And it was Enel, alongside the institutions, which took up these new and important challenges and set out toward a diversification of energy sources and a greater attention to energy conservation; corpo-rate strategy planning the construction of new nu-clear plants and hydroelectric pumping plants was redefined, as well as a greater use of geo-thermal sources in the country.And in the following decade, the challenges of the diversification, energy independence and safety of the supply went hand-in-hand with those of the defense of the environment: the Brundt-land Report placed the need to combine economic growth and environmental protection before the eyes of the world. The Earth Summit in Rio, the twentieth an-niversary of which we will be celebrating this year, consecrated these principles worldwide, forever changing the course of world energy development. Therefore, renewable energy projects began to take shape; the program of experimentation and inten-sification of the use of renewable sources begun in those years was the embryonic form of what – 30 years later – has become one of the leading com-panies worldwide in the field of generation from renewable sources: Enel Green Power which, with an annual production of about 22 billion kilowatt hours generated from water, sun, wind and geo-thermal sources, is now able to meet the needs of

over 8 million households each year and to pre-vent more than 16 million tons of CO

2 emissions.Meanwhile, following the European directives, in the Nineties, the path leading to the opening of the energy market marked a new turning point for our company which, with privatization, was about to become a multinational and was begin-ning to look beyond national borders, in an Italy which had now become a major country of the G8. So Enel has opened its borders and therefore is now present in 40 countries, bringing electricity to 61 million customers thanks to the work of more than 75,000 employees. Concerning the evolving natio-nal and global context, our company responds eve-

ry year with new commitments to improve environmental qua-lity through the development of more and more clean rene-wable energy, to provide access to electricity through the “Ena-bling Electricity” program, to its Corporate Social Responsibility, technological innovation and excellence. Commitments that our company, alongside the citizens, institutions and custo-

mers, has faced and will continue to face with the dedication and passion that have characterized us in this first half century of life and allowed us to become the “One Company” that we are today. What we are today, but above all, what we will be to-morrow, is the result of the work, sacrifice and pas-sion of all those women and men in these 50 years who have made Enel one of the largest electricity companies in the world. It is to all the co-workers and colleagues of yesterday, today and tomorrow that we proudly wish to dedicate this important anniversary, a thank you in advance for the effort that they continue to devote to the growth of this company. A commitment felt by everyone. A perso-nal commitment, for a company and for everyone.

What we are today is the result of the work

and passion of all those who have made Enel one of the largest electricity companies

in the world

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n the early Sixties, Italy was in the midst of its economic “boom.” These were the years in which well-being was being

constructed with work and passion, and electricity became an instrument of emancipation and social development for the country, as well as the engine of economic growth. To bring electricity to all of Italy, providing the energy for growth and indu-strial development, had become a key objective of the country. That is why, in 1962, Enel, the National Board for electricity, was founded through the uni-fication and nationalization of 1,270 enterprises. This was the beginning of an adventure that has seen us, alongside our fellow citizens, achieve an ambitious project of excellence that drove the de-velopment of the country at the turn of the centu-ry, accompanying the era of the well-being of millions of people. Enel also fostered the creation of a competitive electricity market that, starting from the Bersani Decree of 1999, has opened up to a hundred Italian and foreign competitors. A market where every customer is free to choo-se their supplier and, thanks to new technologies, can choose how best to consume energy. The electricity sector is also an important driver of development for the Italian economy, as evidenced by the approximately 110 billion euros invested in new production facilities and distribution networ-ks, from the liberalization to date, of which almost 40 billion euros were invested by Enel. This virtuous process has thus allowed the electricity industry to achieve the level of one of the most efficient in the world. Enel’s path is based on continuous innova-tion and it has responded to the socio-economic and industrial needs presently facing Italy, and in all the other countries where it operates, with huge investments and new technologies, leading to the creation of revolutionary projects such as the elec-tronic meter, which we pioneered. At the start of this century, for the first time in the world, the elec-

tronic meter was installed on a large scale for all customers, taking the first step in the evolution of turning the electricity distribution network into a smart grid, turning the consumer into an active par-ticipant and promoter of a conscious use of electri-city. These 50 years have been punctuated by chal-lenges met and ambitious goals achieved, and have consolidated our position as a major multinational energy company. I am convinced that the best way to celebrate this anniversary is not only to remem-ber these successes, but to emphasize our sense of proximity to all our stakeholders and express our vision of what the future will bring over the next 50 years. A story that encourages us to look at our daily work in a longer perspective which has its roots in the past, spreading and nourishing a thriving plant

made of innovation, ideas, and initiatives that, together, will shape the future. A future that is already a reality for Enel today: a large international group, pre-sent in 40 countries on four con-tinents, participating with the same commitment that it has guaranteed in 50 years of Italian history, concerning one of the great challenges facing huma-nity: to produce abundant, com-

petitive, and sustainable energy to meet the needs of a growing demand, especially in emerging and developing countries. An efficient and reliable mul-tinational company, solid and steadfast with re-gard to its shared values , which operates in a global economic, social, and political scenario that is un-dergoing profound changes. All the paradigms to which we were accustomed up to now, in fact, seem to have been reversed. The world economy is expe-riencing a generalized and permanent transforma-tion that is seeing positive signs in geographic are-as that were on the margins of the global economy until just lately, and the phenomena of stagnation in mature economies. The growth rates of Asian countries are now an established phenomenon, and are also joined now by Latin America, and we

an ambitiousadvEnturE

editorial

Ed

by Fulvio Conti

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an adventure that drove the development of the country at the turn of the century,

accompanying the era of the well-being of millions of people

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will soon see the emergence of African economies. This rapid development of emerging countries is accompanied by strong population growth, which will bring about a more balanced redistribution of wealth. A new concept of globalization is emer-ging: economic power is no longer focused on just a few nations, but instead, ever-increasing interde-pendence between geographical blocks is being created, in which everyone contributes to a funda-mental part of the economy. Large corporations are operating in this scenario with an increasing institutional weight, because of their supranatio-nal dimension and for their ability to offer concrete solutions to the needs of the population. This has been confirmed by a recent study by “Fortune” magazine, which identifies 40 companies among the world’s top 100 economic entities. In this new role, corpo-rations are increasingly sitting at the table of the great world leaders, discussing, on a par with them, the problems of the planet. So they are not just credi-ble and effective protagonists to sustain growth over the medium to long term, but real partners in the dialog with the commu-nities and stakeholders. Enel is the protagonist of this new model of global gover-nance. We have been involved as an active partner in the last three G20 summits (Seoul, Cannes, and Los Cabos), the United Nations Global Compact, the conferences in Cancun and Durban on the cli-mate, and the Earth Summit “Rio+20.” The incre-ased importance of Enel has led to its nomination for President of Eurelectric, the association of elec-tricity companies in Europe, and to dialog on a par with other European institutions. In particular, we continue to be a protagonist because we are experts at our job: producing, distributing, and selling elec-tricity and gas, through an integrated presence in many markets, an increasingly international mana-gement, know-how combined with a strong wish to improve the performance of our systems, and our

continuous endeavor for operational excellence. For Enel, the key word is “responsibility,” namely, the ability to create shared value with the communi-ties in which we are involved by showing a passport of transparency. We are also a leader in sustainable growth and development, as demonstrated by our presence in the Global Compact Lead, the Dow Jones Sustainability World Index, and the FTSE 4 Good. Responsibility that goes along with big plans for the construction of energy infrastructures that can support the growth of the countries where we operate, ensuring the well-being and development of local populations. Much has already been done, putting into act concrete projects that demonstrate our attention to the communities where we work, focused on reducing a gap that still exists in many

parts of the world: access to elec-tricity. Looking back on these 50 years of history, many are the successes and achievements, but Enel will continue to look to the future by addressing the new challenges that lie ahead. An era in which electricity is present in every moment of people’s lives, becoming culture and custom, and fully rising to the challenge of environmental sustainabili-

ty. Where the generation will be emission-free and more geographically dispersed, CO

2 emissions will be eliminated by technology, and electric mobility will make transport more efficient and the air of our cities better. An era in which the smart grids, just like the Internet, are able to convey information about the consumer, making citizens the protago-nists of sustainability. Enel will always continue to be a good citizen in the communities where it ope-rates, promoting sustainable economic growth and continuing to adopt a clear pattern of widely-shared behavior and to dialog with all our stakeholders. Be-cause, as evidenced by our mission, “Enel is a servi-ce to the community, respecting the environment and the safety of persons, with a commitment to ensuring a better world for the next generations.”

for Enel, the keyword is “responsibility:”

the ability to createshared value withthe communities

in which weare involved

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quarterly magazine published byCodice Edizioni

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© Codice Edizioniall reproduction and translation rights for the published articles are reserved

editorialboardEnrico Alleva (presidente)Giulio Ballioroberto CingolaniPaolo Andrea ColomboFulvio ContiDerrick De kerckhoveNiles EldredgePaola GirdinioHelga NowotnyTelmo PievaniFrancesco ProfumoCarlo rizzutorobert StavinsUmberto Veronesi

editorin chiefGianluca Comin

editorialdirectorVittorio Bo

publishingcoordinationPino BuongiornoLuca Di Nardo Giorgio GianottoPaolo Iammatteo Dina Zanieri

managingeditorStefano milano

editorial teamSimone ArcagniDavide Coero BorgaElena ComelliDaniela mecenateLuca morenaNicola Nosengoroberto rizzoLuca SalvioliGiorgia ScaturroCecilia Toso

translationsSusanna BourlotLaura CulverGail mcDowell

illustrationsElena La rovereSeltz

art directionand layoutundesign

pictureeditorwhite

exclusive italian distributionmessaggerie Libri spat 800 804 900

promotionIstituto Geografi co DeAgostini spa

Oxygen is an idea by Enel, to promote the dissemination of scientifi c thought and dialogue.

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The proTagonisTs recounT...Five decades, six presidents: challenges, goals, changes of direction on the Italian road to electrification, as told by those who personally made Enel’s history. The direct testimony of Francesco Corbellini, Chicco Testa, and Piero Gnudi, and memories of Vito Antonio Di Cagno, Arnaldo Maria Angelini, and Franco Viezzoli by those who lived important years alongside them: Gennaro De Michele, Vittorio Vinci, and Alessandro Ortis.

storiesSt

018

Vito AntonioDi CagnoIn the famous film Dead Poets Society, an extraordinary Robin Williams, playing the incredible professor John Keating, recites a beautiful poem by Walt Whitman that starts with the question, “O me! O life! What good amid these?” and ends with the answer, “That you are here, that life exists and iden-tity, that the powerful play goes on, and you may contribute a verse.”It is a response which celebrates the poet as a timeless man. Such was Vito Antonio Di Cagno, the first president of Enel. Besides being a great manager and a fine politician, when he was the mayor of Bari, De Gasperi said of him that he was the best Italian mayor he had ever met and that he was a passionate poet.I do not wish to remember him with one of his poems, which would show an intimate side that is not very representative of him in this context, but instead, with a professional testimony that I found in the historical archives

of Enel in Naples where, amid thousands of meters of shelves, many of the papers of Di Cagno’s secretariat have been collected.Perfectly preserved among these papers were hundreds of job ap-plications to the SME, the company of which Di Cagno was president before taking the same position at Enel. It is a surprising correspond-ence that reveals the anxieties and fears of prospective workers, fire-men, machinists and electricians wishing to join the SME. Many let-ters are written by the mothers of boys, promoting the talents of their children, their strength, their will-ingness to work and also their po-litical docility. Handwritten in un-certain calligraphy, there are often real pleas in which, rigorously ad-dressing the director with the for-mal “You,” they tell of family trou-bles and explain the importance it would have for everyone if their boy were to have that “position.” Well: it is surprising to see that

Di Cagno responded personal-ly to all the requests with grace, clarity and, not infrequently, by inserting an encouragement to move forward. All the letters were personalized yet similar in struc-ture and signed in his own hand.That is no small matter at a time when there was no electronic writ-ing, no “copy and paste” and no scanners, and it is the sign of a hu-manity, a respect for others and a style that, like poetry, resists time.

A memory of Gennaro De Michele

Di Cagno hasa respect for others and a style that, lie poetry, resists time

he is an industrial manager and was president of the southern Electricity company, finelettrica and Enel from 1963 to 1973. he was named to the order of merit for labour (Knight or “cavaliere del lavoro”) in 1967.

1963

019

Arnaldo MariaAngeliniFrom my experience of professional life at his side, I am convinced that Professor Angelini would not have liked a memory that directly involved his person, but rather, that he would have preferred a connection to the concrete results of his management activities at Enel: I will refer to these. With the establishment of the new State Electricity Board, Angelini, the Director General, fully utilized all of his “science” for the immediate national coordination of the various transferred power plants and simultaneously laid the programmatic foundation for the subsequent development of the future integrated production/ transmission/distribution system, overcoming the ex-isting fragmentation among the 1,270 nationalized companies: in other words, he designed the architecture of Enel. This is the context in which the National Control Center of Rome for the optimal and coordinated operation of power plants and the primary network soon came into being, a center that, since its first creation, has been expanded with the use of modern telecommunications technologies, so as to become one of the most advanced in the world. And it was this extraordinary action of coordination that, in the early months of 1963, allowed for the best use of the available energy in Italy. It also avoided restrictions on con-sumption that had become necessary in the other European countries affected, like Italy, by the reduction in hydropower availability due to the intense cold and a strong increase in the demand for electricity. The “Professor” was proud of his creation, for the information it could provide, in real time, on the de-mand for electricity and its penetration into the life and customs of the country.Back then, one of the most anticipated expectations of nationalization was rural electrification. Today, we speak of the “quality” of customer service, but 50 years ago, nearly two million Italians were not able to use any electricity at all. However,

certain data was lacking, so Enel started a thorough investigation throughout the country. This was the program-ming tool for all the intervention plans in the sector which, already in 1971, led to halving the problem and then, the total electrification of the country. Meanwhile, public opinion’s preoccu-pation for the environment increased, a new challenge that Enel faced with various measures regarding the power plants and the creation of special en-vironmental research laboratories: re-search and laboratories, a theme that was dear to Professor Angelini, who had started his career in 1931 as the head of the laboratory of measurements and electrical tests at the company TERNI. In Prof. Angelini’s vision, as provided by the nationalization law, the shares of Enel were to maintain the mini-mum operating costs consistent with the required efficiency of the service.And, in fact, economies of scale made possible by the size and by the unity of the institution, the coordinated opera-tion and modernization of equipment, the unifications, the diffusion of automa-tion, the reduction in fuel consumption per kWh and in energy losses, helped to substantially reduce the cost per kWh. Therefore, Enel, as noted by Prof. Cas-tronovo in his preface of the book Fifty years of electricity industry in Italy, de-spite many difficulties, “has managed to carry out the tasks that were assigned to it, and thus legitimize its raison d’être.” I am sure that Professor Angelini would have been very pleased with this judgment. On February 16, 1979, the Enel Board of Directors named Angelini honorary pres-ident of the institution. Even in this new capacity, he continued to observe the same number of work hours as ever; not infrequently, he would ask me for a com-ment, an opinion, about publications, reports, conferences; these requests, just as when he was “in service” and in keep-ing with his style, were always perfectly structured and in his own handwriting.

A memory of Vittorio Vinci

Engineer and professor of general electrical engineering at the university of cagliari and the university of rome, he was president of Enel from 1973 to 1979, the vice president of terni and general manager of cnEn.

1973

With the establish-ment of the new State Electricity Board, Angelini laid the foundation for the coordination of the various trans-ferred power plants, overcoming the existing fragmenta-tion among the 1,270 nationalized compa-nies: in other words, he designed the architecture of Enel

020

FrancescoCorbellini

The proposal to take the chair of the presidency of Enel was made to me in December of 1978, while I was doing something completely differ-ent. Over the course of twenty years, with the help of a group of young engineers and using Italian equip-ment, we had set up a series of power plants scattered throughout devel-oping countries, with a total capac-ity comparable to that of Enel. Prodi explained to me that the rationale behind his choice was that I most likely had the talent to construct the power plants that were required in Italy, as well. Among endless difficul-ties, we began to create our nuclear energy plan. We started by putting the Caorso Nuclear Power Plant in order. We prevailed upon our best nuclear engineers to explain our rea-

sons to the country and brought to-gether a group of enthusiastic young people to maintain relations with the municipalities of the future sites. Toward the end of my term of of-fice, the nuclear program had taken shape. The first group at Montalto was ready for the fuel to be loaded; construction of the second plant was going smoothly. We had determined the location for the plant in Trino Ver-cellese. All this for 5,000 MW and with the consent of the local authorities. I remember having slowly entered the vessel of the first group at Mon-talto with great satisfaction. For lack of room, Professor Angelini had to wait outside for me. A few days later, the Chernobyl disaster occurred, sweeping away the Italian nuclear program. The fuel was never loaded.

Over the course of twenty years we had set up a series of power plants scattered throughout developing countries, with a total capacity comparable tothat of Enel

an engineer, he has built power plants all over the world with italian machinery. he was chairman of Enel from 1981 to 1987. he is the co-author, with franco velonà, of Cursed Chernobyl. The true history of nuclear power in Italy.

1981

021

FrancoViezzoliNew Year’s Day at the plant: this is how Viezzoli, at midnight of every December 31st during his presidency of Enel, toast-ed the new year with the staff on duty in one of the several electric power plants around the country. A symbolic gesture to refer to for a memory of his presidency. The New Year’s Days at the plant, in the “engine room,” are emblematic of the priority attention that Viezzoli devoted to the “human resources,” the proprietary supporting pillar of his corporate vision. Therefore, the professionalism and spirit of belonging of all his collaborators, at every level, were the basis of his fostering a culture of personnel management that, while also paying attention to construc-tive dialog with trade union representa-tives, moved toward: transparent selec-tion mechanisms; training programs and refresher courses open to the maximum participation; careers related to merit; advanced tools of social assistance; in-dividual and collective motivational contexts that were exciting and competi-tive at a national and international level. The New Year’s Days evoke the final bal-ance statements of the past and plans for the future. As to the balance sheets, these reflect Viezzoli’s commendable achieve-ments; as to the future, it will reflect the at-tention and creativity that he has dedicat-ed to development strategies. He felt “his” Enel to be one of the main engines of pro-gress for the social, economic and indus-trial development of the whole country: investments, continuous improvement of the quality of services for businesses and families, lessening the disparity be-tween the North and the South of Italy.Also worth mentioning in regard to the valuable managerial legacy of Viez-zoli: the financial restructuring of Enel; the absorption of the sudden “nuclear cancellation;” the timely relaunch-ing with new replacement produc-tion; the strengthening of internal and cross-border networks; the reduction

of business costs and inefficiencies; the suitable policies for the diversifica-tion of international supplies of fuel; the gradual improvement in financial ratios. With regard to strategies for the future, the propensity of Viezzoli was constantly for innovative and advanced choices con-cretely supported by significant invest-ments in research, technological develop-ment and system, with technical solutions increasingly attuned to environmental protection: gas cleaning and more ad-vanced efficiency for the thermoelectric power plants; logistics for new and envi-ronmentally-friendly fuels, including coal and liquefied gas; the designing of land-scaping for the plant premises and lines; the boosting of the geothermal sector and the solar and wind power plants; enhanc-ing communication to promote a more efficient use of energy; initiation of stud-ies for off-shore plants and for electric-ity imports from Africa to Europe, while strengthening the Mediterranean links. With this vision to promote pro-active in-ternational collaboration, he promoted dozens of cooperation agreements with other countries, thus laying the founda-tions that have been useful for subsequent international business developments; he contributed to supporting the European energy integration processes, favoring the establishment in Rome of the Associ-ation of European electricity companies, Eurelectric; he encouraged the activities of the latter as a key interlocutor of the European institutions on the path toward an internal “single market,” the Energy Community of Southeast Europe and the agreements for the Mediterranean. Therefore, the New Year’s Days at the Enel power plant with “his people,” so proudly felt, can help us to remember Viezzoli as a manager and a man who admirably suc-ceeded in combining management skills and strategic vision in the fulfillment of a presidential term that still benefits and will continue to benefit our country.

A memory of Alessandro Ortis

He felt “his” Enel to be one of the main engines of progress for the social, economic and industrial development of the whole country

president and cEo of finmeccanica (1976-86) and president of Enel from 1987 to 1996, he was an advisor to finsider, italsider italcantieri, banco di santo spirito and credito italiano, alfa romeo, assonime, abi and friulia regional financial friulia.

1987

022

ChiccoTestaThe first important letters I received as the President of Enel bore two sig-natures: that of Carlo Azeglio Ciampi, who at the time was the Minister of the Treasury of the first Prodi government, and that of Pier Luigi Bersani, then the Minister of Industry. Both letters were short and to the point. “Prepare Enel for privatization,” said the first. “Pre-pare Enel for the liberalization of the electricity market,” said the second. Thus began Enel’s “second life.” The first, with the company com-pletely owned by the State as a mo-nopoly and which began in 1962, had achieved its objectives. All the Italians had been connected to the electric-ity network and the service provided was of good quality. Then began the second part of its life, which would see Enel become a company open to private capital and in competition, in Italy and around the world, with other electricity companies both large and small. A phase that is still ongoing. The reaction of all those at Enel to this change was extraordinary. Both goals were achieved over a three-year period, with the entire company, its

executives and its employees engaged in this transformation. The result was a company that combined, as it still does today, high technical know-how and engineering capabilities with new managerial and financial expertise. Enel is one of the great resources of this country. I cherish a wonderful memory of it. For the quality of its employees, its sense of belonging and discipline. Its ability to cope in a com-pact way to the many emergencies that inevitably flock to such a complex work. I am pleased to be a part of it.

1996

Enel is one of the great resourcesof this country.I cherish a wonderfulmemory of it, for its ability to cope in a compact way to the many emergencies that inevitablyflock to such a complex work

among the founders of legambiente, he was president of Enel from 1996 to 2002. he is the author of return to nuclear power? italy, energy and the environment. he created the blog newclear.it and has been president of the italian nuclear forum since 2010.

023

PieroGnudi

I lived and worked at Enel from 2002 to 2011. These were years of great change: the shock of the attack on the Twin Towers was still strong and the process of the globalization of the economy and finance was deve-loping in every region of the planet. The management that has governed Enel in recent years has had to in-terpret the processes of change and make choices that have radically changed the structure of the com-pany. Until 2002, Enel was a major energy company that operated al-most exclusively in Italy. It was plan-ning its development by diversifying its activities in areas outside its core business, such as telephone and water services. In 2002, the new ma-nagement decided to change stra-tegy by focusing on electricity and gas, and started to focus on foreign markets to create growth prospects for the company. Turning a large corporation into a national reality

involves a profound process of tran-sformation, especially for those who work there, due to the need to con-front models, attitudes, languages, markets and regulatory systems that are very different from one another.This difficult transition has provi-ded indisputable evidence of the quality of the professionals and the people who work at Enel. Without their spirit of sacrifice and a strong sense of pride in belonging, it would not have been possible to build one of the most important “natio-nal champions,” able to compete on the global market today. Enel is now present in 40 countries: more than half of its EBITDA is genera-ted outside the country and it is one of the largest electricity com-panies in the world. There are still major challenges that Enel must face but the work begun in those years laid the foundations for long-lasting and sustainable growth.

These were years of great change: the process of the globalization of the economy and finance was developing in every region of the planet

minister for regional affairs, tourism and sport, he was the president of Enel from 2002 to 2011, a board member and vice president of unicredit bank, as well as the president, member of the board of directors and on the Executive committee of confindustria. he is a member of the council for relations between italy and the united states.

2002

18,250daysof life

Of all the scientifi c discoveries, electricity is the one that has changed daily life and industrial growth the most: in Italy, this strong infl uence is shown by the fact that its economic deve-lopment has coincided with the birth and fi rst fi fty years of Enel.Electricity has been supporting the nation’s boom, instrumental fi rst to national unifi cation and later to its internationalization.It has accompanied the techno-logy bringing appliances, TVs,mobile phones and the concept of “network” into all our homes. It has helped in revising boundaries in a global perspective and energy is preparing to be one of the major players affecting the future. 18,250 days of Enel’s participation in the historical and social changes, along paths that run parallel at times and at others, are interwoven.

timelineTl1962

365sTarT

1963

730

1964

1,095

1965

1,465

1966

ENEL“The House approved the law that nationalized electricity.” With these words, on December 6th the journalist Jader Jacobelli announced, on a TV news broadcast, the birth of Enel, the National Electric Power Company, and the nationalization of 1,270 private companies

SCHOOLIn Italy, the unifi ed middle school is instituted, attendance is mandatory until 14 years of age

rIGHTSThe Civil rights Bill is passed in the United States

ITALIAN SCENEItalian cinema is living its golden age: prizes and awards make Fellini’s 8 and ½, Pietro Germi’s Divorce Italian-style and De Sica’s Yesterday, Today and Tomorrow famous

SUBWAYThe subway run by electricity is inaugurated in milan: the fi rst 12-kilometer stretch is Lotto-Sesto marelli

ENErGY IS GrOWINGThe National Dispatching Center is founded in rome; Enel has 13 million users and produces 67% of Italian energy.

SNAPSHOT OF AN ErAPolaroid presents fi lm for instant color snapshots. The logo celebrating the fi fty years of Enel is based on that icon

rELAXED HOUSEWIVESWashing machines and refrigerators sales boom: womens have more time for themselves

THE OVErTAkINGThe Italian economic miracle is hungry for energy and production is experiencing an epochal overtaking: fossil fuels exceed the historic hydroelectric energy and Italy is the fi rst European country to build thermal power plants of industrial size and the third in the world for nuclear power capacity

BrIONVEGAAlgol 11 television set is awarded the gold medal at the Biennial of Industrial Design in Ljubljana

rED BOOkThe Chinese Cultural revolution begins while the fi rst bombs are dropped by Americans in Vietnam

PErSONAL, NOT POrTABLEOlivetti makes the fi rst personal computer in the world, the P101. It weighs more than 35 kilos

ImAGES THAT UNITEIn Italy, 5,480,000 televisions are registered: from North to South, the same language is spoken and the same images are seen

by Oxygen

The BeaTLesWith their fi rst single, “love me do,” the global sucess of the beatles began. in the counter-culture style of the british group, one can glimpse the dawning of the protests soon leading to confl icts between generations and lifestyles.

inDiaindira gandhi becomes the prime minister of india

MarTin LuTher King anD John F. KenneDYmlK gives the famousI have a dream speechand JfK is assassinated

1962—

birth of enel

19681967

2,5552,190

1969 1973

2,920 4,380

1970 1974

3,285 4,745

1971 1975

3,650 5,110

1972 1976

1,825 4,015

STUDENT PrOTESTSWith the occupation of the Sorbonne in Paris, the student movement is spreading across Europe, leading to major social and cultural changes

PEACE & LOVEIn the United States, the hippie phenomenon spreads. Consciences are now looking for a new well-being that is not just economic, that will soon involve the environment and, therefore, energy.

NEW COUrSESalvador Allende is elected President of Chile

4 TO 330 million Italians watch the soccer game of the century on television: Italy beats West Germany 4 to 3 in mexico

UNITY IS STrENGTHCorsica, Sardinia, Ischia and Elba are connected to the electricity network of the peninsula with underwater cables in the Tyrrhenian sea

UNITED AND CONNECTEDThe North and South of Italy are connected by the power line in the Apennines

TOWArD THE INFINITEOn July 20th, man takes his fi rst step on the moon. At 10:17 p.m., all Italians are following the event live on TV, causing a peak energy demand

WOODSTOCkThe biggest concert of all time

380in the mid-sixties, a project to expand and rationalize the network of transmission and interconnection at 380 kv is initiated

ENErGY CrISISThe war of Yom kippur starts: the price of oil increases and the energy crisis explodes. In Italy, the fi rst of the “Sundays on foot” take place as part of the austerity program and studies are begun on alternative industrial solutions

PEACEThe armistice agreement between the U.S. and North Vietnam is signed

GrEEN FEELINGProliferation of the fi rst manifestations of environmental awareness

INTErCEPTEDThe Watergate scandal erupts

END OF AN ErAThe last episode of Carosello (Carousel) is aired

ILLUmINATIMilleluci goes on the air for the fi rst time, a TV program that uses light bulbs for measuring the satisfaction of the audience

ALL IN THE NETWOrkThanks to Enel, 99% of the country has electricity

@The scientist ray Tomlinson invents orave, a code capable of transferring fi les from one computer to another

SAVINGS PErSPECTIVEThe National Energy Plan is launched and on April 30th of the following year, the Italian Parliament enacts the fi rst legislative action on energy saving

DEmOCrATIC SPAINFrancisco Franco dies and the process of democratization in Spain begins

richarD niXonrichard nixon resigns from the offi ce of president of the united states

TWiggY LaWsonthe image of models changes: now young thin women, dressed solely in miniskirts, are all the rage

1979 19851984

7,665

1980 1986

8,0305,8405,475

1981

8,3956,205

1982

8,7606,570 7,300

19831977 1978

6,935

ISLANDS OF DISCOrDThe Falkland Islands War breaks out and the crisis of the Argentine regime begins

WOrLD CHAmPIONSThe Italian national soccer team wins the World Cup in Spain

WIND IN SArDINIAExperimenting in the wind sector begins, with the project Vele/Sails in Alta Nurra in Sardinia

mACApple presents the fi rst computer of the macintosh series

HOT WATErEfforts continue toward renewable sources with the promotion of solar water heaters

kILL ‘Em ALLmetallica’s fi rst album is released

LArGE NUmBErSThe production of thermonuclear energy is equal to 3,200 Gwh, and there are 22 million Enel users

COLOr TVThe rai offi cially begins to broadcast in color

THE FIrST APPLESteve Jobs and Steve Wozniak present a revised version of their Apple I. All of the electronic components are inserted in a beige plastic box with a monitor and keyboard

ENErGY AND ENVIrONmENTFor the fi rst time, Enel’s energy plan includes a section on the environment and safety

CHErNOBYLOn April 26th, an accident in the Chernobyl nuclear power plant causes the leakage of radioactive clouds

NIGHTmArES IN INkThe fi rst issue of Dylan Dog is published in Italy

NEW POWEr PLANTSThe thermoelectric power plants are in operation at Porto Tolle, Torrevaldaligia Nord, Fiumesanto and the pumped hydroelectric plant at Entracque

rIVErS OF ELECTrICITYThe net generation of Enel’s hydroelectric power reservoir rises to 6,034 GW

OPEN EUrOPEThe Schengen agreement is signed, which 12 years later will lead to the free movement of citizens between the signatory countries

ELECTrONIC WINDOWSThe Windows operative system is inaugurated

NEW INSTITUTIONSFirst elections of the European Parliament

IrON LADYmargaret Thatcher is elected Prime minister of the United kingdom

ANYWHErESony puts its walkman on the market and, together with Philips, invents the compact disc. Two instruments that will take music anywhere

BrIGHT AS THE SUNEurelios, the fi rst concentrating solar power plant in the world, comes into being and is the fi rst to provide the network with electricity produced by the sun

saTurDaY nighT FeVerJohn badham’s movie Saturday Night Fever accompanies the birthof disco

e.T.spielberg brings the most human of aliens to life on the silver screen

23.82Enel has 23.82 million users

9,8559,490 10,220 11,680

1987 1990 1993

10,585 12,045

1988 1991 1994

10,950 12,410

1989 1992 1995 1996

9,125 11,315

mEETING THE DEmANDEnel strengthens its electricity grid, extending over 61,000 kilometers to meet the energy demands of the country, in part to follow the World Cup Championship games

FrEE TO...mandela is freed and apartheid formally comes to an end. The Schengen agreement is enforced

mAGIC mOmENTSThe World Soccer Championship games begin, with West Germanyvictorious

FrEESTYLEBorn on August 5th, Federica Pellegrini was the fi rst Italian woman to win a gold medal in swimming, in the 200 meters freestyle race at the Olympic Games in Beijing in 2008. During her career, she has also won four world titles and is the holder of the world records of the 200 and 400 meters freestyle

NEW BEGINNINGWith the fall of the Berlin Wall, the beginning of a new global era

HOLY WArThe Intifada begins

AmONG THE GrEATThe world’s largest photovoltaic power plant is built in Serre Persano and Enel participates in the summit of the E7, the group of the seven major electricity companies worldwide

AWArDSFederico Fellini is conferred with an Oscar for lifetime achievement

THE CLINTON ErAThe war in Bosnia begins and Bill Clinton is elected President of the United States

UEThe Treaty of maastricht is signed: the European Community will shortly become the European Union

DEmOCrACYThe fi rst multi-racial elections are held in South Africa

POLITICAL ENTrEPrENEUrS Communications magnate Silvio Berlusconi begins his political career

THE COmING FUTUrEIn the U.S., Amazon is registered as a company

THE GO AHEADThe Italian parliament allows the liberalization of the electricity sector. Enel is moving toward privatization

kUWAIT IS FrEEThe Gulf War comes to an end

WWWThe computer scientist Tim Berners-Lee publishes the fi rst website in history. The World Wide Web is created

WAr AND PEACENegotiations that will bring peace to Bosnia begin, rabin is assassinated in Tel Aviv

LET’S PLAYSony launches its Play Station

Diego arManDo MaraDonathe phenomenal argentine soccer player helps naple’s team win their fi rst championship

1,270the process of acquisition by Enel of 1,270 electricity companies is concluded

1998 20042003

14,965

1999 2005

15,33013,14012,775

2000 2006

15,69513,505

2001

16,06013,870 14,600

20021997

14,235

SINGLE CUrrENCYThe euro is put into circulation

EUrOPE WITH kYOTOThe European Union ratifi es the kyoto Protocol

GLOBAL COmPACTEnel adheres to the Global Compact, a U.N. initiative that unites the best companies in the world involved in developing a sustainable global model

NEW FrIENDSFacebook is created and the fi rst episode of Lost is broadcast in the U.S.

CHAmPIONS AGAINThe Italian national soccer team wins the World Cup in Germany, beating France

NEW ImAGEEnel is represented by a new logo, a tree, which emphasizes its connection with nature, renewable energy sources and the company’s branching out

LOOk AND YE SHALL FINDThe birth of Google: the Internet becomes an essential tool for fi nding information

AmONG THE FIrST FIFTYEnel is admitted to the group of the 50 leading European companies that combine business with plans and principles of social and environmental sustainability, and is the only public utility

HELLO; WHO’S THErE?Wind, the telephone company owned by Enel, France Télécom and Deutsche Telekom, is created

BOUNDArIESItaly joins the Schengen system and Hong kong becomes a Special Administrative region of China

CONSCIOUSNESS The world begins to reexamine its attitude toward the environment with the kyoto Protocol

HOLY YEArThe 2000 Jubilee is heldin rome

ZErO EmISSIONSEnel helps in drawing up the European program, “Zero emission platform”

NEW FUTUrE?The kyoto Protocol becomes effective and Abu mazen succeeds Arafat

POPE mEDIAPope John Paul II dies and his funeral becomes a press and social event broadcast by the media around the world

IN A NEW LIGHTThe Bersani Decree establishes the liberalization of the Italian electricity sector and Enel makes its debut on the stock market with almost 4 billion shares on the market

A BIT mOrEThe world’s population reaches 6 billion people

mETErS GrOWEnel begins to install electronic meters revolutionizing relationships between producer and consumer, and the first step toward the Smart Grids

NEW POWEr PLANTSThe architect De Lucchi designs Enel’s power plants in Porto Corsini and Priolo Gargallo

SEPTEmBEr 11The United States, and the whole world, is shocked by the attack on the Twin Towers

MarK ZucKerBergafter the creation of facebook, Zuckerberg is declared the world’s youngest billionaire

inTernaTionaLiZaTionEnel begins its process of internationalizationin spain, the united states and canada

MiDDLe earThthe fi rst fi lm of the Lord of the Rings trilogy comes out

029

17,15516,790 17,520 17,885

2007 2008 2009 2010 2011 2012

16,425

FEWEr EmISSIONSFrom 1990 to 2008, Enel reduced the specifi c emissions of CO2 from 618 g/kWh to 462 g/kWh.

GrEEN POWErThe birth of Enel Green Power, the company of the Group working in the fi eld of renewable energies

YES WE CANObama is elected, the fi rst Afro-American President of the United States

CHINESE GAmESAmid thousands of objections, the Olympic Games are held in Beijing

SmArT mOBILITYThe E-mobility project in rome, milan and Pisa provides for the distribution of hundreds of charging points for electric cars in public and private places. Inauguration of the solar-thermodynamic power plant, Archimede

rEVOLUTIONSProtests begin that will give rise to the Arab Spring

TOUCHSCrEEN NOTEBOOkSteve Jobs presents theiPad and Amazon beginsits activity in Italy

SUN’S STrENGTHIn Florence, the fi rst solar and hydrogen power plant is opened (Diamante)

ArCHILEDEThe project of street- lighting based on LED technology, Enel Sole, is started

A 3-D WOrLDThe movie Avatar comes out

LOW CONSUmPTIONThroughout the EU the incan-descent bulb is replaced by the compact fl uorescent bulb

IBErIAN-AmErICAN ENELEnel expands its international presence in the Iberian Peninsula and Latin America with the acquisition of Endesa

50years

of energy

18,250

ENErGY FOr EVErYONEEnel underwrites a commitment with the U.N. to combat energy poverty: with Enabling Electricity, it provides expertise and innovation to break down the economic, social and technological barriers to access to electricity for millions of people

EVErmOrE CrOWDEDThe world’s population reaches 7 billion

95%95% of the meters in italy have become electronic

conTinues

From 2012 to future

ENErGY OFTHE FUTUrEIn the future electricity will be the thread that will connect people to one another, with the places they are moving in and with the technologies they will be using. of many aspects of our daily lives:

TECHNOLOGYAll technologies, heretofore industrial, will acquire a “personal” dimension.

BOUNDArIESThe geographical boundaries will lose some of their rigidity, becoming a relative and more fl exible concept.

TrANSPOrTElectrical mobility will be widespread and effi cient, recharging will be faster and the battery will last a long time.

ENErGY PrODUCTIONThanks to renewable energy in particular, the distributed generation of energy will emerge.

WOrkTechnological and electrical development and social changes will make working from home a common practice.

HOmEHome automation will be a reality, devices will develop a smart interaction with people, and each home will become a small, self-suffi cient “spaceship.”

rIGHT TO LIGHTEnel Green Power signs an agreement with an NGO of India, the Barefoot College, to ensure the right to light for rural communities in South America

50 YEArS AND NOT FEELING THEmEnel is celebrating its fi rst 50 years with its presence in 40 countries, on 4 continents, 61 million customers, more than 97,000 mW of installed capacity and almost 2 million kilometers of power lines

LaDY gagaat the 2010 mtv music awards, lady gaga wins 8 awards out of 14 nominations

030

scenarios

Sc

thE silEntrEvolution

by Valerio Castronovo

Enel’s contribution to the electrification and the social and economic development of the country: since its nationalization,50 years of investments and projects that have been interwoven

with the history of Italy.

It was an English newspaper, the “Daily Mail,” that coined the term “economic mi-racle” to define the process of development which had transformed Italy into an indu-strial country in the early Sixties. That is how surprising the rate of growth of our industry seemed, hot on the heels of the “German lo-comotive,” even then projected toward the summits of the Europe-an economy. What was driving it was the strong increase in exports of some consumer products, thanks to their high quali-ty and competitive prices. Meanwhile, due to the fact that Italians possessed a little more job income and even some hard-earned savings for their expen-ses, the domestic demand had also for some time given tangible signs of greater vitality and substance. This turning point, after the precedent influx of motor-scooters, was marked by a fleet of small cars that took the spotlight and which were pla-ced on sale for the first time through the in-stallment system borrowed from the United States after World War II. Thus, the era of mass motorization began also in Italy, with

the success of the 600 model and other cars. The “four wheels” were then joined by other durable consumer items, led by a lot of brand new appliances also purchased through easy installments. Of course, this phenomenon was less striking than the roaring of the cars that were filling the streets. But the entrance of refrigerators, dishwashers, and washing ma-

chines into the homes of Italians marked the libera-tion of a growing number of women from the daily toil of housework. They were no longer forced to go shopping every single day to have fresh food; they no longer had to devote so many hours to washing dishes and clothes. Fur-thermore, instead of the old stoves, they could now use a set of four burners on their bright and shiny

new stoves. And for new families that were forming, the housing built in recent years had both new heating systems and water heaters. In short, a “silent revolution” was conside-rably improving the material conditions of existence of Italians, even concerning these very minute aspects of daily life. It was in this scenario, where people were buoyed up by an

the availability of an adequate volume of

electricity for many people of the south meant not only the acquisition of

decent living conditions but also new jobsand employment

opportunities

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incipient wave of well-being due to the eco-nomic boom, that Enel – the public business entity arising from the nationalization of the electricity industry – made its debut in 1963. But only a part of Italian families had emer-ged from a long period of privation and hardship. Many others were struggling, not

always managing to make ends meet at the end of the month, and still others lived mo-stly in a state of humiliating poverty and de-gradation, especially in the South and on the Islands. So much so, that in these parts of the country, many families lived in hou-ses that were still entirely without electricity. The main task assigned to Enel by the go-

vernment was, therefore, to expand their network of transportation and distribution, to provide lighting and power to those pe-ople – more than two and a half million of them – living in tiny municipalities and the most remote locations where, in the past, companies had not considered it ap-propriate to extend their electrical service. In fact, the electrification of the whole count-ry was the last piece that was missing for the completion of a genuine unification af-ter more than a century since the birth of the Italian State. And to say that, ever since 1902, Francesco Saverio Nitti, an eminent expert on conditions in the South, in a pa-per which bore the emblematic title The Conquest of Power, hoped that the expan-sion of electricity would mark the begin-ning of a new era of prosperity for a country like Italy, lacking in fuels and raw materials.The availability of an adequate volume of elec-tricity for many people of the South who, in the mid-twentieth century, were not provided with enough or had none at all, meant not only the acquisition of decent living conditions

it was in this scenario, where people were buoyed up by an incipient wave of well-being due to the economic boom, that Enel made its debut in 1963

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the silent revolution | oxygen

but also new jobs and employment opportu-nities. Thanks to a widespread, efficient elec-trical system, profitable industrial and service activities were able to be initiated: this would help to determine the redemption of the “de-pressed areas” from an endemic situation of economic backwardness and social hardship. These expectations were not disappointed after the establishment of Enel. From the Sixties onward, the wide gap existing between the electricity consumption per capita in the North and the South was slowly shrinking, fol-lowing the expansion of facilities in the South and a policy of low tariffs for household con-sumers. Of course, even though the electrifi-cation could not fill all the other gaps of the South compared to other more advanced re-gions of northern and central Italy, at least it helped to make these less jarring and acted as a driving force to push the South, during the Seventies, along the road to modernization. Now that we are accustomed to living in a scenario marked by an abundance of shining lights, even many of the more elderly people have forgotten how our towns, even the ma-

jor ones, appeared fifty years ago. Apart from a few central neighborhoods, the streets and squares of the outskirts were, in fact, poorly lit by a few public streetlights; and only the most luxurious shop windows were brilliantly illuminated. Not to mention the many pro-vincial towns, where, at sunset and the first darkness, a kind of curfew went into effect.The possibility of being able to use electricity that was more abundant and cheaper (becau-se Enel had been required to lower the rates charged in the past by private companies by 40%) changed the overall appearance of nu-merous towns, making them brighter; the old trams were replaced by more capacious and faster trolleybuses; and it substantially leng-thened the nightlife, allowing for the opening of new places for shows and entertainment.In fact, since then, the dynamics of electri-city have assumed rates that are substan-tially similar to those of the major European countries. And in the Eighties and Nineties, the correlation became tighter and tighter between the increase in electricity con-sumption and the improvement of the li-

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ving standards of Italians. The use of elec-tricity spread in an ever broader and varied range of machine tools, as well as television sets and telephones, appliances, and new computational and writing instruments.This second wave of electrification coin-cided with the formation of a so-called “affluent society,” characterized by new models of behavior and consumption pat-terns that were more specific and less uni-form, depending not only on the level of income but also on the expectations and personal orientation of the individual users. On another front, the growing demand for electricity was making it imperative to cover requirements, to implement more substan-tial investments, and to expand facilities for the next generation with a higher degree of automation. Consequently, the production flows and services were expanding, with the radiating of complementary effects for the economic and social benefit of the country. Thus, if a driving force like electricity had inaugurated the second industrial revolu-tion, the one that arose in the late nineteenth and early twentieth centuries has continued to be the leitmotif for excellence in econo-mic growth. Starting from the last two deca-des of the twentieth century, it has, in fact, been fueling the remarkable developments that have appeared with the combination of electronics and computer science, with the advent of the computer. This has created

the third industrial revolution, the one we are experiencing today, in an era marked by the increasingly influential and versatile ap-plications by techno-science and the global spreading of the Internet and multimedia. Italy has kept pace with these changes of scenario and perspective from which, in the wake of globalization and the Network’s ca-pillary market expansion, a multipolar and increasingly interdependent world has emer-ged, projected by the new frontiers of tele-communications and micro-engineering. So for Enel, a new and extremely challen-ging chapter has begun. Since the goals of public utilities that were the priorities of the original statute have long been achieved, and it has been operating since 1993 in a li-beralized electricity market at the national and European level, Enel has arranged to do more than just make its energy resources more diversified and flexible. Today, it is also undergoing a phase of reorganization of its structures and of project development that must meet the challenges posed by glo-balization and the equally crucial need for environmental regeneration. All of this, in fact, requires a corporate culture that embra-ces change, internationalization, research, and experimentation. This is the only way in which it will be possible to not only enhance their potential and increase their know-how, but also to lay the foundation for a model of sustainable and responsible development.

the possibility of being able to use electricity that was more abundant and cheaper changed the overall appearance of numerous towns, making them brighter; the old trams were replaced by trolleybuses; and it substantially lengthened the nightlife

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the silent revolution | oxygen

036

ElEctricity andmEdia: accElErators

of sociEty

Years ago, I was very impressed by an advertising campaign by Enel based on the awareness of the use of energy resources. Actually, it was about giving value to everyday gestures: for exam-ple, how to put a plug in a socket or turn on a gas burner and discovering that, concealed behind this seemin-gly natural gesture, there was a rather significant organizational effort. In one commercial, two girls draw th-ree dots into which they then plug in their portable stereo to make it work. In another, a hiker carves notches on a stone and, turning it as if it were a knob, a flame appears. Instead, in yet another commercial, there is a wor-kman whose greasy fingers leave three small fingerprints on a pole, into which he connects a small stove to warm a beverage. There was also, if I remem-ber correctly, one of a child on a beach

with his father and grandfather, play-ing with an electric train powered by a socket drawn in the sand with a stick. So, one of the characteristics of con-temporary technology is the produc-tion of objects in which the technology itself likes to stay hidden and with it, all the theoretical work that produced it. It is a paradox described by the philo-sopher José Ortega y Gasset: industrial civilization is suffering from a deep ingratitude toward its own miraculous discoveries. Once they have been in-vented – the telephone, mobile phone, radio, television, the computer – they are assimilated as if they were natural. When we are driving a car or turning on a light bulb, we are not asking oursel-ves about the internal combustion engine or incandescence. Then it only takes some triviality – a small blackout, a lamp that does not turn on – for the

discouragement to upset us. This is precisely the paradox of the light bulb. In 1881, when the ballet Excelsior was staged for the first time at La Scala, and was also highly successful, the Milane-se bourgeoisie in the audience knew very well what was being celebrated: the celebration of progress, the trium-ph of science and the light bulb. They were celebrating the growth and not the decline, the “magnificent and pro-gressive future” and not the culture of N.I.M.B.Y. (Not In My Back Yard). That “great Italian ballet” was a huge specta-cle, with an impressive, pharaonic and sumptuous stage set and 450 people onstage. With enthusiastic emphasis, it told of the modern wonders of the nineteenth century, such as the electric light, the steamship, the telegraph, the Suez canal, and the Mont Cenis tunnel. It celebrated the glory of the shining

The link between electricity, speed, and communications has become increasingly significant and complex in recent history.

By now indispensable to one another and part of daily life, these elements are the spark of continuous social change.

by Aldo Grasso

scenarios

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light that freed the poor Slave from the darkness of the evil Dark Times. Electricity has literally accelerated eve-ry phase of social development. The media, especially TV, can therefore be compared to the fastest means of tran-sportation: just like the train revolutio-nized society in the nineteenth century, allowing long distances to be covered in a relatively short time, and like the automobile accelerated transport in the past century, so has the TV (perhaps electricity’s most prestigious applian-ce) helped to increase the speed of social life, making the changes more rapid, and shrinking or actually eli-minating the geographical distances. Speed is the true experience of moder-nity, and the means of transport have only partially implemented it. It was precisely the mass media to standardize the experience of speed: the telegraph,

radio, and then, above all, television. “My dear friends near and far, good evening, wherever you are.” With these words of welcome, Nuncio Filogamo

used to inaugurate the first editions of the Sanremo Festival, broadcast by Rai right from the start, in the Fifties. In this appeal of his to viewers near and far,

these words summed up the bond that had developed between speed, the me-dia, and modernity. In fact, the specific technology of the media has the ability to eliminate the transmission time of images and sounds, thereby making it immediate, allowing for the cancella-tion of spatial distance and the possi-bility for spectators scattered around the world (near and far) to simulta-neously experience large media events.Thoughts of the philosopher Paul Vi-rilio come to mind, who, in his Speed of liberation, reflects on the dyna-mics of “near-far” generated by the consumption of TV: “The paradoxes of acceleration are numerous and di-sconcerting, in particular the first of these: drawing closer to the ‘far’ pro-portionally distances from the ‘near,’ from the friend, the relative... This inversion of social practices which is

one of the characteristics of contemporary technology is the production of objects in which the technology itself likes to stay hidden and with it, all the theoretical work that produced it

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nium. There are many reasons why this Enel commercial is interesting. What is most striking is the remix work on the audiovisual materials: an unpublished story narrated by tapping into Enel’s hi-storical archive. Thus, we see the lights of San Marco in Venice, the electrifi-cation of the country, the laying of sea cables for connecting the islands to the mainland, and many other events of dif-ferent scales. The intent, in this case, is not nostalgic. The airplane floating in the sky, however, conveys the sense of history: history that is moving forward, proud of the progress that technology and energy bring with them. A simple story, obviously, that may be presen-ted differently on the media platforms (another reason for interest in the campaign). And on YouTube, shared on Facebook, there was a special, lon-ger version of the film shown on TV. The world of communications is at the center of a deep and radical change, something that recalls the emphasis of the ballet Excelsior: the telephone, as

already manifest in the media (ports, railway stations, airports) has been fur-ther strengthened, radicalized by the new means of telecommunications.” Enel’s “Power to the People” campaign still insisted on forgotten gestures to help us understand the “speed of li-beration.” Before, we used a handle to raise the car window. Before, we rose continuously from the couch to chan-ge channels on the TV set. Before, the tape in the cassette would always get tangled in the heads of the recorder while we tried to find the beginning of the song. Before, we would wave the instant snapshot around, waiting for the immortalized image to appear. Now, everything has changed and tho-se I have just described are forgotten gestures. Among these, there is also the expectation of receiving the ener-gy bill in paper form in the mailbox, because now everything is online. And so, at this point, the campaign has become interactive by exploiting the enormous potential of the Internet.

In short, in just a few decades, the grea-test revolution in the world of commu-nications has been achieved, and has also affected our intellectual and spiri-tual life (according to a Baconian apho-rism, three inventions have changed the face of the world: the art of printing, gunpowder, and the compass; so then electricity is jointly communication, arsenal, orientation). Electricity can-not be considered as just one of many elements of technological innovation in a complex causal relationship, be-cause the change wrought by its po-wer transformed the very nature of the relationship of cause and effect. In the “little airplane” campaign, a small paper airplane is the protagonist that, season after season, passes throu-gh the phases of recent history. The sto-ry adopted the rhetoric of circularity: at the beginning of the Sixties, a child draws a car on a sheet of paper and then turns it into a paper airplane. The latter crosses landscapes and eras, arri-ving today to a child of the new millen-

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electricity and media: accelerators of society | oxygen

we have known it and used it for years, is no longer the phone; newspapers are no longer just newspapers; they are chan-ging their very skin and content, the TV is no longer the TV, even the computer will soon no longer be the computer. Driving this evolution is the pheno-menon of convergence. What exactly is it? Technically, convergence is the combination of several tools of com-munication, a fusion made possible by digital technology. Each medium is no longer intended to carry a single type of service, but is capable of delivering different contents (photography, radio, telephone conversations, TV, music). Convergence means using a single in-terface (the computer, for example) for many information services, i.e., to go from watching a TV series to enacting a banking transaction, from reading a newspaper to the supervision of a part of one’s house. But convergence also me-ans that the future of communication is something that goes far beyond com-munication and involves anthropologi-

cal categories. Convergence is the voice of the manifold, of the indiscernible, and of the hybridized. Thanks to the ease of travel, migration, and globali-zation, the whole world converges, is mixed, tending toward hybridization.But how do we equip ourselves to ad-dress such an upheaval? Do we con-sider technology as a valuable gadget we cannot do without? Do we act as we did toward electricity? The truth is that in the communications world today, dizzying operations are being perfor-med that could only ever have been imagined by a few writers of science fiction: the first Macintosh came out in 1984, the official birth of the Internet was in 1991. Convergence also means that we have gone from a vertical type of culture (ordered according to a hie-rarchy of values) to a horizontal one (all content is immediately available), based more on associations, links, and free connections than on the traditio-nal transmission of knowledge. Worse than an electric shock, much worse.

according to a baconian aphorism,

three inventions have changed the face of the world: the art of

printing, gunpowder, and the compass;

so then electricity is jointly communication,

arsenal, orientation

vEry WhitE lightsadvertising posters

for lamps by osram, Zeta, tungsram, and Westinghouse, and

the Electric company for the governorship

in the twenties and thirties (source: Enel

historical archives).

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«When we“lit up”italy»

interview with ettore bernabei

“Let me tell you a story about parallel tracks, the ones we - Rai and Enel - traveled together for the development of the country.” An interview with Ettore Bernabei, former director general of Rai from 1961 to 1974, an exceptional witness who tells us about Italy in those “black and white” years, how “we did it” and how we can still do it.

by Daniela Mecenate

There is a blue book still in draft form on his desk. His book. What is it about? Ettore Bernabei, 91, replies without hesitation: “It’s about the future.” He smiles, peering from under his glasses: he knows that you would not expect a book about the future from a man his age, but rather, one about the past. An intense past, one we have come here to have told to us by the former director general of Rai, dominus of the State TV from 1961 to 1974. A period which saw Italy changing at breakneck speed, quickly passing from the “economic miracle” to austerity, from the sweet Sixties to the first cold bullets of terrori-sm. The years of black and white TV, of Carosello, Canzonissima, Corrado and Pippo Baudo. And the great journali-stic investigations by Ruggero Orlando. “At first, they were mainly years of overwhelming development,” Bernabei says, “and I remember the route taken by all the other players in this growth very well: from electricity to the te-lephone networks. I clearly remember the birth of Enel in 1963, in fact, I re-member not only its birth, but also the pregnancy.” And he smiles again, this elderly manager, a former journalist, in his study corner where the wooden desk is clearly dominated by the awards he has received over the years and which are hanging on his wall. Various

In

awards pertaining to Catholic culture. “It would have been impossible,” he continues, “to consolidate democracy and the Italian miracle without the cre-ation of Enel. Why? Because up to that time, there had been a system of priva-te electric companies, associated with one another, which thought of bringing electricity to where it was cheapest. The logic was that of industrial profit, thus supplying illumination for the ci-ties and the most important centers: in 1963, only 60% of the country had electrical service. Only a ‘State’ com-pany, led by other logics, could bring electricity to wherever it was needed at that time; even to the most remote regions of an Italy that was still rural and poor, still made up of small vil-lages on isolated hilltops. Thanks to this, it was possible to bring economic development to the country and social development to the people, as well as a fair distribution of opportunities. Not surprisingly, within a very short time, Italy was declared to be ranked fourth among the world’s most industrialized countries.” And, thanks to this, radio and TV also experienced impressive development, gradually arriving in more and more homes, for more and more families: “At the beginning of the Sixties, there were less than four mil-lion subscribers, and when I left Rai in

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1974, there were more than 12 million.” Growth that, thus, went hand in hand with that of the electricity company and the TV company. “It’s true, Rai and Enel were going along parallel tracks and growing together, but abo-ve all, helping the development of the country together. An interweaving that was capable of bringing econo-mic prosperity and transmitting va-lues, to standardize the language and dispense knowledge on subjects that were hitherto little known, such as the condition of the poorer populations in the most remote areas of the country.”And if electricity helped TV, in like manner, TV also helped electricity: “We made inquiries concerning large areas still without electricity and the need to nationalize energy, explaining the reasons to the Italians. And then ... Well, I also remember funny episodes! Like the time when Enel noted with concern that there was an impressive peak consumption of electricity in a single night. You know what had hap-pened? It was July 20, 1969, the landing on the Moon: the Italians were still awake watching TV until late at night.”Ettore Bernabei leans back in his armchair. He seems to be thinking “Those were the days!” “Those were years,” he continues, “when the count-ry’s development was guided by a very precise model, the mixed economy of public companies that helped priva-te companies. Through the galaxy of IRI companies and through the ‘State’ companies such as Enel, it was possi-ble to provide low-cost, semi-finished energy, electricity, highways and te-lephone service to all the private com-panies that wouldn’t have been able to grow otherwise. That’s the only way we could have ever done it. With a general commitment.” And for the senior ma-nager, this is the model that, in spite of contemporary analyses, should be good enough for the present situation. “It is the only way. That’s the only way we will be able to do it again: we are a country that has slipped into the C2 Series; we can return to the A Series only with a model of collective commit-ment.” But he concedes that different models prevail in the current market conditions, “privatizations and the lo-gic of the globalized market prevail.”Then his thoughts go back to the past, to that journey along the tracks of growth. “In those years, big compa-nies such as Enel and Rai had another merit, hardly remembered at all: the development also assured the purcha-

sing power of many Italians. In the early Sixties, in fact, the State-owned companies agreed on wage increases of 21-22%, even in the absence of infla-tion, and were gradually followed by all the others. And to think that the unions had asked for a 15% increase! It was a turning point for the purchasing po-wer of thousands of families, who from that time on, began to be able to afford a television, a record player, and even a ‘500’ car, or other genuine luxuries like ... a washing machine!” Goods that seem normal now, but which were not at that time, if we think that, in 1963, only 2% of the population owned that household appliance which was the most coveted by housewives in Italy.

Many years have passed since then. For the former director general of Rai, other professional experiences have followed; he turned ninety (celebrated with his TV appearance on La Storia siamo noi - History is us) and recently celebrated his ninety-first birthday. Ettore Bernabei, meanwhile, has gone back to TV and once again, light – Lux –is part of his life: in 1992, he founded Lux Vide, a company producing televi-sion dramas and films for TV, headed today by his daughter Matilda, and of which he is president: “Honorary Presi-dent”, he is keen to stress. “At a certain age, one has to be satisfied!” In recent years, Lux Vide has produced TV seri-es and successful movies, such as Don Matteo, Pinocchio and Coco Chanel, to name a few. And when asked what he thinks of television today, then yes, he hesitates for the first time. He stops to think. “Not all of it is to be criticized but certainly not everything deserves to be saved, either. Even today, great investigative journalism is being done, space is given to series that have so-mething to teach the viewers. Some

“it would have been impossible to consolidate democracy and the italian miracle without the creation of Enel. because only a ‘state’ company could bring electricity to wherever it was needed at that time, even to the most remote regions of an italy that was still rural and poor.”

043

included Marelli and Brionvega.” No one was spared, not the old “Lion,” not even the current politicians. And he ta-kes issue with those who have little spi-rit of cooperation, who do not believe in Italy and “want to divide the count-ry into many small regional clams.”But now that the interview with this bit of Italian history is over, now that this exceptional witness has taken us back in time amid nostalgia and socio-economic analyses, now that we have explored the parallel tracks that the two companies have traveled together on the train of the country’s growth, one curiosity still remains: what does his book, that blue book still in draft form there on his desk, talk about? “I alrea-dy told you: the future. Starting from an analysis of the last century, which was exceptional with regard to scientific discoveries and human progress, but terrible for the wars and dictatorships that have marred it. Then it proceeds to talk about how we could build our near future, the years ahead. I am op-timistic. But the message is always the same: we can only do it together, working in a systems approach, com-bining resources, strengths and ener-gies.” Still parallel tracks? “Absolutely.”

programs are rather trite, needlessly violent and transgressive, devoid of content. Those that really irritate me are the reality shows: they are a scam, a fraud, it’s not true that there’s impro-visation, but just lousy two-bit scripts performed by wretchedly bad actors.” It seems like a century has surely gone by since “his” TV, the kind of TV without color but not at all colorless; without reality shows but where there truly was realism; TV with the first advertising when “commercial TV” did not even exist yet; the slightly prudish kind, in which the height of transgression were the legs of the Kessler twins. And spe-aking of color, Bernabei will have no truck with the story that color TV only came to Italy in 1977, three years after its use by Rai. He says, “We were already ready in 1972 but some parties applied the brakes, saying that there was no need for color TV in Italy. They did so because they didn’t want to disappoint the interests of those foreign compa-nies that were not yet ready. The result was that, in the meantime, the Italian companies that manufactured televi-sion sets, which had been ready and waiting for a long time, failed. These

rai tvthe sets of Solletico

(tickling – a children’s television program

aired in the nineties on rai uno) and

Piazza Grande (the rai 2 program

broadcast from 2003 to 2008).

«when we “lit up”italy» | oxygen

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scenariosSc

the crisis asa metamorphosis

“The crisis cannot be interpreted in terms of crossing through it, such as a caravan in the desert, but rather as a metamorphosis; the system is becoming something else. In order to find the key to the problem, there is a need to clarify the cultures that, within the crisis, are being imposed upon Western societies. Cultures intended as out-and-out ideologies concerning training, that constitute the matter to be sifted so as to single out possible proposals for the future.”

by Aldo Bonomi

There is no doubt that the mechanisms of the gre-at transformation from which the crisis originates have reached a turning point. Push has come to shove after a long cycle of economic and political transformations that have disrupted the equili-brium established among the political, social and economic spheres. What closed with the shock of 2008 was a long cycle of development, natural-ly at differing speeds, in which the geo-economic importance of the great nations of the world have gradually changed. A major transformation, in the words of K. Polanyi, that has shaken the ethical and political, as well as the economic, foundations of the capitalist production mode. It is no longer enough to ask what to produce and for whom, or for what market. The crisis of economies based on debt and the environmental limit to development ensure that the merchandise will have to increasin-gly incorporate the question “To what purpose?” A shift in viewpoint that, in the first place, applies to that particular commodity, which now is energy. We must therefore understand that the crisis can-not be interpreted in terms of crossing through it, such as a caravan in the desert, but rather as a me-tamorphosis: the system is becoming something else. In order to find the key to the problem, the-re is a need to clarify the cultures that, within the crisis, are being imposed upon Western societies. Cultures intended as out-and-out ideologies con-cerning training, that constitute the matter to be sifted so as to single out possible proposals for the future. So let us start by saying that, precisely

concerning the crisis and its possible outcomes, it seems to me that there are at least three ideologies at work today that should be taken into account. The first ideology claims that we are facing a real crisis of the system, a general derailment that is rooted in the relationship between civilization and nature, and which is no longer sustainable. The crisis is systemic and, therefore, the shortcuts that once again propose the same structure of the twentieth century welfare system today are highly unworkable. The “ideological” output is the pa-radigm of the “happy decline,” according to the economist Serge Latouche, a kind of “pedagogic catastrophe” in which the environmental limit itself is the wall that the crazed fireball of capita-lism is running into. A paradigm that still exists within the elite and metropolitan intellectual circles, but whose influence cannot be underesti-mated when the likely emergence of phenomena of medium-term structural unemployment will force the Western societies toward a “decrease” in consumption, as real as it is “unfortunate.” Tangent to this, there is also the position of the youth movements that have grown up in and around the crisis, those of the “99% vs. 1%,” a sort of inter-classism of the multitudes, showing how the current crisis touches not only the proleta-rian classes of the twentieth century but also the middle class, crushed in the grip of policies of public austerity and of finance, which no longer allow the market results to “trickle down” in the markets. A position that directly raises even the

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question of the emergence of a modern capitalism of networks seen as an alternative to the public na-ture of goods such as energy, mobility, water, etc. The second position is typical to the circuits of the technocratic elite who propose themselves today to be directly governing, claiming the need only for “structural adjustments” in the markets, to accompany the system to its new market equi-librium. For a short time, it was also a credible hypothesis at the beginning of the century, with a financial system that was presented as a chan-nel of integration in markets open to everyone. All this within the crisis of a policy which has not been able to take this opportunity to redesign its role concerning the economy in a way that is not so secondary. To give the impression of giving way to the myth of the government of statesmen. A passage that we should also consider in terms of the balance within the bourgeoisie of this count-ry, because it is evident that the rise of central and metropolitan elites, such as those that constitute the current national government, in many ways marks the decline of the hegemony of a widespre-ad neo-bourgeoisie of molecular and territorial capitalism. Creating tension in the relationship between mass market and democracy, now gre-ater than ever since the birth of the mass liberal democracies. Tension that brings up the issue of an “aborted constitution,” in the sense of the European Constitution. A position having para-doxes that can hardly be overcome unless it fully

EnEl and buttErfliEsAre you really sure that a floor can’t be a ceiling? is a quotation by maurits cornelius Escher which became the title of the work by liesbeth bik and Jos van der pol, who won the 2010 edition of Enel contemporanea. “this model,” explain the two artists, “is a temporary home for butterflies, seen as the ultimate actors of the idealistic ideas of transformation, change, and recycling, characteristics inherent in their life cycle.”

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the crisis as a metamorphosis | oxygen

fuels that are an alternative to oil, which is being depleted. On the other hand, there is a second va-riation of green economy, linked to the idea of a diversity of models of capitalism and, in the case of Italy, which is at the root of our territorial and localist production system. A territorial, grass-roots green economy that follows three channels.

The first is the evolution of molecular capitalism, as an adaptation of the productive economies of small and medium enterprises concerning the environmental compatibility of their production, of a light innovation of the manufacturing proces-ses and design of the products. The second, and more cultural one, the evolution of a tendency toward “villager” living, the tendency to a better quality of life typical of the metropolitan spleen of large segments of the middle class, the reflec-tive protagonist since the Nineties of a post-ma-terialist evolution of lifestyles and consumption. And which creates the social and cultural basis for phenomena such as Slow Food, Eataly, the

embraces the prospect of European democracy.And so, between these two poles, can there be any space for a laborious “third way”? I think that, in the metamorphosis of a capitalism that is being revamped, one can think about a perspective for the future by using the concept of “green eco-nomy.” An oft-abused concept with very strong margins of overlapping also concerning the two alternative ideologies just mentioned. A green economy is primarily capitalism that incorpora-tes the environmental limit into its process of ac-cumulation. It is the driving force of a new cycle. It is an issue that also incorporates the topic of consumption moderation and a new Keynesian strategy of new investments. These are the two starting points to which attention must necessa-rily be paid. The idea of green economy, if loca-ted in the actual conditions of the capitalist cycle that we are experiencing, can help us to rebuild a development project on new foundations that combine the idea of progress with the idea of limit. However, to avoid misunderstandings, the concept should be “unwrapped,” disassem-bled from the inside. Because in hindsight, we can identify at least three versions which take on contradictory meanings and political outcomes.First of all, green economy in terms of world eco-nomies is also a huge financial bubble (the next one?) with the financialization of food commo-dities and the panic-buying of agricultural land in Africa and Latin America in order to produce

Within the metamorphosis of a capitalism that is being revamped, one can think about a perspective for the future by using the concept of “green economy”

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networks and academies of culinary taste proli-ferating in the territory, etc. A phenomenon that reactivates and channels the local market tradi-tions, somewhere between economics and social representation, organizing production chains and that has important democratic and participato-ry opportunities at the same time. Third, grass-roots green economy is also a new kind of work, intended both as a problem of the new quality of work and as a new social composition with new needs. It is the emergence of mutualism practi-ces that address the impact of the debt crisis on daily life concerning questions about protection and participatory management of the common resources, of networks, of credit itself, by orga-nizing at a local level in the cities and territories. However, what is truly needed at this stage is the ability to synthesize these trends, transforming them into a hypothesis of new compatible deve-lopment. A difficult task to be carried out accor-ding to the usual logic of the proliferation of bu-siness. Instead, what is needed is a middle way, one that is not reducible to “small is beautiful,” adopted by the subjects who have structures and resources to deal with it by accepting the technolo-gical challenge, and who have management teams and the organization to “think long-term” by be-coming the driving forces in a new industrial po-licy. So a vision of the green economy, somewhere in the middle between finance and territory, that for lack of a more adequate label I would define as neo-Keynesian, and which, as far as I am concer-ned, is the real challenge if we want to get the re-lationship between economics and development with its feet back on the ground. This means thin-king of a third industrial revolution, the purpose of which would be to push forward the frontier of technological discontinuity, for example in terms of the energy issue, to replace an era of fossil fuels and chemical derivatives. But to do so, there needs

to be the establishment of infrastructures and poles that have the appropriate mass impact. A perspective that directly calls for a subject such as Enel: because today, it embodies both a tradition of national function and an evolution into a big player in the capitalism of networks. And because energy is the first good that, in view of new deve-lopments, incorporates a dual nature of being a good that is now financialized and a common good that has systemic functions. It is clear that all this means rethinking the public role, outside the box, of old patterns of the IRI and the neo-liberal rhetoric. A role that lies somewhere between the center and the periphery of the system. In Italy, we have centers of excellence on this front, we are not at year absolute-zero. At the center, there are other large companies as well as Enel, such as Eni, whose function should be discussed; in the territory, the network of multi-utilities inherited from the old municipal ones account for possible anchor points. A neo-Keynesianism should have two conditions: one is the de-financialization of finance, leading banks to reinvest money to pro-duce goods as well as other money. All these argu-ments are possible if politics and society, placed in the midst of the flows and places, can manage to poleax finance in a logic of development loans. The second is the definition of a pact between ter-ritorial capitalism and the big players in the ener-gy sector; a pact that should be the real engine of a new industrial policy. This means having the ability to imagine a neo-Keynesianism that is not centralized in the hands of the nation-state but rather, the ability of centers of excellence to act as fertilizer for the local green economy (labor, com-mon goods, cities) with a new center-periphery re-lationship. A challenge that primarily affects those who, like Enel, as to history, size and collective fun-ction, can decide whether to play the game of glo-balization as a kingpin of a new system strategy.

a green economy is primarily capitalism that incorporates the environmental limit intoits process of accumulation. it is the driving force ofa new cycle

049

buttErfly EffEctit is said that the

slightest flutter of a butterfly’s wings is

capable of causing a hurricane on the other

side of the world. this is the “butterfly effect,” but – as far as the work of Enel

contemporanea 2010 is concerned – it

should be rethought in terms of sustainability: a small daily action can

lead to large changes in the system.

the crisis as a metamorphosis | oxygen

050

in-depthId

When managementmakes a difference

An Italian industrial history that is worth telling. The story of a strategic cultural and organizational transformation that allowed to govern tumultuous changes and turn them into growth opportunities.

by Massimo Bergami, Pier Luigi Celli and Giuseppe Soda

Less than 15 years ago, Enel was a monopolist domestic operator. To-day, although still called the National Agency for Electricity, its identity has changed dramatically. Since 1998, the most important national electri-city company has managed to under-go an extraordinary metamorphosis.

The faces, investments, technology and stories that have appeared in re-cent years have helped to turn a struc-tured public body into a global enter-prise and a leader in the field. The fact that Enel could manage this evolution

is not something to be taken for gran-ted: the history of privatization and major industrial changes is littered with failures or incomplete transi-tions, in Italy and worldwide. How can Enel’s success be explained? How did a monopolist company manage to deal with the crucial challenges of deregulation? Much evidence indi-cates that this is one case where the evolutionary dynamics go well beyond the sectoral explanations, a case from which many lessons can be learned about management and the transfor-mation of businesses in conditions of high uncertainty and environmen-tal dynamism. An industrial history that allows us to draw up a “minimal manual” of what it means to lead a company through transformation, without losing its roots along the way. The reconstruction of this story of-fers a perspective that contradicts the idea of a purely “adaptive” or passive management with respect to the exo-genous pressures, as described by

many economists. Precisely because embedded inside the deep transfor-mations largely beyond control of the company, the case of Enel shatters a deterministic and reductionist inter-pretation of strategic management. It exalts a perspective of the company and the management action as pro-active actors capable of implementing strategies which largely contribute to determining the market contexts, wi-thout necessarily having only to adapt to or passively suffer from the dyna-mics. In other words, the visible hand of the managerial decisions theorized by Alfred Chandler, in the case of Enel, has clearly expressed the counter-intuitive effects, transforming what was just unlikely into what is possible. However, another and more intere-sting explanation can be added to this first reading. Not only has the company been able to proactively transform the pushing from a hostile environment; it has ably surpassed all the phases of tension and critical moments in its hi-

the visible hand of the managerial decisions theorized by alfred chandler, in the case of Enel, has transformed what was just unlikely into what is possible

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story by developing an adaptive capa-city of a higher order that has allowed it to continue producing skills and greater knowledge, instrumental to the anticipation of the dynamics and challenges in the contexts in which they found themselves operating.The most obvious example of these business skills has been the combi-nation of decisions and actions that preceded and followed the process of liberalizing the energy sector, which started in 1999 with the Bersani decree.This governmental measure required Enel to implement corporate sepa-ration for the production, transmis-sion, distribution and sales activities, as well as the obligation to reduce its production capacity. In line with the decree, the company had to initiate and rapidly complete a process of “or-ganizational breakdown” that led to the creation of Enel Production, Ter-na and Enel Distribution. The most disruptive aspect for Enel, however, was the obligation to reduce its pro-duction capacity: in a relatively short time, the company had to renounce an ability to produce energy equivalent to that produced in Belgium and Hol-land. Its share in the domestic market for electricity went from 77% in 1996 to 26% in 2008. The effects of this external process of downsizing were dramatic: in four years, from 1998 to

2002, the ROI (Return On Investment) went from 15.4% to 5.9%, in a situa-tion of a domestic market without any possible option for future growth. Faced with the “perfect storm” trig-gered for the most part by exogenous factors, the most likely scenario that arose was that of a “home involu-tion”: the management could have reorganized the company on a smal-ler scale by invoking non-responsi-bility concerning the choices of the inevitable decline, the imposition from the outside of a fate of down-sizing and marginalization in the competitive international game that globalization has been generating. The managerial logic, instead, has worked in the opposite direction. Contrary to many expectations, Enel managed to ride the exogenous dynamics with a process of organi-zational, business and technology transformations that quickly made it one of the most active global pla-yers in the energy sector. And only four years after the collapse of the return on investments, the ROI was back to the pre-liberalization levels. So Enel has done it then. But how did it manage to escape from the trap of the “home involution”? One of the keys to its success was the cultural transformation that had begun in the mid-Nineties, and that still casts its

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when management makes a difference | oxygen

“make sense of it,” a crucial factor in complex organizations, but rather to convey this meaning and the direc-tion undertaken to the entire com-pany. In other words, they have fun-ctioned as “suppliers of meaning and direction,” thus aiding the speed and effectiveness of the transformation. Also crucial and strategic has been the ability of Enel to obtain a strong legiti-macy from institutional stakeholders, often represented by the governments of nations in which an energy pro-ducer was operating, but which in the case of Enel, also included the community and financial markets. Naturally, every point of arrival is a starting point. In the context of globa-lization and in the context of the geo-political scenarios that are emerging, the game of energy, together with that of food, perhaps marks the field of challenge for people and nations in the years to come. Today, Enel has taken its first step toward becoming a protagonist in a challenge that is still to be played out, which it can either win or lose. The ambition is there, as are the internal energies, as well. Fi-nancial resources need to be balan-ced quickly, the strategies refined, but more importantly, it will be the imple-mentation of these that can make a difference, knowing that the context may change again so very quickly.

the market. The story of Enel is em-blematic: a context of potential crisis has been turned into an opportuni-ty for evolution and global growth. Alongside the dynamic capabili-ties and cultural transformation, Enel has always sought an effective balance between the dynamics, ex-ploration (market and technologi-cal) and continuity, and the excel-lence and reliability of service by strengthening and consolidating its technical know-how which is at the heart of its operational capacity.The three groups of leaders of the top management of Enel in the last 15 ye-ars have, in different ways and com-pared to non-overlapping agendas, altered and led the way in which the whole organization has construed the context, the market, the world. The corporate leadership acted not just to rationalize the events as they appea-red. Instead, it favored the “how they could be.” What was perceived as a threat has become opportunity, what seemed improbable is now possible. The sense-making of the manage-ment, in particular, has clearly been shown in the most critical moments and at the most uncertain junctu-res related to the challenges that the company has had to deal with from time to time. The leaders, however, have not limited themselves only to

positive effects. In fact, the company had been preparing in advance for the impact of liberalization by aban-doning the logical operations of the public body and changing its orga-nizational structure according to the dynamics of the market. For example, between 1996 and 1999, the num-ber of managers was cut in half and internal careers were decided upon based on the criteria of profitability and efficiency rather than seniority.In the years of liberalization, then, Enel tried to balance the reduction of its share of the electricity market by hunting for new business oppor-tunities and becoming a multi-utility. When the multi-utility scenario fa-ded, management quickly succeeded in refocusing its activities on its core business of energy by launching a major international expansion plan to recover market shares abroad that had been forcibly abandoned in Italy. In the second half of the last decade, Enel established itself as a global player through the acquisi-tion of important foreign companies. Enel’s management, in fact, has un-derstood that the context and flow of history required the “body” to beco-me an “enterprise”: an epochal cul-tural change that has transformed Enel into an organization able to au-tonomously navigate the high seas of

Enel’s management has understood that the context and flow of history required the “body” to become an “enterprise”: an epochal cultural change that has transformedEnel into an organization able to autonomously navigate the high seasof the market

054

electricity is prosperity:growth of gDp and electricity consumption per capita from 1962 to today

norTh aMerica

europe

LaTin aMerica

1962

1972

76%

15%

48%

69%

37%

120%

55%

135%

61%

80%

47%

175%

100%

160%

96%

69%

51%

196%

182%

204%

144%

114%

71%

177%

246%

236%

157%

166%

117%

1982

1992

2002

2012

norTh aMerica

LaTin aMerica

europe

norTh aMerica

LaTin aMerica

0%0%0%0%0%0%0%0%

055

gDp

electricity consumption

Electricity consumption data source: statistical review of World Energy bp (kWh per capita)gpd data source: maddison historical statistics (international dollars per capita)

oceania

aFrica

asia

1962

37%

29%

32%

93%

129%

177%

69%

35%

64%

60%

114%

64%

319%

327%

144%

355%

329%

203%

107%

134%

113%

205%

261%

82%

34%

33%

46%

39%

1972

1982

1992

2002

2012

oceania

aFrica

asiaasiaasiaasiaasiaasiaasiaasiaasia

aFricaaFricaaFricaaFricaaFricaaFricaaFricaaFricaaFrica

0%0%0%

0%

in-depthId

electricity is prosperity by Elena Comelli

for italy, the worst signal came in 2009. it was the first time since the birth of the republic that electricity consumption had drop-ped for two consecutive years. sifting through the historical se-quence, starting from 1883, when the use of electricity in italy began, it turns out that not even the first World War or the great depres-sion of 1929 had halted electricity consumption for two consecutive years. only the second World War managed to cause a such a long setback. WWii and the 2008-2009 crisis. With a predictable relapse in 2012, clouding a number of months in the negative: – 5.2% in march, – 6.2% in april, and in may, -4.1%. from this data, we can deduce that electricity consumption is correla-ted with economic growth. if its consumption drops, it means that industrial output has decreased: in a manufacturing country like italy, it is a sure sign of recession and, in fact, prospects for the italian economy converge on a negative growth of at least 1.5% in 2012. it is a very close relationship, which in recent years

has gradually been changing into a global process of technological chan-ge, but it is still very solid. besides, we should not forget that work has always been linked to energy: the unit of measure for energy is the work done and there is no work wi-thout energy. after having obtained energy for millennia from the muscles of men and animals, from the force of falling water and wind capable of moving the mills, from the power of fi re and steam, we were fi nally able to harness it effi ciently with the mechanical production of electric energy, which, little more than a century ago, started the second industrial revolution. since then, new machines and new sources. from coal to oil and gas. in a few years, electricity bumped up the production of goods and services at an entirely inconceivable pace. the work of a man cannot exceed 50 watts of power for more than 12 hours a day; thus, calculating a daily supply of 0.6 kilowatt-hours, in order to replace all the electricity that is produced in italy today with human labor, every citizen of this country would have to have at

least 20 slaves. for many countries – those who possessed them – energy sources from fossil hydrocarbons were an innovative solution to the problem of the constraints resulting from the balance of payments. the major industrial powers were fi rst built with the use of coal, then with hydroelectricity taking the place of coal, thereby avoiding dependence on foreign energy to supply all the energy needed for development. but for the industrialized countri-es, the real electricity revolution came after World War ii. the tasks were enormous and the hydroe-lectric reserves were insuffi cient to provide all the energy needed for industrial production. the solution was found by using gas equipment and the decision to obtain sup-plies of oil on world markets, or to produce more at home: the united states is the model country in this regard. but italy, which in 1950 produced 22,000 of the 25,000 gigawatt-hours required per year with hydroelectricity, was forced to use other sources in 1980 to meet a

056

demand multiplied by seven, nearly 180,000 gWh, while the hydroelec-tric production had already almost reached its limit, with 45,000 gWh generated that year. thermoelectric production, which in 1950 came to 2,000 gWh per year, had jumped to 130,000 by 1970, generated mainly by oil. added to this were the over 6,000 gigawatts of nuclear power, of which italy was a pioneer.for the fi rst time, in those years, the production of electricity had beco-me plentiful and everything seemed easier. it had once been conditioned by nature: one produced electricity where there were waterfalls and then it was transported far away. now the power plants are being built wherever there are available sites, preferably close to the centers of consumption. a barrel of oil contains 1.7 megawatt-hours of electricity in a compact space: a huge energy potential, fairly easy to be transpor-ted and to be exploited right where it is needed, just by burning it. for the moment, it is still a source that has no comparison from the viewpoint of practical use. the italian system of

electrical generation, like that of the other industrialized countries, was largely achieved in those 30 years. the same that presented us with an economic boom unprecedented in human history. but also the fi rst major oil crisis in 1979-80. from then on, nothing would ever be as before. the era of easy oil is over and it can be said, with good approximation, that the intoxication of those 30 ye-ars should be considered fi nished.the dynamics of social and cultural expectations have deeply complicated the scenario, especially in countries that, until the Eighties, seemed stal-led in underdevelopment and which, instead, are now tumultuously laun-ched toward growth. this dynamic of expectations is a powerful mechani-sm for innovation: today, even the indio farmer in the andes and the farmer in guangdong or in anatolia want to live according to a standard that would once have been incon-ceivable and which, instead, they now seek incessantly, along with the citizens of nations that were indu-strialized earlier. Even for them, elec-tricity will be essential for achieving

new levels of well-being. but a new technological revolution will have to come to pass in order to respond articulately to these new needs. this is a matter of a worldwide process, which is already beginning to emerge from the statistics of industrialized countries: social and political development extends the ability to choose among the energy sources, in favor of the most profi -table for raising the quality of life. the progressive decarbonization of the economy, thanks to the new technologies of energy production from renewable sources such as solar and wind power, and thanks to new, more effi cient electricity grids and the development of service industries, the trend of electricity consumption is gradually decoupling from the trend of economic growth. a fi rst hint of this can be seen in the graph (in the preceding pages) regarding the uni-ted states. a similar phenomenon will soon be seen in Europe and, in the future, also in asia and around the world. now the challenge is to acce-lerate this revolution and smoothly usher mankind out of the oil era.

057

058

scenariosSc

the evolution of electricity markets and the newglobal outlook

There is no doubt that the power sector is facing what is perhaps its major challenge in its history of less than 150 years. According to the International Energy Agency or the European Commission in its Energy Roadmap 2050, the electricity industry will have to move from a generation mix that is mostly based on fossil fuels to a virtually decarbonized sector by 2050, while supporting the electrification of transportation and heating. And this will have to take place in the midst of an on-going process of regulatory reform meant to introduce more competition and consumer choice and less governmental interference in this industrial sector.

by Ignacio J. Pérez-Arriaga

Drastic regulatory and structural changes are not new in the power industry. The early power sector de-velopments at the end of the 19th century and beginning of the 20th century were mostly driven by private initiative and competition. However, the realization of the essential nature of electricity, the need for ever incre-asing volumes of investment and the necessity to protect both the compa-nies against abusive intervention and the consumers from excessive tariffs and poor quality, led in most countri-es to the replacement of the free com-petitive model by strong governmen-tal intervention in the form of public ownership or treatment of the elec-tricity companies as regulated mo-nopolies, either publicly or privately owned. During most of the past cen-tury and until the 1990s, worldwide, electricity industry regulation was based on a quasi-standard regulatory approach involving heavy State plan-ning and intervention, with the State

casted demand growth, made a least-cost investment plan and submitted it to the regulator, requesting funds to implement it. Utilities could nor-mally borrow capital to implement these plans at low interest rates, since there was a regulatory guaran-tee that future revenues would be adequate to cover investment costs. Today, this traditional regulato-ry paradigm has changed in many countries. Chile (1981) started the process, followed by England and Wales (1990), Norway (1991), Argenti-na (1992) and many others on all con-tinents. The main component of this change is the creation of electricity markets that provide the platform for trading and establishing prices. The first step in creating such markets is the elimination of the limitations to competition that characterise the traditional scenario. Abolishing these limitations suffices to create markets for many manufactured or agriculture products such as textiles

being the sole regulator. Under this traditional system, prices are regula-ted to cover the costs incurred by elec-tric utilities, while investment either requires regulatory authorization or is State-planned. This approach pre-cludes any electricity market per se and transactions are conducted ac-cording to the rules laid down by the regulator. Consequently, the vertical and horizontal structure prevailing in the industry is of scant importance, which often has led to the existence of a single utility, a vertically integra-ted monopoly with a territorial fran-chise. In Europe, for instance, prior to the 1990s’ liberalization process, most major countries (except for Germany and Spain) had just one sin-gle, publicly-owned electric utility. This regulatory framework worked well for several reasons. Investment in electricity infrastructure was a low-risk activity when the industry held a franchise monopoly and was vertical-ly integrated. Utility companies fore-

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060

or wheat, where suppliers abound and they can compete without the need for any other specialized in-frastructure. In the electricity in-dustry, however, regulatory reform must address an additional element, namely vertical and horizontal re-structuring and the absolute need to use networks to deliver the product. The gradual exposure of traditional, vertically integrated utilities to com-petition was initiated in response to concerns about energy security and independence from foreign energy sources as a result of the 1970s’ oil cri-sis. This and other concerns led the United States and other developed countries to enact rules that favored the development of renewable ener-gy and cogeneration. Although the volume of generation was very small compared to generation from verti-cally integrated utilities, these new participants introduced a completely new scenario in the electricity indu-stry. What had been a closed shop

for many years, opened its doors to independent power production, al-beit with very specific characteristics.Other factors favored the advent of in-dependent power production, which was not restricted to renewables or cogeneration only. Electricity pri-ces under traditional regulation had consistently declined for many years, aided by technological developments and the fact that economies of scale had not yet been fully exploited. That also changed in the late 1970s and early ‘80s, leading to more stringent regulatory reviews of utility costs, raising vertically integrated utilities’ risk, and encouraging them to seek alternatives to cover the investment needed in generation. When new in-vestment was needed, these utilities began to buy the production required from third parties under a variety of instruments, typically known as “po-wer purchase agreements,” subject to the approval of the regulatory au-thorities. The costs involved were

061

the evolution of electricity markets and the new global outlook | oxygen

then passed on to consumers with no risk to the incumbent utility. Such independent power production be-came standard practice in the USA, until the 1992 Electricity Act allowed “independent power producers” to trade freely in the power system and sell wholesale power anywhere to any vertically integrated utility or distribution company. This entai-led open access to the transmission network. Selling to end consumers, or “retail competition,” was not al-lowed, however. This area of the market was liberalized years later, at the discretion of individual state regulators. Other countries such as the UK, Norway, Argentina, New Ze-aland or Australia got off to a later start but carried liberalization throu-gh to completion much more swiftly. Similar transformations in develo-ping countries were driven by a num-ber of factors. After years of large investment projects and subsidised rates, which were often insufficient to

recover costs, state-owned electricity companies in many countries lacked the resources to continue investing.

As a result, they resorted to indepen-dent producers, private companies keen on entering the generation busi-ness. Plant construction and operation was often tendered. Several electric power systems are presently organi-zed around these arrangements today.

twenty years of liberalization and restructuring have taught us that creating well-functioning, competitive wholesale and retail markets for electricity is very challenging, both technically and politically, and cannot be applied everywhere

The massive entry of independent power producers in the electricity industry in the 1990s and the early twenty-first century was favored by an environment of declining inte-rest rates, controlled inflation, libe-ralization of capital movements and development of financial markets. The present prevalence of private investors in the electricity industry, hitherto mostly controlled by state-owned companies, has brought fun-damental change to the perception of risk and investment priorities.Finally, the new regulatory paradigm, announced by the pioneer reform in Chile in 1981, restarted its imple-mentation in the early 1990s and swept the world. The jury is still out regarding how beneficial the libera-lization has been for consumers and electricity providers. The objective of the reform was to create new go-vernance arrangements that could provide long-term benefits to consu-mers. Electric utilities were restruc-

oxygen | 16 — 06.2012

062

tive wholesale and retail markets for electricity is very challenging, both technically and politically, and can-not be applied everywhere. Where properly implemented, wholesale markets have led to improved perfor-mance and have attracted significant investments. Despite some failures and implementation difficulties, the general trend in most liberalized power sectors is to proceed with the process of reforms. Experience has shown that regulatory reform only delivers efficiency and benefits to consumers if the regulation is well designed. And that achieving an or-thodox regulation requires a firm political commitment to the reform. The numerous failures have had multiple causes. Most of the time, failures happened because of ina-dequate structure of the power sec-tor to accommodate competition at wholesale or retail levels, because of excessive horizontal concentration in the competitive activities, insuf-

tured; the potentially competitive activities of generation and retailing were unbundled from the network ac-tivities of transmission and distribu-tion, which remained under regulato-ry control while offering open access. Independent system operators were given the responsibility of running the power system securely and gua-ranteeing the provision of ancillary services. Competitive wholesale and retail markets were created to impro-ve efficiency and responsiveness to consumer preferences. Consumers had the freedom to choose suppliers. Incentive regulation was introduced in the network activities to improve their efficiency. Independent regula-tory agencies were created to moni-tor market behavior and implement the regulation of the diverse activi-ties. And the role and political in-fluence of governments was reduced. Twenty years of liberalization and restructuring have taught us that creating well-functioning, competi-

before the liberalized model had the time to consolidate, we are facing again a new change of paradigm that will have to lead to a future power system very different from the present one

063

ficient unbundling of competitive and regulated activities or lack of vo-lume to hold competition, or lack of a suitable institutional framework. In other cases, the problem was an incorrect allocation of risk in the re-gulatory design, exposing some par-ties to unacceptable risk levels, as happened in California. Poor design of default tariffs may kill the retail market. And flawed market pricing rules, or the absence of adequate compensatory mechanisms, may lead to insufficient remuneration and lack of generation investment. Frequently, the absence of clear bu-siness models and rules for cost al-location, as well as the absence of expeditious siting procedures, have hampered transmission investments from keeping up with demand growth and generation expansion. The success of regulatory reforms requires the adoption of an orthodox regulatory approach. However, the reforms will not succeed whenever

the underlying structural and insti-tutional conditions are not adequate or if there is no firm political com-mitment to the reform. Regulatory models are not easily transferred to countries facing different sets of con-ditions. Finally, nationalistic energy policies may ruin the best efforts in achieving effective supra-national electricity markets and even com-petitive domestic markets, as well. Before the liberalized model had the time to consolidate (the Europe-an Union has set the target of 2014 for the completion of its Internal Electricity Market, for instance), we are facing again a new change of paradigm that will have to lead to a future power system very different from the present one. The serious and justified global concern about climate change is profoundly affec-ting energy policy and power sector investments. Intense political over-sight and interference is already ta-king place and much more is anti-

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fail to internalize these concerns. Most decision-makers consider that the resulting energy prices would not be politically acceptable, and a long-term regulatory commitment to these policies is lacking, partly because of the absence of an international con-sensus on how to proceed. Therefore, at the least, it is necessary to supply the energy sector in each country or region, and the electricity markets in particular, with the long-term vision that indicative planning and long-term strategic targets can provide. The name “indicative” planning is probably misleading, since it should be more than just a prospective analysis (find out what could hap-pen) and rather have a normative character (identify what has to be done to make sure that a future with some desirable features happens). Indicative planning makes explicit the future energy alternatives and sets objectives for what has to be re-gulated. Many aspects of electricity markets could be regulated, althou-gh perhaps they should not: targets for penetration of renewable ener-gies or other clean technologies, objectives for energy efficiency and savings, support schemes to improve the security of supply, goals for sec-torial carbon emissions, and priori-ties and resources for research and development. Governments should be limited to providing any neces-sary regulation of energy markets to make the agreed long-term policies possible. Thus, markets and regu-lation should not be seen as oppo-site, but as complementary forces. Electricity networks pose a diffe-rent set of questions. Is the present regulation of transmission adequa-te to support the anticipated large deployment of intermittent rene-wable generation? The challenges posed by the sheer size of the inter-connected power systems and the anticipated large presence of inter-mittent generation will require ca-reful consideration, and a possible overhaul, of the current transmis-sion planning criteria, definition of the responsible institutions for inter-connection-wide planning, cost allo-cation methods, business models for transmission developers and siting procedures. System operation also must undergo a major renovation. Contrary to transmission, distribu-tion networks originally are not de-signed to accommodate generation.

cipated. Security and sustainability will have at least the same priority as efficiency in the regulatory design. Without trying to prejudge the futu-re, it seems clear that some features will characterize the power sector du-ring the next decades. First, we can anticipate a strong presence of rene-wable generation – intermittent and distributed to a large extent – in many power systems. Second, the availabi-lity of communication and control technologies, plus the current trends in regulation and consumer beha-vior, announce strong, future, active demand participation. In the absen-ce of a technically and economically viable and widespread storage op-tion, and with massive penetration of intermittent generation, the futu-re role of demand response cannot be over-emphasized. Third, politi-cal developments, economic ratio-nality and network reinforcements inexorably lead to an integration of existing power systems and markets into larger entities. Finally, in develo-ping countries, it is expected that du-ring this period universal access will be finally achieved, and electricity consumption will grow to reach mi-nimum standards of quality of life. And now the questions are: Are the current electricity markets, the struc-ture of the power sectors and the regulatory frameworks ready to sa-tisfactorily meet the challenges for an efficient, secure and clean sup-ply? In the context that can be anti-cipated of strong sustainability- and security-oriented policy measures, how to improve or redesign power system regulation to facilitate that these policies reach their objectives efficiently? How to make these po-licy measures compatible with the functioning of electricity markets?Let us consider markets first and the networks later. The advantages of markets are well known. They are successful if the structure of the industry is right and there are no interferences, although electricity markets are complex and may go wrong in many ways. But they have limitations. Markets may ignore su-stainability concerns, such as the long-term availability of the present energy sources, energy dependence, diversification of fuels and suppliers or the need to support promising technologies that are suitable for long-term sustainability objectives. Why? Because current energy prices

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However, their design, operation, control and regulation will have to be adapted to allow potential massi-ve deployment of distributed gene-ration (DG). Under passive network management, DG penetration ge-nerally results in additional costs of network investment and losses, an effect that increases with penetra-tion levels. Therefore, distribution utilities in general will be biased against DG and may create barriers to its deployment. Most of the cur-rent regulatory mechanisms are fo-cused on cost reduction and lack “natural” incentives for innovation. Solving the lack of access or insuffi-cient access to electricity of a signifi-cant fraction of the world population is a key component of the future su-stainable power system model. To this purpose, rural electrification has

to be explicitly considered a key ele-ment of the energy policy in develo-ping countries, with specific support instruments, financing and business models that are able to attract lar-ge volumes of private investment, since this is a formidable task in terms of volume and organization. New and emerging clean technolo-gies will be crucial in attaining a su-stainable power system model but their development and commercial deployment will need regulatory support. Since, for the most part, the market for clean electricity is policy driven, in this policy-driven market the regulation itself is a major risk factor. To unlock finance for the cle-an technologies, investment-grade regulation is necessary. This means a compelling vision, supported by a precise, clear and stable policy.

rural electrification has to be explicitly

considered a key element of the energy policy in developing countries, with specific support

instruments, financing and business models

that are able to attract large volumes of private

investment

the evolution of electricity markets and the new global outlook | oxygen

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From the post-war reconstruction on, power companies were the stronghold of the country’s capitalist interests. An archaic style of capitali-sm, immune to the process of opening that was occurring in Italian society on both an economic level, in general, and the social level, in particu-lar. Those were the years of the expansion of the production base, of the industrialization that was leaving the old Milan-Turin-Genoa triangle and investing in new areas, such as the North-East, the central regions, even venturing as far as the South. A process requiring, among other things, the availability of an increasing amount of energy with the conditions of an ensured supply and at a price that was not a highway robbery imposed by a cartel. The largest private power companies were barricaded in a small economy that no one had managed to touch in the previous decade, during which there had been attempts to challenge it: in fact, having extraordinary financial resources and the resulting instruments of persuasion at their disposal, they had always kept the “danger” at bay. The matter was re-opened – or better yet, it was addressed – during the third legislative term, with the government headed by Amintore Fanfani, one of the “thoroughbreds” of the Christian Demo-crat Party, when he viewed the issue of opening toward the Italian Socialist Party as an essential and necessary step toward broadening the base of Italian democracy, consolidating it with the decisive contribution of a leftist progressive for-ce for reform. In a certain sense, for the meaning

which it acquired in general terms, the nationa-lization of electricity accompanied and marked the biggest political change ever enacted after the Constitution, and the end of the governments of the CLN (National Liberation Committee) which had arisen as a result of the Resistance.The reason behind this significantly political cha-racter of the nationalizing of electricity can be ex-plained simply by recalling that the determining “condition” imposed by the PSI (Italian Socialist Party) to ensure parliamentary support outside the Fanfani government, formed in February 1962, was exactly that nationalization. It was an introductory element for starting a process of structural reforms of the Italian system, which was to take shape throu-gh “programming,” that is to say, government in-tervention to pilot the entire economic system that already had a mixed character, with the presence of state-owned enterprises alongside, in competi-tion with, and in support of private enterprises. It should be noted that the state holdings had taken on the role of the driving force of the economy, with a distinction of the private sector marked by their exit from Confindustria, the confederation of Italian industry. In short, there were two paral-lel systems, where more than competitiveness, what counted was the certain and reassuring fact of the presence of public intervention, if necessary. The bill of law for the establishment of the National Board for Electricity, which would lead to the crea-tion of Enel, was submitted on June 26, 1962 by the government headed by Fanfani, together with the

the nationalizationof electricity

by Vanni Nisticò

contextsCo

The nationalization of electricity, in 1962, is the most important event of change in the economic history of the Italian Republic, destined, as it was, to break the strongest economic monopoly and, also, the most formidable power influencing national policy.

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Minister of Industry, a Christian Democrat, Emilio Colombo; the Budget Minister, Ugo la Malfa, a Re-publican; and the Treasury Minister, Tremelloni, a Social Democrat: all members of the previous cen-trist government, with the conspicuous absence of the Italian Liberal Party, hostile to nationalization.The presentation of the bill in question was not peaceful. Opposing forces were operating both within the signatory political parties, especial-ly among the Christian Democrats, and in the economic-financial sector. Fierce attacks were carried out in the press controlled by the econo-mic power, starting with “Il Sole 24 Ore” and “Il Globo,” and by the political right, the side which the electricity trust supported, led especially by Giorgio Valerio of the electricity company, Edison.The aim of nationalization was subjected to a real attack. The operation had begun earlier, under the auspices of a committee for the defense of stock and bond savings that, behind the smokescreen of wanting to defend the “small savers,” was actually the operational arm of the cartel of the large power companies. In May of 1962, and therefore before the presentation of the government bill, in a pam-phlet entitled Nationalization – Myth and Reality, the committee had collected a series of actions by economists and prominent figures, all of whom were opposed to nationalization. The presenta-tion of the collection declared, “It is known by now that nationalization interventions have obtained bad results, which have been identified in the bu-reaucratization of the service, the loss of financial autonomy and the creation of centers of power that are difficult for Parliament to control. The best re-sponse to the failure of these experiments of the public control of key sectors is that, for many years now, only a few minor dictators of underdeveloped countries have resorted to such, as a quick means to consolidate their power against their political oppo-nents.” An audacious and disparaging judgment, if one takes into account the connotations and po-litical history of the forces involved in the change that had always militated against dictatorships. There are no surprises when looking over the list of the actions compiled by the committee, whereas the importance of the names that do appear is stri-king. The publication opened with an essay by Luigi

Einaudi, published in the newspaper “Il Resto del Carlino” on April 4, 1962. “The structural reforms,” stated the former President of the Republic, “are mostly requested by those who want to go toward the left. […] managing public enterprises, just like pri-vate ones, with economic criteria that is agile, alien to the bureaucratic delays and tiresome controls by accountants and the court of auditors is folly.”It must be said here that subsequent events, not so much and not only those related to the mana-gement of Enel, but the universe of public compa-nies in general, will eventually prove that the old liberal professor was right on more than one count.Another economist, then quite renowned, Caesar Turrone Bresciani, in the newspaper “Il Corriere della Sera” on April 8, 1962, saw government in-tervention to be an “expropriation of the sharehol-ders” contrary to the principles of the Constitution. He denied clear evidence, the exploitation of a mo-nopolistic situation by the electricity companies, as he absurdly argued that for some years, thanks to these companies, the consumption of electricity in the central and southern regions had increased more than in northern ones, forgetting that far more candles were lit than light bulbs in those regions.Great journalists of the time could not pass up the chance to beat their drums, such as Mario Missi-roli, writing in the magazine “Epoca,” in April of 1962, who gave exaggerated lessons in industrial economy and finance. Starting from the premise that the demand for energy doubles every 10 ye-ars, Missiroli said that “electricity power plants are worth 3.5 trillion,” so that one had to wonder if the State were “in any condition to take on this finan-cial burden, in addition to the one arising from the compensation for the expropriated plants.” Nor did the newspapers “La Stampa” and “Il Giornale d’Italia” want to be left out. The newspa-per of Fiat, which remained at the window deta-chedly watching an event that did not concern it directly, added its voice to the chorus, stressing that “Western Europe has overcome the tendency of nationalization.” The Roman newspaper, ha-ving lost prestige with the end of the monarchy and siding with the right, incontrovertibly de-clared that “reality says no” to nationalization. Concerns were also expressed among the Christian

the real father of the nationalization of electricity was riccardo lombardi, but giorgio napolitano also strongly supported it, even though he did not share the “chemical bubble” and the amount paid for the expropriation of the 1,270 companies in the electricity sector

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the nationalization of electricity | oxygen

Democrats and not at all timidly, to the point that their official magazine, “La Discussione,” in its is-sue number 412 of November 12, 1961, highlighted “the difficulty, in some cases, the harmfulness of the use of public enterprises for certain eco-nomic purposes,” as evidenced by French and English experiences. The fear, vivid within the right-wing Christian Democrats, showed a con-tradiction in terms of overlooking the “seizure of power” that the party exercised in no uncertain terms on state-owned public enterprises, the un-disputed stronghold of the Christian Democrats. This was the “climate” in which the process of the nationalization of electricity occurred. The com-panies came to the appointment well-armed; the previous year, 1961, moves had been made against the measure of the unification of electricity tarif-fs (adopted due to the initiative of the Socialist members of Parliament, Lombardi and Anderlini), which also introduced the “mandatory provision” of energy, and thus, for the first time eroded the de-spotic power of the companies on whom previously the decision of “connection” had solely depended.Alongside the campaign orchestrated with an unusual abundance of means by the electricity trust, a parallel action carried out by supporters of what was called the “collusive oligopoly” was

developing, aimed at eliminating the very idea of nationalization, replacing it with a plan addressed to maintaining the electric power companies as private firms, but opening up their shareholding to public participation. Supporting this proposal was the cartel of the underground agreement that the electricity companies IRI, SME (Southern Electric Company) and the SIP (Hydroelectric Company of Piedmont) had clenched with the private sec-tor on the basis of “compensatory guarantees.”A leading figure and undisputed protagonist of nationalized electricity was the Socialist deputy, Riccardo Lombardi. In his speech to the Cham-ber of Deputies during the debate to approve the law on August 1, 1962, Lombardi stressed that the project “has not and will not have any puniti-ve nature,” with its objective of a “rational use of a collective patrimony for collective goals.” The goal, he said, was “to have a potentiality able to guarantee the availability of energy, not with regard to the economic forecasts, but to the predictions of an application assessed as part of a conscious programming, ‘eliminating’ the negative influen-ce of any of contractual and private limitations.” In the stance taken by the Socialists, a more ge-neral concept was shown and stated, that of “programming” intended as a policy for addres-

1962Enel was established

by the fanfani iv government, with a house of representatives

resolution, proposed by the honorable

aldo moro, passed on november 27, 1962, which later became

law on december 6th of that same year.

this law provided for the nationalization of companies and

enterprises operating in the sector of the

production, marketing, distribution, and

transport of electricity, as well as all those

operating in functionally and technically related

sectors.

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sing the Italian economy in the perspective of its strengthening and its growth, which at the time was speeding along at record-breaking rates. That proposition was light years away from the authoritarian Soviet system of interventionism which it was compared to, however, by the right; the conservatives, who were then working within the government, ended up winning the game by distorting it until it was effectively annulled. The industrial and energy evolution was knocking at the door. In 1961, in the national energy sector, hydroelectric power accounted for 82% of the re-quirements; only 18% came from thermal energy produced, especially by industrial users, at two-thirds of the cost compared to hydropower. The ratio was fated to rapidly turn upside-down, in terms of both quantity and cost. The exploitation of hydropower had reached a point close to satura-tion, while the power plants were largely obsolete and required enormous capital for renewal. As things were quickly heading toward thermal ener-gy, the prospect of nuclear power arose, the costs of which were assessed to be rapidly decreasing. Economic competitiveness between thermal and nuclear power was expected over the next decade. As seen previously, the power companies were opposed to nationalization, entrenched behind the defense of “small savers.” These small savers,

Lombardi said in his parliamentary speech, were being used by “the big investors and speculators, just like the gangsters in American movies who use women and children to protect themselves.” During the parliamentary debate, policy positions emerged with clarity. The governing parties (DC, PRI, PSDI) supported the bill they had presented. The Socialist Party had made an effort to do so, ha-ving put it at the center of their political struggle. The Liberal Party, subject to the defense of compa-nies, was opposed. In the Communist Party, after the initial manifestation of skepticism which had led the party of Togliatti to share only “the intention of the measure,” a substantial change in direction occurred: in their speeches, Aldo Natoli and Gior-gio Napolitano, while “speaking with moderation,” – as Lombardi commented – conferred a positive judgment, showing an appreciation of the law. The bill was approved by a large majority of the Chamber of Deputies in its session on September 21st. With the subsequent vote of the Senate, and the promulgation in the Official Gazette of De-cember 12th of that year, it became the law of the Republic (# 1643/1962). Its adoption led to a ma-jor political breakthrough, paving the road of ac-cess for the Socialist government of the Republic. A step backward that led to the consequences that would ensue for the nation’s finances and eco-

071

nomy and, simultaneously, the clash between the protagonists of the preparatory phase. There were two issues, one relating to the disposition that had to be given to the electricity sector and then the outcome that awaited companies about to be dispossessed of their production plants. Firstly, it had to be decided whether or not to operate with a sort of “IRI-zation” or else through the establi-shment of a new independent body. The position of the “IRI” (Institute for Industrial Reconstruc-tion), by nature conservative, sponsored by large sectors of Democrats and Republicans, was op-posed to the establishment of a different and in-dependent body, as suggested by the PSI. But the Socialists got their way; and Enel was founded. The second point concerned whether or not it was necessary to preserve the structure of the old companies and who the recipients of the sub-stantial financial resources resulting from the nationalization should be. On the latter issue, Riccardo Lombardi harshly confronted the then Governor of the Bank of Italy, Guido Carli, who had played and, in subsequent years, maintained a decisive role in the Italian situation, exceeding on both an economical and political level. Lom-bardi was for the dismantling of the companies and the financial settlement of their shareholders.Carli opted for saving the electricity companies, arguing that only in that way would the massive

flow of capital resulting from the nationalization remain in the economic-financial system, pro-ducing new investments. Carli’s thesis prevailed and the 1,500 billion lire as credit toward the Sta-te went to fatten the balance sheets of the com-panies, all survivors. It turned out to be a Pyrrhic victory: that enormous wealth was then squan-dered in failed operations, killing the greatest opportunity Italian capitalism had ever received.What followed has been well illustrated in The Master Race, by Eugenio Scalfari and Giuseppe Turani, published in 1974 by Feltrinelli. “The na-tionalization,” Cappon notes, “had resulted in the emission of a huge amount of liquid capital into the hands of what was considered an entrepreneu-rial class. It was a historic occasion and I think that those who then fought to keep the former electric companies operating and have them be the reci-pients of compensations, rightly thought to have made a choice in favor of entrepreneurship. Unfor-tunately, we soon saw that among the former elec-tricity groups, there was not a single entrepreneur; or that funds which had been entrusted to them dissipated in the wind through erroneous initiati-ves and did not produce any benefits for the Italian economy that were even remotely comparable, for example, to what had happened at the beginning of the century with the creation of the electricity industry by the nationalization of the railways.”

napolitano saw the nationalization of electricity as a major reform of the

productive apparatus of our country and understood the extent of renewal that

would be achieved, even in terms of employment: quality work and prospects

for new generations

the nationalization of electricity | oxygen

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The power plants we are building now will define the biosphere of our planet for the next 5000 years. The math is straightforward, and stark. Carbon dioxide stays in the atmosphere for a long, long time. It takes nearly 5000 years for lime-stone and rain to scrub the atmo-sphere of carbon down to plausibly manageable concentrations. It ta-kes half a million years for igneous rock to scrub the atmosphere down to more temperate concentrations.A coal plant, built today, has an expected lifetime of 50 years or more. Every year, a 1 GW coal plant throws 8 million tons of CO

2 into the atmosphere – more than the mass of the Great Pyramid of Giza.It gets worse. There are roughly the equivalent of a thousand 1 GW coal plants in service today. Collecti-vely, in a decade, they blast 80 bil-lion tons (10 ppm) of CO

2 into the atmosphere – approximately the

weight of every single living thing on Earth. Business as usual for coal plants would make more of a car-bon impact that a firestorm bur-ning every living thing on the plant.We cannot assume that natu-re will just take care of this mess.In the past 20 years, electricity ge-neration worldwide doubled. In the next 20 years, it will double again. If we build those plants the way we have been building them, and run them for the 50 years we expect them to last, we will nearly double the amount of carbon dioxide in the atmosphere from when, at 275 ppm, civilization emerged, to 500 ppm, and beyond.Some policy makers say that reaching 450 ppm would be stable for the Earth. Some scientists (350.org ) fear that 350 ppm – much less than the current 396 ppm – is necessary. But as our climate models are making clearer and clearer, blasting to 500 ppm and beyond is not safe territory.

defusing thecarbon bomb

in-depth

“In the past 20 years, electricity generation worldwide doubled. In the next 20 years, it will double again. If we build those plants the way we have been building them, and run them for the 50 years we expect them to last, we will nearly double the amount of carbon dioxide in the atmosphere from when civilization emerged. […] We cannot assume that nature will just take care of this mess. We need something more than a faith-based strategy. We need to ask ourselves if we have the courage to turn the wheel.”

by Danielle Fong

Id

We humans have covered 3% of the planet surface and engineered 90% of the biosphere, consuming a quarter of its output, disrupting three-quarters of the fertile land, growing and replicating until we, our livestock and our pets, collectively outweigh wild nature, land and air animals, by 50 to 1

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We need more than a faith-based strategy.  We need to ask oursel-ves, what does this mean for us?For the past many hundreds of millions of years, there have been three major Earth climates.There’s hot Earth – greenhouse Earth. Ice thaws and organic matter rots, releasing methane, a potent green-house gas, and CO

2. Oceans stratify, building hot, nutrient-poor layers of water atop the oceans, preventing oxygen from reaching the layers be-low. Ocean life dies off rapidly, and the focus of life escapes to land. Tem-perate regions become vast, arid lan-dscapes, and fires and megastorms spread throughout the landmass. There’s cold Earth – icehouse Earth. Glaciers blanket and mold the lan-dscape, reflect the sun and cool the land. Life, crowded out of the land, finds its greatest vitality on the sea shelf. Oceans recede – land bridges emerge. Megafauna dot the  con-tinents. In the colder periods, the imposing glaciers grow and domi-

nate; in the warmer periods, envi-ronmental niches for life open up, for upward new species, like mankind.We humans emerged in a warmer period of an icehouse Earth. We spil-led out and filled the alluvial plains of every corner of this planet, built towns, roads and cities, covering 3% of the planet surface, and engineered the biosphere, consuming a quarter of its output, disrupting three-quar-ters of the fertile land, and 90% of the biosphere, growing and replica-ting until we, our livestock and our pets, collectively outweigh wild na-ture, land and air animals, by 50 to 1.Which brings us to now.This third era, the anthropocene – the manmade epoch, is without  pre-cedent. We would have had another ice age, had humans not intervened. The atmospheric record and the cli-mate track the technological and social development of civilization for more than a thousand years. We consume more energy than the tides and waves could ever supply – co-

light sail EnErgythe air is the cleanest and most economic means of energy storage in the world, and finding a technology that exploits it could be revolutionary. about 30 people – engineers and scientists, including danielle fong – are doing exactly that at light sail Energy, studying compressed air (lightsailenergy.com).

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defusing the carbon bomb | oxygen

opt more water than our aquifers can sustain, consume more of the food chain directly than any other species. We are a force of nature, ri-valed, perhaps, only by the powers of the sun, wind, earth, ocean and time.Scientists fear that our climate is mo-ving away from its zone of temperate stability, the nice, comfortable clima-te to which we have been adapted. Fish swim in the oceans. Tropical diseases are contained. Tropical agriculture is possible – megadroughts, ultra-floods and superfires are avoided.Business as usual is now heading to-ward greenhouse Earth. Unless we do something, and do something quickly, unless we face these pro-blems, invent solutions, and scale them up faster, in an absolute sen-se, than any industry has ever sca-led up before, then we will live in that greenhouse Earth. What will it really feel like? Maybe we will adapt. Life will survive; much of the planet’s history is of a greenhouse Earth. But one thing is for certain.

We will not find comfort easily. Gre-enhouse Earth is for crocodiles. Human beings must realize that we are now in the driver’s seat. We need to know where we are going, we need to talk about where we want to go, and we need to ask ourselves if we have the courage to turn the wheel.

there are roughly the equivalent of a thousand 1 gW coal plants in service today. collectively, in a decade, they blast 80 billiontons (10 ppm) of co2into the atmosphere– approximately the weight of every single living thing on earth

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In

interview with paul saffo

The qualification of “futurist” is no long-er in fashion the way it once was. The pace at which we have become accustomed to scientific and technological develop-ments in recent decades already makes it difficult enough to imagine what will happen in two or three years, let alone venture to make predictions about what the world will look like in half a century. Among the few who have the courage and credibility to do so is Paul Saffo, an Amer-ican essayist and teacher who proudly boasts the title of futurist. Professor at Stanford University, a member of sev-eral research foundations, including the Long Now Foundation and the Bay Area Council Economic Institute, he writes regularly for “The Harvard Business Review,” “Fortune,” “Wired,” “The Los Angeles Times,” “Newsweek,” “The New York Times” and the “Washington Post.” From this observatory, he describes the

changes taking place in various areas of technology and has often demonstrated the ability to anticipate their direction. The discovery and control of electricity was perhaps, at the time, the innova-tion that changed the world the most in the last century and a half. Virtually everything else came from that. Now the whole system of production and distribu-tion of electricity is being reinvented. Will this revolution be just as important? It is a great challenge, but it is inevitable that it will happen. If we look at the be-ginning of the history of electricity, going back to 100 years ago or more, we notice that, at first, it was used mainly for me-chanical tasks. Electricity was needed to move machines which, in turn, often made other machines. It was the phase of “stupid” electrons. The next phase be-gan in the Forties with the invention of

the transistor. That was when we started using electrons for intelligent purpos-es, i.e., the processing of information. From the amplification of the muscles to the amplification of the senses. With the subsequent evolution, computers started to amplify the human brain itself and this trend is still continuing. Now we are about to permanently transform the earlier “stupid” electrons into smart electrons. It would be interesting, and I don’t believe that anybody has done so, to draw a graph of how the ratio of stu-pid electrons (those used for mechanical purposes) and the smart ones (those for information processing) in circulation has changed over the past 50 years. With the so-called smart grids, we can see that all the electrons have become intelligent. Of course, the other great revolution will be in seeing how we manage to break the double bond between the production

tEchnology,mEdia, ElEctricity:

What futurE?by Nicola Nosengo

Oxygen asked Paul Saffo - a Stanford professor and one of the few credible futurists in circulation - to predict what technology will

be crucial to the future economic and industrial development. Beginning with electrical and electronic technology, which in turn is

the basis for the development of the media.

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The Internet revolution is a bit at the point where the television was in the Fifties. The Internet is many things, which are at different levels of matu-rity, so it is difficult to say how mature it is on the whole. All the technologies have a development that follows a curve in the shape of an S. They begin to grow slowly, then there is a precipi-tous moment of growth, then a final phase in which the curve continues to rise but at a more sluggish rate. The S-curve of the Internet began in the Fifties with the birth of Arpanet, only to zoom up in the Eighties. Now it is still growing, but it is made up of many smaller curves. E-mail, for ex-ample, which in the Eighties was the part that grew the most, is perhaps about to be replaced by the social net-works. With the constant evolution of the search engines, the domain name system could become less important: it is not really important that I possess “paulsaffo.com” if the search engines

and distribution of energy. But let’s take it one step at a time.

You have often written, even recently, that the electronic era is ending. What do you mean? Certainly not that computers are going to become extinct. The fact is that, more or less every thirty years, science discov-ers and explains some completely new phenomenon, which in turn is trans-formed into technology and changes everything. The latter has a certain growth curve, as long as its driving force is not exhausted. At the beginning of the last century, chemistry was at the center of attention and led to the Haber-Bosch process for nitrogen fixation, which al-lowed us to produce fertilizers and explo-sives, revolutionizing agriculture and, unfortunately, war. Then in the Thirties, it was physics’ turn, with the discoveries about the structure of the atom which, once again, led to the atomic bomb. In the Fifties, thanks to the encounter be-

tween physics and cybernetics, the era of electronics and computers began. Now the innovative drive of electronics is still there, but it is running out. Whereas we are only at the beginning of the biology era. Moreover, it is a fact that 50 years ago, to be a NASA engineer was the cool-est thing you could imagine and in the Eighties, those who scored the most at parties were the computer science ge-niuses. To get a date with a girl today, it’s much better to say that you are a ge-neticist. It is important to note that every revolution is built on the previous ones, without canceling them. Genomics has been made possible by the technology developed in Silicon Valley, which has allowed for sequencing the genome very quickly.

What stage of development is the In-ternet at today and how will its deve-lopment continue? Sometimes it is hard to tell whether a technology is still in its infancy and or is already mature.

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technology, media, electricity: what future? | oxygen

are able to find me anyway. In short: some things that seemed important a few years ago will become less impor-tant and will be replaced by others, but overall the most rapid phase of growth of the Internet is ending.

But will the Internet eventually devour all the other media? Will the conver-gence of the media, which analysts have talked about for many years, ac-tually happen? I have never believed in the idea of this convergence. If it were true, AT&T and the movie studios would own eve-rything. Instead, that’s not how it is; in fact, neither one is doing too well. At a technological level, there may be convergence in the sense that the same network infrastructure does many different things. But not in the way in which the media are used, on the final product. The new products and the consumer’s experiences tend to diverge and remain separate.

Are there innovations, perhaps less striking and less celebrated, which will be fundamental for the future? A true technological revolution that we aren’t paying enough attention to is that of 3D printing. It is transforming industri-al production, leading it beyond the era of mass production. There are already mili-tary aircraft whose parts are made entirely with 3D printers, because this way the military avoids having to keep spare parts in stock, greatly reducing costs. There are parts that are made in this way now even on large airliners. There are already com-panies that produce commissioned piec-es designed by the users – who just send a diagram made on their computer –in the number of exemplars desired. This means the end of the assembly line, which means that it is becoming cheaper to produce an object, even just a few in number, and not only if you sell millions of pieces. In twenty years’ time, this tech-nology will have completely transformed the way in which we produce objects.

Let us close with a technology that, in the eyes of the general public, has not kept the promises it has made for de-cades: robotics. Is its time yet to come? Robotics is already a reality. They are the drones, unmanned aircraft that to all ef-fects are autonomous robots, and which are now more important than fighter pilots. They will soon be authorized also for civil aviation, for surveillance or res-cue operations. Then there are the cars that drive themselves, such as those that Google experimented with in Califor-nia, where I live. They are already a real-ity, perhaps not ready to circulate on the roads, but they work perfectly in indus-trial sites where they can move following a few basic rules and without the risk of hurting anyone. Robotics is keeping its promises and will go much further; the problem is that people continue to have a mistaken image of the robot. They are not, and never will be, those humanoids to which we have been accustomed by science fiction.

a true technological revolution that we aren’t paying enough attention to is that of 3d printing. it is transforming industrial production, leading it beyond the era of mass production. in twenty years’ time, this technology will have completely transformed the way in which we produce objects

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Without lightby Gianni Riotta

A look into the history of the dark, to reveal that in every age, in every form of art and religion, as well as in philosophy, for mankind,

light was truth, clarity and well-being, and darkness was lies, uncertainty and poverty.

visions

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The paintings of Georges de la Tour (1593-1652) and Michelangelo Merisi, called “Caravaggio” (1571-1610) are often juxtaposed in art history books for the intelligent use of light by the two maes-tros. A candle that illuminates the faces of family members intent on watching a child, a beam of light from a torch that illustrates an august martyred saint, or Christ who blesses the humble supper table at Emmaus. For centuries, they have fascinated those who look at them for their depth, warmth, details and feelings. For the people living in the sixteenth and seventeenth centuries, the masterpieces by Caravaggio and de la Tour aroused a feeling that we modern people cannot manage to grasp, if not with the help of his-torical memory. Light at night was so very rare. Faint stars, a full moon, and in the far north, the northern lights: otherwise, darkness. Inside the homes of the wealthy few, yes, the rooms were illuminated, but

only on special occasions, otherwise a can-dle or a torch: just enough to give light to a table, a corner or a bed. It was pitch dark in the corridors, in the corners of large rooms; wherever that small flame could not shed any light, more darkness. At the end of the eighteenth century, the Castle of Fratta that the little boy Carlino remembers in The Confessions of an Italian by the great author Nievo, is, basically, a dark place.For the poor, sunset was the beginning of a darkness that would be interrupted only at dawn. Whenever they could see a painting, for the most part in churches, in which the household darkness had been cancelled – even if only by colors – they must have been deeply moved: so, it was possible that being condemned to night’s blindness was not permanent, and thus, light could obliterate the night. That is why, despite so many great art-ists, de la Tour and Caravaggio hypno-tize us: for their exorcism of darkness.

A quick look at the Bible suffices to confirm that darkness seems to be a condemnation for us human beings; “Men took the dark-ness rather than light,” says the Gospel according to John: III, 19, in the verse that Giacomo Leopardi uses as an epigraph to the most philosophical of his poems, The Broom: “Καὶ ἠγάπησαν οἱ ἄνθρωποι μᾶλλον τὸ σκότος ἢ τὸ φῶς.” Preferring darkness to light is the ultimate wrong, it means refus-ing to understand the truth: in his “Allego-ry of the Cave,” Plato imagines that the phi-losopher, seen in the light of the world and not reflected in subterranean shadows, tries to bring men back to the truth. Pro-metheus gave fire to humanity and for this, was condemned, darkness must continue to be a life sentence. In Hades, the Hell of the Pagans, the suffering is the dark itself. To the heartening praise of Odysseus, “You are yet the King among the shadows,” a pained Achilles replies, “I’d rather be the lowest of servants, but yet in the light.”

preferring darkness to light is the ultimate wrong, it means refusing to understand the truth: and, in his “allegory of the cave,” plato imagines that the philosopher, seen in the light of the world and not reflected in subterranean shadows, tries to bring men back to the truth

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If the world of darkness that came before us is by now considered to be far off and dispelled, take a look at the nighttime picture on the website http://ricochet.com/main-feed/A-Photo-of-Kim-Jong-Il-s-Legacy. It is an aerial photo of the two Koreas, on Christmas Day, 2011. Dense lights cover the developed nation of South Korea and spread beyond the bor-der with China. The area of North Korea, poor and oppressed by its dictatorship, is black, just as the entire planet must have appeared in the Middle Ages. The photo comes from the research by Brian Min, Professor at the University of Michigan, that links the dissemination of democrat-ic institutions with the spreading of pub-lic goods, first and foremost, electricity. Lenin said that Communism was “Soviet plus electrification,” but North Korea, the last Communist realm without a market after the turn taken by China under Deng, is the darkest country on the planet.

who decides to break it forever by forming the Light, the first element of Creation. Of all the great material and species that the Creation will offer, the Light is, thus, the first: and it will always be the rational icon, vision and life strategy, even in the secular reasoning of the critical Enlightenment.

Caravaggio and de la Tour bewitch us, just like the peasants who could just barely glimpse it in the paintings, be-cause in their artistic creation they re-peat the primordial gesture of God and bring light into our daily darkness.

The words that open the Book of Genesis in the Bible are the strongest lead in the lit-erature of all time: “In the beginning God created the heavens and the earth. The earth was a formless void and darkness covered the Abyss and the spirit of God hovered over the waters.” The notes of the edition of The Jerusalem Bible (EDB, 2009) explained, however, that “the story begins only in verse 2: verse 1 is just a title.” Which is to say that Genesis begins with “The earth was a formless void and darkness covered the abyss,” and that God would not create “ex nihilo,” out of nothing, but would at least have before him the Abyss, the Earth and the Darkness, because – states the Jerusalem Bible – “the light is a creation of God, darkness is not: it is nega-tion.” If this interpretation is correct – alas I am no Bible scholar, but I feel it to be mar-velous – then the Shadows, the Darkness, already covered the Abyss even before the Creation, overseen by the “Spirit of God”

EnEa rEportaccording to the 2010 Enea report on energy efficiency, italy has a power consumption below the Eu average: 2.4 toe/per capita against the 2.7 of the Eu. in addition, the action plan for Energy Efficiency (EEap) in 2010 led to a savings of 47,711 gWh/year, while the expected figure was 35,658 gWh/year. Encouraging data.

without light | oxygen

that is why, despite so many great artists, de la tour and caravaggio hypnotize us: for their exorcism of darkness

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But, unfortunately, it is not alone. Even in 2011, the World Energy Outlook esti-mated that 1,317,000,000 human beings did not, in whole or in part, have access to electricity. 80.5% of the lucky ones are facing 19.5% who still dream of being able to light a lamp, a stove, an electric icebox, albeit primitive, or a camp stove. In cities, the percentage rises to 93.7%, but think of the lives of those who, while encamped in a megalopolis in Africa, Asia or Latin America, cannot turn on a switch to see, keep warm, cook or work. In the countryside, the data gets worse: 32% of the people live in total darkness at night. In Africa (2009 data), 587 million people remain in the dark after sunset, two million in North Africa and 585 mil-lion in sub-Saharan Africa. A fact that must not be forgotten, when we Europe-ans complain about the waves of migra-tion as if they were a nuisance and not an epochal movement. In the African countryside, only one farmer out of four has access to electricity, but in the Sa-hara, the percentage falls to 14.2% (like in Europe generations ago) and 85% of the families are living, working and strug-gling in the dark. In China and Southeast Asia, 182 million people have no light; in the rest of Asia, 493 million; 31 mil-

lion in Latin America; and in the Middle East, 21 million people. In South Asia, 30% of the countryside is in darkness; and in booming Latin America, it is 40%. Here, in the fashion of attacking develop-ment and the GDP as if there were alter-natives to growth for fighting poverty, Pier Paolo Pasolini recalls his nostalgia for the Friuli countryside, dark as to light but full of human warmth, and the “language of the children at night” (“lengas dai frus di sera”). Many speak of “decrease,” as if that which the crisis is inflicting on us were not enough, and imagine (some naively in good faith, some in cunning maneuvers) a rustic village straight out of Disney, with apple pies on the window-sill, mothers in aprons washing the dish-es and whistling fathers wearing knotted handkerchiefs on their heads, reaping the corn or harvesting the grapes. It won’t be like that; Virgil imagined his Bucolics and Georgics but, romantic realist that he was, Tityrus playing his flute was ac-companied by the plague of Noricum, which in a single season made life im-possible for men, livestock and plants.The dark and impoverished world is not a happy world. Writing of my island, Sic-ily, in a diary between the 20th and 21st centuries, The things I’ve learned, I re-

fiat lux“Fiat Lux is the opening of our world and our history, and the pagan gift of prometheus is the one most cherished by humans. because lives without lights are lives without life.”

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membered the poor, in the cities and countryside, in the ‘50s. They were not strong and happy, they were miserable and emaciated. From their hovels, from the “catoi” (as this Greek word defined the basements of the city), they lived a life of need and submission from which escape was impossible. Everything had to be begged for: a used razor blade, a dis-carded jacket, used shoes. And the one resource available was a single light bulb hanging from the ceiling without a lamp-shade, like the one that Picasso places in his masterpiece Guernica, about the destruction of Spain. How could anyone be able to study, read, talk and work with just that one dim light source? Impos-sible. I remember the nights of the first post-war period in Baghdad after the U.S. invasion and the fall of Saddam Hussein. The country that is so rich in oil did not produce energy anymore; the ghetto of the capital, the largest Shiite neighbor-hood of Sadr City, was without any light. Visible from the basements, the “catoi” of Mesopotamia, were the braziers, large copper trays filled with coals acting as half cook-stove and half floor lamp. The U.S. Army Rangers who took me on pa-trol with them, teenagers scared by snip-ers, in the end took pity on that perpetual

nighttime and, like their grandfathers did in Italy in 1944, they gave out choco-late and chewing gum to the children.

The photographer and documentary filmmaker Peter DiCampo has created a project of unique images, Life Without Lights (lifewithoutlights.com): there are no scenes of joy because the past has come back and there finally is no longer any light. If the City Lights, Chaplin’s film that the Beat poet Ferlinghetti wanted as the symbol of his publishing house-bookstore in San Francisco, were to go dark, there would be pain, not serenity. In the village filmed by DiCampo, there is no electricity, darkness is fought with eve-ry humble means: a small generator, car headlights, some flashlights and drip-ping candles. “Life without lights” tells of the cold, the humiliation, the slowing of time that the endless night imposes upon families, the elderly and young people. The darkness of poverty, where even the Spirit of God seems to get lost in the ob-scurity. That is why Fiat Lux, “let there be Light,” is the opening of our world and our history and the pagan gift of Prometheus is the one most cherished by mankind. Because lives without light are lives without life.

of all the great material and species that the

creation will offer, the light is, thus, the first:

and it will always be the rational icon, vision and life strategy, even in the secular

reasoning of the critical Enlightenment

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interview with licia troisi

In

insights ofimagination

by Luca Morena

Oxygen has experimented with a small exercise of the imagination in the form of questions and answers with Licia Troisi. The aim: the drafting of a toy world, a little toy world that is not only a sketch of a possible remote-control world where intuitions and aspirations can be put to the test, but

also the vision of a futuristic world.

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Energy networks that are self-organ-ized and smart, talking objects, fly-ing objects, mnemonic tables, arcane knowledge able to transfer all hu-man knowledge into “clouds,” self-propelled vehicles. It seems like the description of a fantasy scenario, but in reality, these are quite common or soon-to-be widespread technologies (in order: smart grids, smartphones, aircrafts, tablets, cloud computing and smart cars). One of the most famous and quoted in-sights of the science fiction writer Wil-liam Gibson is “The future is already here – it’s just not very evenly distrib-uted.” So there are pieces of the future scattered around the planet, more or less announcing rosy scenarios for hu-manity. These are technologies in their infancy, experiments on a small scale of alternative social and economic models, and objects of innovative and revolutionary design.

Have you ever found yourself facing objects, people and situations that made you think that these were clear anticipations in the present of the near future? Vice versa, what are the essen-

tial ingredients of the present that you believe to be indispensable in a futuri-stic world? I have been reading a book lately, Rein-venting Discovery by Michael Nielsen, that is about how Internet can change the way science is done. Somehow, it seems to me, or maybe I am just hop-ing, that it is an anticipation of a future in which Internet is exploited to the ut-most. As for today, more than anything else, I hope for the evolution of ele-ments that are already present but not widely distributed or shared: the protec-tion of human rights, the spreading of democracy and green technologies.

What, if any, is the dominant element – in the sense of a material that is par-ticularly important and contested, a particularly widespread social practi-ce, a recurring aesthetic motif – in the future world that you imagine?Connectivity. I think we will be living in an increasingly interconnected world where everyone can, at least po-tentially, communicate with everyone else. Whether or not this will then in-crease or diminish our loneliness re-mains to be seen.

futuristic pastopening photo, an image from a satirical australian film from 1952, which envisaged the policy in 2000. on the left, the remote-controlled mobot mark ii robot in 1964. on the right, a little boy in 1952 is preparing for an unlikely journey to saturn and uranus; a bride’s hat at the boston fashion show of 1956, with antennas allowing the bride and her family to keep in contact during her honeymoon.

i would love cities where a new balance with nature can be found, in which technology allows for environmental sustainability. moreover, technology already offers us this possibility but we are not exploiting it to the fullest

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insights of imagination | oxygen

A large part of fantasy tradition feeds off the imaginary – only seemingly “anti-modern” – drawn from a generic me-dieval past, in which the natural and su-pernatural powers dominate mankind and not vice versa. Do you think that a sort of “narrative escape” from a future of unpredictable technological deve-lopment and economic and ecological uncertainties may also represent a way of exercising the imagination of more sustainable and only seemingly less “modern” models of society? How do you imagine cities will be in the future? I don’t know if that is the main reason for reading – and writing – fantasy. Cer-tainly, as far as I am concerned, the set-ting in a “technologically different” so-ciety has a certain weight; I have always missed the natural element, seeing as I was born and raised in the city. I would love cities where a new balance with na-ture can be found, in which technology allows for environmental sustainabil-ity. Moreover, technology already offers us this possibility but we are not exploit-ing it to the fullest.

Turning on the light. What will such an ordinary gesture mean in the future?

Hopefully, it will be accompanied by a greater sense of responsibility: it is some-thing we do very lightly, without thinking of what is behind the light that is illumi-nating our homes.

The ability to imagine alternative sce-narios and conceive of possibilities is at least as fundamental in science as it is in literature. Your background in astro-physics intrigues me, both for this con-tinuity (in the difference in the context) with its exercise in imagination and for the contrast with the classically anti-scientific narrative ingredients typical of the genre, such as the use of magic. How do you imagine energy in the futu-re of humanity? Will we find the ener-gy we need on other planets? And how do you experience the continuity and discontinuity between your narrative work and your scientific background?First of all, our behavior has to change. We have to rethink our relationship with the planet, becoming aware that its resources are not infinite and that we should make sparing and careful use of them. For the rest, my hope is that we aim more and more for renewable ener-gy. However, I think that it doesn’t make

much sense to look for other sources of energy around in space: it would only be perpetuating that very concept of devel-opment as robbery that is leading us to ruin. I do not perceive any discontinuity between my two kinds of work: each of us is defined by a multiplicity of inter-ests and passions that are impossible to reduce to units. Moreover, I believe that all knowledge is one, and it is artificial to make a clear distinction between hu-manistic and scientific culture. I am a curious person, I like to try to understand what the world is all about and at the same time, create new ones.

The theme of mutation has always cha-racterized fantasy literature. What do you think will be the most significant changes that we as a species will face? Judging from discussions such as those on post-humanism and the integration of technology in the human body in or-der to increase mental and physical per-formance, we are not so far from scena-rios that fantasy literature has explored far and wide...I find a hypothesis that I read in some sci-ence fiction book or article to be very at-tractive: the idea that evolution will slowly

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i hope that an ordinary gesture like turning on the light will be accompanied by a greater sense of responsibility: it is something we do very lightly, without thinking of what is behind the light that is illuminating our homes

make our bodies less and less important, and we will evolve toward a state of pure energy, pure spirit, if you will. Concretely, I think technology will re-define the con-cept of the body, and it will be easier and easier to build “spare parts” for organs that don’t work anymore. Of course, this will pose many questions about what man is, and the boundary between man and machine, but I would say that sci-ence fiction has already started practice on the subject.

An important aspect of epic fantasy is the strength of identity that the respective communities of fans are able to arouse and the ease with which these commu-nities tend to build up around characters and authors. You have a blog with a large following, and I think we can say that the ability to create identity and communi-ty typical of fantasy, combined with the ease of aggregation and the sharing of the social media, are a mixture of enormous commercial and creative potential. Have you ever thought of experimenting with collaborative and participatory forms of writing with your readers? No, I perceive writing as solitary work. I seek solitude when I write, I’d rather not even have anyone in the room with me

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guishable from reality. Moreover, this is the dream of every gamer, or at least, mine.

Finally, how does your creative process work? The impression is that, unlike other narrative genres, fantasy aspires to create entire worlds, often in lengthy and “monumental” narratives that are infini-tely more complex than the one which we have just been experiencing ourselves. This implies a certain degree of being systematic and continuously monitoring the consistency of the stories, characters and their fates. How do you organize your personal creative navigation of such long and complex narrative architectures?Yes, that’s exactly it and that’s the rea-son why fantasy generally develops as a saga. The created worlds simply “won’t fit” in the space of a single volume. I try to keep the thread foremost with the help of my editors, who come to my aid when my memory fails me, and also by mak-ing many outlines right from the outset when constructing the world and plan-ning the plot. In addition, when I write, I always have the previous chapters of the saga in the electronic version at hand, in order to easily search for that particular detail I can’t remember or some episode I am not sure of.

while I’m telling my stories. Since I am tyrannical with my characters and my worlds, I prefer to have complete control of the situation. But I really like it when the readers are inspired by my stories to nurture their own creativity: I like it that they make drawings, write fan fiction, and reproduce the weapons and items. In fact, I prefer to give the initial input and then let everyone, based on what I have recounted, expand the world and story to their liking.

Fantasy is also a rich source of imagi-nary scenarios for video-gaming, just like it has been already for role-playing games. Do you think storytelling in the future will take place largely in immer-sive technologies and simulations? Will gaming, fantasy and reality be perfectly integrated and indistinguishable?No, I don’t think so. The great thing about books is that they require active partici-pation by the reader, who has to imagine what has merely been written. So I think the word, written or spoken, will keep its power and charm unchanged. However, I think that from the perspective of the videogame, we are actually going toward a future where the game experience will be increasingly immersive and indistin-

homEs and transportation of thE “futurE” on the left, tourists

at disneyland in 1958 visit the “house of

the future” made of plastic, built by the

monsanto chemical company. on the

right, a 1956 drawing of a plastic bus

called the “golden dolphin,” driven by

a gas turbine and represented by the

artist in a version with 32 seats.

insights of imagination | oxygen

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Energy 3.0scenarios

Energy moves and it moves the society of Italy, its history and its economy. First, the driver of the economic boom and consumer society and then, the lymph of the post-industrial economy, now energy is experiencing a new challenge: to become innovative in order to solve the problems and needs of a future that, even though it seems a bit utopian, should not be long in coming.

by Simone Arcagni

In the Sixties, the economic boom was in full swing and Italy officially joined the ranks of industrialized countries. In the streets, in homes, bars and offices, electricity erupted with a force never be-fore seen in our country: electric lights, appliances, a television in almost every house, the car and the Vespa motorcycle are all symbols of a new status and new consumption. The cities fill up while the countryside empties out; for the genera-tions of those years – albeit with conside-rable difficulty and trauma (for example, the phenomenon of migration, both in-ternal and abroad) – the years of war and the terrible post-war years are a thing of the past. Appliances are perhaps the cle-arest symbol of wealth and a new socie-ty: Italian housewives are presented with refrigerators and gas stoves, young peo-ple with record players, and living rooms are arranged around the television set. Electricity allows for the push toward a freedom that can be found in con-sumption. It is not just a positive histo-ry; shadows and light play upon this epochal change in the country, but the obvious sign is the transformation

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new media (afterward) are the means by which advertising, information and entertainment “colonize” our society. Italy sells its brands throughout the world during the Eighties, the years when the so-called “Milano da bere” (“Milan to drink”) is the capital of the economy, trade and media. “Made in Italy” means fashion, advertising, de-sign and television. High quality and services for communication and infor-mation. In this decade, there is a shift from home appliances to the televi-sion, that moves from the living room into the kitchen, the master bedroom and the children’s bedrooms. There are more and more channels and tele-vision viewing is facilitated first, by the remote control and then, by recording devices such as VHS and DVD players. And alongside this phenomenon, another screen appears in homes and offices: the screen of the computer, that giant and slow electronic calcu-lator, good only for movies and sci-fi series, has become a common object. With the computer and Internet 2.0, digital technology comes into our lives

in the direction of industry and con-sumption. And electrical power is the engine and the basis of this mutation.

Over the course of these last fifty years, something else has been going on: in line with other industrialized nations, a new change has been modifying Italian society, transforming the country’s eco-nomy from an industrial one to a tertia-ry one of services and media. Electricity is crucial in the race for consumption, and publicity and information mark the change: television (first) and the

“smart” and collective intelligence are the utopia of a better future: a soul that needs ideas and energy to function. and so the other utopia to aspire will have to be new, clean, sustainable and effective energy

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of our bodies, after passing through the clouding, or the “cloud” of data out of the hardware which is always available to the user. A future that is vaguely sci-fi, in which the holographic image will make the screens of our devices obsolete. In fifty years, the use of energy has changed but energy itself will probably change, too. So a new panorama stan-ds before us, and above all, a panora-ma that is changing with increasingly dizzying speed. Looking at the past 50 years and trying to predict the next 10 on the basis of the processes underta-ken, visions arise of a world of dynamic, and even invasive, energy still with some unknowns and problems to solve: the problem of copyright, and thus, data management concerning the copyright, which is the basis of the possible expan-sion of Internet; that of a single standard for the technology that will enable the real synchronization of the connected world; that of the emerging countries and the questions they pose: to what extent will their eventual entry into the

and not only changes our habits, but also our culture, projecting us decisively into a post-industrial economy made up of services for communication and in-formation. The computer, Internet and cellular phones propel our society into the era of advanced communications and information. Electricity is no lon-ger just the lifeblood for the operation of heavy appliances; it has become the ethereal thread holding people’s com-munication together. Communication that is becoming easier and easier, faster and more personal. The shift from har-dware to software is not only a techno-logical issue, but also a way of thinking, acting and informing. From a “hard” so-ciety of heavy appliances to a “soft” one of the dematerialization of the device. Now, in 2012, we are about to enter into another phase of hyper-communica-tion, where we will go from a few billion connections to perhaps hundreds of bil-lions of them, according to data from the EU. The Internet is also changing: from Internet 2.0 to Internet 3.0, where every

apparatus, appliance and device turns into a computer able to communicate with the users and other devices. This is the “Internet of things” (the University of Tokyo is the most important research center, but there is also an observatory at the Polytechnic Institute of Milan). A revolution made up of chips and sen-sors, and thus, by the computer that, no matter how small and portable, moves into another phase of dematerialization. Mobile phones have become veritable pocket computers that can be connected and provide features that were pre-viously only the prerogative of other de-vices: a smartphone is a phone, a televi-sion, a computer, a camera, a camcorder and much more. A continuous evolution that the interrelation between science, technology and industry offers to citi-zens who have become the users. All the big players in the IT world are working in that direction, to open doors in the near future which will lead us to wearable computing, for example: computers that can be worn as if they were extensions

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global market affect us? And how much will they bring to the original model of communications that the West has de-fined? And finally, there is the problem of supply sources; the main challenge seems to be precisely this: new energy for a changed energy requirement, for a society that is once again changing and at an increasingly accelerated rate. A challenge to the sources and supply of energy, but also to its use. A challenge that seems to be envisaged as the cre-ation of a mix of energy and different, diversified sources. Photovoltaic, wind and other forms of renewable energy are all called upon to participate in the construction of an innovative energy sy-stem. But the citizen is also being called upon to use energy more wisely and to know how to choose, to think and par-ticipate. The turning point seems to be going in the direction of consumption, favoring models that challenge wastage and allow for the storage of energy and environments with zero dispersion. Therefore, constructing in an intelligent

manner (smart is the watchword of the-se years), making buildings, districts, neighborhoods and cities independent, creating a capillary diffusion of energy based on the model of the Internet. A comprehensive system that brings to-gether designers and large businesses, both public and private, local and global. The Smart City projects show the way to smart consumption and differentia-ted supplies, while paying particular attention to the problem of pollution. Our behavior and our habits have be-come fundamental, as are the plans that accompany them and help them, and therefore, Europe has increasingly come to be the motor capable of pro-pelling and the network that is able to give rise to the best results and to share them. For example, the “Smart Cities & Communities” project, which aims to create a European pact of sustainabi-lity, creating a network of “intelligent” cities. In Italy, Milan, Bari, Turin, Ge-noa and Sardinia have already made moves concerning contract bids for an

intelligent energy management system. A new model of energy use is apparent from these bids. A structural model that covers several aspects: construction, for example, for making processes of he-ating and cooling efficient and intelli-gent; photovoltaic energy; the use of ma-terials that prevent dispersion and thus, energy efficiency with studies regarding its storage. And in addition: the map-ping of the networks, to make them effi-cient and also make the data available to citizens to increase their participation in the entire energy cycle, thereby forming a responsible, democratic citizenry. “Smart” and collective intelligence me-ans the utopia of a better future: the “In-ternet of things” can become the true soul of the planet, a collective and parti-cipatory intelligence putting things and people into contact and in communica-tion; a soul that, once again, needs ideas and energy to function. And so the other utopia to aspire to concerns that of the energy to sustain it, which will have to be new, clean, sustainable and effective.

in fifty years, the use of energy has changed, but energy itself will probably change, too. so a new panorama stands before us, and above all, a panorama that is changing with increasingly dizzying speed

energy 3.0 | oxygen

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related to different contexts and functionality. Another “environmental sign” distributed throughout the country, from the North to the South and including the islands, is composed of the almost infinite number of electricity pylons, lined up as far as the eye can see. Also in this case, the culture of the design and project was broadly expressed at the International Competition, “Supports for the environment,” held in 1999 by Enel with the aim of designing supports for the aerial lines conveying high-voltage electricity to be installed in rural and urban areas that would have a more harmo-nious interaction with the Italian landscape.

A significant experience that, even though there was no concrete development of a “system,” had the merit of drawing international attention to an artifact commonly seen only for its “functio-nality” and which instead, in this way, became an opportunity to contribute to the quality of the built-up landscape. The results of the competi-tion, won by Norman Foster and which involved designers such as Aldo Aymonino, Achille Casti-glioni, Michele De Lucchi, Giorgetto Giugiaro,

italian energy forinternational design

contexts

Throughout history, design has accompanied the spreading use of electricity and electronic objects that populate our homes. From hydroelectric plants to household appliances, from pylons to laptop computers, up to the involvement today in energy savings.

by Gilda Bojardi

Looking over the fifty years of history of Ita-lian energy, alongside the events of the deve-lopment of a large company like Enel, it has meant necessarily relating the modality and distribution of electricity in our country to its economic and social development, as well as to the changes in the behavior of Italians at home, in the office and at the workplace. This means understanding the link that electrici-ty has and has had with everyday life and with the objects that surround us, the “necessary to-ols” we use in many aspects of our daily lives: from the commitments of work to the intervals of leisure time, from the private moments de-dicated to care of the body to those for relaxa-tion. It is clear that almost all the deeds done in a day, restricted by the use of objects and equipment, are related to the world of design and, consequently, to the energy that can “acti-vate” them, making them operational and use-able, complementary “tools” of our daily life.But before involving our private lives and the world of objects, the production of electricity directly affects the landscape around us, the cities and architecture. Just think of the pe-riod of the development of the hydroelectric plants in the first half of the twentieth centu-ry, designed as representative and figuratively-characterized architecture – a good example of reference consists of those in northern Italy designed by the Milanese architect Pie-ro Portaluppi – up to the modern, functio-nal and educational buildings such as the projects for Enel curated by Michele De Luc-chi with different solutions of composition,

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the link between the design plan and the class of energy efficiency is also growing with regard to any electronic device that has left the household world to enter the office and the workplace

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Corrado Terzi and Michel Wilmotte, still appe-ar very relevant today, more than a decade later. However, to better understand the rela-tionship between electricity and design, the scene of reference is the household landsca-pe - and more specifically, the world of inte-riors - to comprehend the changes of the use and related interactions between form and performance, and between aesthetics and sustainable design, which has developed in fifty years of history, and not only in Italy. Among all the everyday objects that have marked and characterized the evolution of household scenarios, appliances have played a primary role. Having entered into the homes of Italians in the Fifties as status symbols, the expression of a rising bourgeoisie, “desirable objects” for ordinary citizens with few resources after a dra-matic war, the appliance, and now by extension, the TV and hi-fi, have become essential players in our lives. Appliances have also had to deal with the aesthetics of consumption, where in addition to the features and technological in-novations, the degree of emotion and seduction that the object is able to produce contribute to

the success of a product in terms of its commu-nicability. The case of home appliances, howe-ver, adds important specifics that link the value of the shape and the design to high technology, comfort and safety and, increasingly, to the service offered, meaning above all “energy con-sumption.” This is how energy becomes part of the design plan, taking on a primary role in the showroom and in the retail spaces: alongside the formal solution and technical specifica-tions of the tasks carried out by the appliance and all the various household “robots,” they are labeled showing the energy efficiency clas-ses according to the regulation EN 153 of May 1990, Directive 94/2/EC. These are criteria that allow consumers – on the basis of similar data from different manufacturers – to immediately assess the energy consumption on a scale ran-ging from “A” (the most efficient) to “G” (the least efficient); this is the performance scale that is also used today in the housing market. Considering their obsolescence as one of the factors responsible for environmental pollu-tion, the “home machines” implemented a first moment of energy saving as a more durable

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italian energy for international design | oxygen

product over time, to then move toward more ethical behavior aimed at achieving greater en-vironmental responsibility. We can state that the very category of “electronic machines” for the home, in relation to their use and energy consumption, has developed the figure of the green consumer. This is a new kind of consu-mer, emerging by now in countries with advan-ced economies, who evaluates the product with an eye toward “fair and informed” buying, and in addition to the formal and emotional values of the object, extends the selection criteria to the technological aspects, but viewed in close relation to environmental issues and in relation to values of an immaterial sort, such as the fact that the object takes on the role of catalyst of information and innovative and advanced con-tent from a cultural point of view. A criterion, one that links the design plan to the class of energy efficiency, even if essential now for the appliance market, that is also growing with re-gard to any electronic device, along with televi-sion and hi-fi sets, that has left the household world to enter into the office and the workpla-ce in general. From the electric typewriter to

the computer on every desk, from the regular office to the “nomadic” one (which all of us can make happen with a laptop computer), a scenario has been set up that links design and energy in a synergistic and parallel way. Without a doubt, electronic objects have changed the Italian way of life and leisure; and the electricity in our country today that supplies the international design objects produced in Italy has found a happy and cre-ative playground, as well as a flexible and advanced manufacturing system that allows experimentation unthinkable elsewhere. But besides the classes of efficiency, technolo-gical innovation and performance offerings, the playful and emotional aspects of the elec-tronic object remain. In this regard, Umberto Eco wrote: “The postmodern forms are possi-ble not because they are opposed to modern design, nor because they are subject to an infe-rior idea of design, but because ‘good’ design, in which the form follows and communicates the function, is dead. […] Even though I am an apocalyptic cynic, as I write, on the radio there’s Mazinga playing Beethoven, which I really like.”

before involving our private lives and the world of objects,

the production of electricity directly affects the landscape

around us, the citiesand architecture

dEsign that illuminatEs

arco, taccia, and parentesi – famous

lamps by achille castiglioni – that

bring light from above, forming a

gentle arc, or from below, by reflecting

it onto a screen of sheet metal, attached

to a steel cable strung between the

ceiling and the floor. lightweight but firmly

anchored lamps that have been shedding

light since the sixties.

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the internet of things: when it’s the smartphone that controls the house

contexts

The term “home automation” is not yet known universally and technology still frightens some consumers. But we are closer than you would think to having a smart home, one that is safer, more comfortable and more energy-efficient. All controlled by our smartphones.

by Luca Salvioliillustrations by Seltz

Now that the software for managing our days is contained in an object that we pull out of our pockets dozens of times a day, and only sometimes to call or an-swer the phone, our life has changed forever and opened up to a world of new applications. For some time now, experts have been speaking of the In-ternet of things, referring to the perva-siveness of Internet that will soon en-velop objects of every kind, connecting them in a “cloud” that is ready to dialog with hundreds of other objects. The re-mote control once used to change TV channels can now be the control panel of our home. It can control the temper-ature of the various rooms, turn on ap-pliances, receive warnings concerning possible intrusions and remember the expiration date of items in the fridge. Even at a distance. The technologies that enable controlling the building now assume importance because of their ability to interact and be managed via Internet. Today, the remote control can be a smartphone or a tablet. It is not just a matter of sending signals, but also of receiving the result of the silent work that digital technology does in different areas of the building, with the

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promise of increasing our productivity, reducing wastage and increasing safety. Provided that all of this is kept simple for the individual. “We created some focus groups which have demon-strated that technology in and of itself still scares consumers. The aspect of control, the ‘Big Brother syndrome,’ prevails,” explains Angela Tumino, research director of the Internet of Things Observatory at the Polytech-nic University of Milan. “The response completely changes when shifted onto services. The proximity to the needs makes it familiar.” This is the great lesson of Apple, which has built its ex-traordinary success in recent years on the manufacture of products with a very simple interface that introduces the user to a myriad of applications. The technology is there but it doesn’t show. Home automation, on the prod-uct front, is already a reality. Less so concerning the applications and, espe-cially, the standards enabling objects to communicate with one another.What services are already widespread? “Among the traditional solutions, there are car alarms, in some cases managed by the mobile phone. These range from

italy is still at the forefront of energy saving. this is a great opportunity for italian companies working on products regarding the house to share research on the integration of home systems and the reduction of energy consumption

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in Italy and abroad that have started up in the last fi ve years, one out of three is aimed at managing energy resources. Italy holds a record in this fi eld. At the end of 2011, almost all electricity meters installed in Italy were “smart,” so that the most widespread network of con-

nected objects in our country is certain-ly that of electricity meters, with over 34 million units installed. Smart meters are the fi rst step toward smart grids, which will ensure the proper billing of consumption with a greater transpar-ency for the consumer, the introduc-tion of energy saving policies through new pricing schemes, the reduction of

microsoft homE of thE futurEnot just a hi-tech living room, but a place where the microsoft philosophy has free rein: putting people, not the device, at the center of the technological experience. a biometric pad that recognizes the owner’s hand, sensors that remind one of their plants’ needs, and intercoms connected to the smartphone are just some of the features of the house of the future recently presented by microsoft.

the technologies that enable controlling the building now assume importance because of their ability to interact and be managed via internet

the text message alerting the user that an intrusion is in progress to applica-tions linked with a camera that shows what is happening at home in real time,” continues Angela Tumino. The Polytechnic’s research, which was pub-lished a few weeks ago, devotes an en-tire chapter to the home applications of the Internet of things. Still speaking of the present, it is possible to switch hot water boilers on and off by remote con-trol, a function requested specifi cally for second houses. “Then there is the management of different lighting sce-narios, still not very widespread actu-ally, and services for the elderly and the disabled, helping them to try to live as independently as possible. Energy man-agement, meaning the solutions which monitor the loads so as to reduce fuel consumption, is a particularly relevant chapter. The applications range from homes to industrial buildings. Intesa San Paolo Bank has achieved a more than 3% reduction of the electricity con-sumption in its main branches through precise monitoring of the energy use. Among the 140 applications identifi ed

operating costs and greater effi ciency in the distribution system. At the Euro-pean level, a communication standard that applies to all is being established. Meanwhile, the research continues. The consortium Energy@home is a home automation platform that Enel, Electrolux, Indesit and Telecom Italia have been working on for two years. The objective is the development of the smart home able to self-regulate its electricity consumption by stagger-ing the starting of electrical appliances in the evening hours and coordinating them with the possibility of managing them with the smartphone, even re-motely. And then there is lighting, bur-glar alarms and microwave ovens. 2012 is a decisive year: the laboratory will be left in order to conduct the fi rst fi eld trials. Each connected product has its own internal microprocessor and chip that can communicate with oth-ers through the ZigBee standard of the wi-fi family. The estimated savings are between 10 and 30% of consumption. Another Italian project is Home Lab, set up by Indesit, Ariston Thermo, Gruppo

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Elica, Loccioni, MR&D Institute, Spes, Teuco-Guzzini and the Polytechnic University of the Marche. The consor-tium wants to set the standard for com-munication and inter-operability be-tween products and services within the home and proposes itself as the “tech-nology enabler” for Italian companies by providing a network of companies, research centers, technology and facili-ties. Andrea Merloni, President of In-desit and of the Home Lab consortium, during the inauguration of the project last April in Fabriano, in the Marche, in fact, pointed out that “Italy is still at the forefront of energy savings. This is a great opportunity for Italian com-panies working on products regard-ing the house to share research on the integration of home systems and the reduction of energy consumption.”Abroad, there are already some pilot projects of that nature, and they will take shape here in Italy in the coming months. An example is the pilot project launched six months ago by General Electric and the Louisville Gas&Electric Company in the United States, using

smart appliances that regulate their operation on the basis of the price dy-namic of energy. “Smart appliances is an area to be explored, one of the next frontiers of home automation,” states Angela Tumino. “You connect to the smart grid and take the price of the energy at that precise moment. Thus, it acts in a dynamic manner and al-lows for managing the washing cycles in such a way that they do not exceed a certain threshold of consumption, and so on.” Instead, in the industrial sector the development of integrated technology in the environment is linked to safety: cross-checking the data on the presence of people with data concerning potentially hazard-ous areas (a gas leak, fire hazard, etc.)Smart appliances are coming onto the market. In Las Vegas in January, at the CES, the largest consumer electron-ics fair in the world, LG and Samsung introduced a wide range of household items connected to the Internet: wash-ing machines, air conditioners, re-frigerators with functions that can be controlled by the TV remote control or

by your smartphone. The LG refrigera-tor notifies you via its LCD panel or by mobile phone, reminding you when some food item is about to expire (a “reader” sees the date once it is placed in the freezer). In addition, there can be recipes, tips on consumption op-timization, and so on. Easydom, Mi-crosoft and Samsung, instead, have created a digital home project that manages the appliances and light-ing, as well as music, videogame con-soles and regulation of the blinds. Everything you can think of doing inside the house can be handled by the smartphone with the Windows Mobile operating system. The specific software introducing the house of the future is called Next. Home automation sys-tems controlled by Next have already been installed in some demonstration apartments of the Eurosky Tower pro-ject in Rome, the tallest skyscraper in the Italian capital. The door opens with the key, the lights are turned on and off by scrolling up and down on the smart-phone. And thus, we are entering the last frontier of the digital revolution.

the internet of things: when it’s the smartphone that controls the house | oxygen

the objective is to develop the smart home,

able to self-regulate its electricity consumption by staggering the starting of

the electrical appliances in the evening hours

and coordinating them with the possibility of managing them with

the smartphone

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According to a recent study carried out by IHS Automotive Supplier Business, by 2015 there will be between 700,000 and one million electric vehicles in circulation. This will be the business sector of vehicles in the coming years for 45 car manufacturers, with over 75 models of electric cars. Instead, according to another study (Plug-in electric vehicles) carried out by Pike Research, electric cars and light electric vehicles will increase at a sustained annual rate until reaching the significant quota of three million vehicles by 2015. In any case, the various estimates are simply confirming the trend of the sector toward sustainable and electric mobility. The boom in electric vehicles will see a face-off in the various Western and Chinese markets because, in recent years and in this sector too, China has dictated the law for green technologies and investments in the green economy; something that Western markets, instead, have not heeded with the same shrewdness. As for Italy, estimates say that if between now and 2020, one out of every five new cars were electric, the country would have a fleet of about 10% of its cars with no emission of greenhouse gases or smog, resulting in a savings of over 5 billion gallons of gasoline (the annual consumption today is around 13 billion liters). Moreover, if the new fleet of electric cars were powered by renewable energy, Italy would cut down the emission of greenhouse gases by almost 6 million tons (1.1% of the national total).

data visualizationDv

edited by Oxygen

2015objective

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20.000LEAF CArS

sold in one year in three different continents by Nissan. The LEAF is the world’s most popular electric car (coming on the market in Italy in April 2012).

252km/H

is the speed reached on march 17th – on Lake Ukonjärvi in Inari, Lapland - by the metropolia E-rA, the electric GT made by the University of Helsinki: it is the world’s fastest electric car on ice.

140SmArTELECTrIC CArS

in milan, Bologna, Pisa and rome: used by the electric transportation pioneers who have signed a four-year contract of 400 euros per month plus VAT as part of a project, also supported by Enel.

+

in the roundmark—

will be in circulation by 2015, according to a study by ihs

automotive supplier business. according to pike research, there will be as many as three

million of them.

75DIFFErENT mODELS

of electric cars on the market in 2015, produced by 45 different auto manufacturers.

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the green shock to the automotive industry

contexts

After much talk, there are several models of purely electric cars now coming onto the market; a technology that, thanks to the experiments underway also in Italy, has proven to be widely reliable and fully ensures road safety. In order to increase the competitiveness of the electric car, it will be necessary to reduce the cost of the batteries, expected to be halved by the end of the decade, and to build an adequate system of fast charging stations.

by Roberto Rizzophotos by white

If in Florence, starting in 2016, non-residents will be allowed to drive only behind the wheel of an electric car, in Milan, these vehicles have already been exempted from paying the entry ticket into the city center, and since last Octo-ber, car sharing has become available in Paris with 250 electric cars made by the French group Bollore, designed by Pinin-farina (the number will increase to 1,740 by June). Never before as in these last few years has the electric car generated such strong interest in the general public, po-licy-makers and major manufacturers: from Renault-Nissan to PSA Peugeot-Ci-troen, from Toyota (the first Prius plug-in hybrid is about to be launched on the market) to Smart-Daimler (Enel and Mercedes have promoted the e-mobility project in various Italian cities, with over 100 Smart ForTwo Electric Drive cars and 400 charging stations). Not to men-tion the electric Fiat 500, whose produc-tion in series for the U.S. market will start in 2012 at the Chrysler plants in America. The great advantage of the electric car is that it also permits mobility using clean energy such as solar, wind and hydro-electric power: in this case, there are practically no emissions per kilometer

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traveled. But according to the data of CIVES (Italian Commission for Electric Road Vehicles), even charging the batte-ries with the Italian electricity mix consi-sting of more than 80% from low carbon sources (gas and renewable sources), the emissions would be about 80 grams of CO

2 per kilometer. Therefore, these emissions are lower than those of the Prius hybrid (about 90 gr. CO2/km). Even using the energy produced by the most polluting coal plants in Eastern Europe, the emissions would still be quite limi-ted, amounting to around 110 grams per kilometer. Just to make a comparison, in the 2010 ranking of cars sold in Europe, the most virtuous car-makers were Fiat, Toyota and PSA Peugeot-Citroen, with an average of 126, 130 and 131 grams of CO

2 per kilometer, respectively. What we have just described is not the only advantage of the electric car. These are, in fact, vehicles whose mechanisms are simplified compared to traditional ones: electric cars are fitted with fewer moving mechanical parts, which is why the vehicle is quieter, easier to drive (the transmission takes place at a fixed ratio and the cars are single speed) and the maintenance is less complex.

the battery of an electric car costs at least 7,000-8,000 euros; if we add the lack of economies of scale, this explains why electric cars cost an average of two or three times more than the corresponding ones with internal combustion motors

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bAtteries And chArging systemsThe recent rediscovery of the electric car has stemmed, on the one hand, from the urgency of finding alternatives to oil and polluting sources whose pro-ven reserves, according to the BP Stati-stical Report 2011, will suffice for only forty more years if the present rate of consumption continues. On the other hand, the electric car has had a great boost from the development of lithium-ion batteries, introduced on the market by Sony in the early Nineties and which have now become the standard for por-table applications, such as mobile pho-nes and laptop computers. Much more efficient than nickel-metal hydride and lead-acid batteries, the lithium-ion bat-teries do not suffer from memory effect (they do not lose capacity if charged when not fully discharged), and lithium is an element that is reasonably availa-ble on the Earth’s surface.According to a recent study at Yale Uni-versity, the world’s reserves of this me-tal are estimated at around 39 million tons (19 of which can be safely remo-ved: the countries where more than half of the lithium reserves can be found are Bolivia, Chile and the United States),

whereas by the end of the century, even assuming a large development of elec-tric mobility, the overall demand for lithium should not exceed 20 million tons. So, there is a lack of one million tons, but the hypotheses by the Ameri-can scientists are very conservative and, in all probability, the largest deposits will show higher exploitation levels than those estimated previously. So, isn’t everything all right? Unfortunately not: there are still some obstacles in the path of lithium-based mobility.

costs And chArging stAtions First and foremost, there is the cost of these batteries, which is about 450-500 euros per kWh. Electric cars on the market today typically mount batteries ranging between 15 and 35 kWh, which means that the battery alone costs at le-ast 7,000-8,000 euros. If we add the lack of economies of scale, this explains why electric cars cost an average of two or th-ree times more than the corresponding internal combustion ones (just think of the Peugeot iOn four-seater model that costs about 30,400 euros “keys-in-hand,” while the Smart ForTwo Electric Drive for two people costs 19,900 euros

excluding VAT). The price that is initial-ly higher, however, is compensated by the cost per kilometer: thanks to a more efficient motor, traveling a mile with an electric car on average costs five times less than with an equivalent, internal combustion car.The competitiveness of the electric car is bound to improve soon, since the goal of manufacturers is to halve the cost and weight of batteries by the end of the decade. This equals an autonomy which today is between 100 and 160 km, distances well above what is cove-red by cars in Italian cities in one day on average, which is less than 40 km. The charging time problem now also se-ems to be resolved. Fully charging a bat-tery of medium size (20-30 kW) at 220 volts (the voltage of a typical household) takes 6-8 hours, but the stations/co-lumns can be made to recharge with the power of industrial applications, i.e., up to 380 volts in three-phase mode. In this case, charging 30 kWh takes about one hour. There remains a second obstacle: the lack of a suitable network of char-ging stations to support a market that, hopefully, is bound to grow very rapidly; out of a total of about 100 million new

battEriEs—

electric carson the market today typically

mount batteries ranging between 15 and 35 kWh

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vehicles in 2020, Bosch estimates that about three million will be electric and plug-in hybrids. “A column for charging electric cars costs around 5,000 euros, therefore much less than traditional gasoline pumps,” ex-plains Pietro Menga, president of CIVES, “and experiments that have been carried out in several Italian cities have shown so far that the technology is reliable. We are also collecting information on user behavior. In the early stages of testing, the uncertainty stemming from the fear of running out of energy drove users to charge their car almost every day, but la-ter, after having verified what the actual performance was, the car would be char-ged less often, until reaching an average of once a week. We can conclude from this that a network of charging stations is not a prerequisite for the emergence of a strong market for the electric car.” For those who do not have easy access

to charging stations, or who will not want to leave their car charging for a medium-long time, Renault-Nissan has developed an alternative technology in collaboration with the Californian com-pany, Better Place. It is a matter of a fast-change system of the batteries by a ro-bot which takes 40 seconds to perform the operation. Renault-Nissan has pro-posed a special commercial offer that includes giving customers the opportu-nity not only to buy but to rent an elec-tric car and undersign a subscription that will include the rental of the bat-tery and mobility services. In this way, the vehicle is being proposed at a price comparable to that of a thermal vehicle with a diesel engine, which is equiva-lent in size and level of equipment.

the cArs’ sAfetyThe electric vehicle is part of the au-tomotive world, where there are stan-

dards and required tests established by the international organization ISO (International Organization for Stan-dardization): the crash tests, the elk test, measurement of fuel consumption and performance, etc. However, these vehicles have on-board electrical com-ponents whose regulation comes under the responsibility of the IEC (Internatio-nal Electrotechnical Commission). “The two agencies are collaborating to create the regulations applying only to electric vehicles,” explains Eng. Ferdinand Mapelli of the Polytechnic Institute of Milan, “and at this stage, a fundamental role is being played by manufacturers participating in the in-ternational technical meetings where the tests and standards are defined. From the point of view of safety, the crucial element, assessed through the frontal and side crash tests, is that, in the event of a collision, the battery stays

i movE ElEctricEnel’s electrical

mobility continues to make progress. the

number of columns is increasing; in Emilia romagna identical software has been installed in all the

charging points and a supply pass connected to the contract of sale has been created. and if you are out of your own area, a free app (Enel drive) can find the nearest charging

column.

today, scientific research is geared mainly toward optimizing the recharge time and guaranteeing the autonomy of the lithium-ion batteries, but further research is underway to test new types of electrolytes

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where it is and doesn’t end up where the passengers are seated. Secondly, it is ve-rified that the cradle holding the batte-ry, in the event of a collision, becomes deformed and possibly damages the battery itself, but without spillage of the electrolyte. This, too, is in the case of a collision with a sharp object.” In electric cars, the batteries are general-ly positioned under the seats, in a central and protected position of the vehicle. The degree of IP protection against wa-ter is also important: cars must pass the “fording test,” which verifies that no kind of infiltration occurs in the indivi-dual components. “The electromagnetic compatibility is also important,” Mapelli continues. “Large electrical currents are circulating within the vehicle and, thus, electromagnetic fields are generated that must not exceed the limits of the law relating to human health damage. The cables must also have adequate in-

sulation and must not become damaged over time. Furthermore, it is necessary to make sure that the electronic systems are not subject to electromagnetic pol-lution; in other words, turning on your mobile phone mustn’t turn off the en-gine. An additional safety factor is the presence of the inertial sensor, a device in current vehicles that, in the event of an accident, acts to turn off the engine while in electrical vehicles, it opens the switch closest to the battery.” the new-generAtion bAtteries Today, scientific research is geared mainly toward optimizing the rechar-ge time and guaranteeing the auto-nomy of the lithium-ion batteries, but further research is underway to test new types of electrolytes. Here are two of the most important ones. Within the European project “Storage,” hybrid materials are being developed ba-

sed on fibers of carbon and lithium ions which can form the car body but also act as an energy accumulator. The mate-rials made of carbon have the advanta-ge of being solid and, at the same time, lightweight but they are particularly expensive. But if the two things were to be combined (accumulation and auto-body), it would be a win-win solution. Another research project is being led by the interest group of the Fraunhofer Institute for Chemical Technology in Pfinztal (Germany), which has develo-ped a battery that recharges the flow in a few minutes, just like gasoline-powe-red cars at traditional distributors. In the flow batteries, the energy is conser-ved in the electrolyte, i.e., in the liquid in which the electrodes are immersed: when the electrolyte is discharged, it is removed from the battery and replaced with a new charged electrolyte; an ope-ration that takes just a few minutes.

the green shock to the automotive industry | oxygen

floW—

the fraunhofer institute for chemical technology in pfinztal has developed a battery that recharges the

flow in a few minutes, just like gasoline-powered cars at traditional distributors

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the mAke-it-yourself robot

With Mindstorms, you can build and program a real robot and make it do whatever you want. And with the purchase of a kit of LEGO bricks, you get everything you need to build and program a unique and intelligent robot. Making it perform different tasks and operations is the respon-sibility of the child-pro-grammer. The study and application of robotics by children develop a very active attitude toward new technologies: the robots, being real three-dimensional objects, per-fectly simulate human/animal behavior. The toy makes a technological leap, abandoning the more traditional con-structions and embracing information technology and robotics.

whAt is in the box besides the bricks?

Over 600 pieces: the elements to build the main structure, including the gears, wheels, tracks and tires. A microcom-puter acts as the robot’s brain. Two touch sensors help it to feel the space in which it moves. An ultrasonic sensor allows the robot to see and detect the movement of other objects in space. A color sensor is able to recognize different colors and monitor the intensity of light. Three interactive servo motors with built-in rotation sensors (ac-curacy is +/- one degree) facilitate the movement of the robot. A series of cables connecting the motors and sensors allow for dialog via computer. LEGO Mindstorms NXT is the second generation of

on Mars,with Lego

science at the toy store

Lovers of the red planet, budding young astronauts, Spirit and Opportunity can be yours. The two Rovers sent by NASA to Mars are landing in your living room, thanks to a LEGO project: Mindstorms. The end evolution of LEGO Technic, Mindstorms makes us forget those dear old bricks used for generations to construct buildings, machinery and transport equipment. The toys now found on toy store shelves are no longer what they once were. And LEGO products are no exception. Quite the contrary. They are keeping up with avant-garde technology.

by Davide Coero Borga

Ts

111

robotic products by the LEGO Group, which was first launched in 1998 with the Robotic Inven-tion System. NXT 1.0 has been a huge success: in-tuitive, icon-based drag-and-drop, it is a software that is simple enough for new users and flexible enough to provide power for advanced users. By selecting blocks of the program working with motors and sensors, you can create programs that range from simple to complex. And everything others have already built can be seen online. You can sha-re your own inventions with them: a community of nerds, passionate and enthusiastic children, who can also be found in real life at dedicated events and competitions. Although the basic kit comes with instructions for the construction of four models, here we are already beyond the solar system.

robot to pAtent

The idea is fascinating; that a robot vehicle, a toy, is capable of protecting a child’s room and shooting balls at intruders. A robot-like machine that recognizes

different colored objects and picks up and puts them away as you like, and can lend a hand to those who are even messier. Provided that the color sorter system can always be changed with a catapult mecha-nism able to accurately shoot balls of different colors, depending on the colors that one prefers. Still others are humanoid robots, easy to assemble and with more features: they walk, run, dance, speak with a voice synthesizer, can see and avoid obstacles in their path, grab, jump, react in an intelligent way ... if programmed well. On the occasion of Engi-neers’ Week, a program, supported by IBM, has been launched for the dissemination of scienti-fic culture in schools, as well as an educational workshop entitled “Mis-sion to Mars,” which consists of designing and planning a virtual Rover landing on Mars to perform a specific task: retrieve a rock sample from the ground and car-ry it onto the spacecraft. An activity also taken up by museums and science festivals. Because playing is always a privileged access key to science.

the robots, being real three-dimensional objects, perfectly simulate human/animal behavior. the toy makes a technological leap, abandoning the more traditional constructions and embracing information technology and robotics

oxygen2007/2012Andrio AberoGiuseppe AccorintiZhores AlferovEnrico AllevaColin Andersonmartin AngioniIgnacio A. AntoñanzasPaola AntonelliAntonio Badiniroberto BagnoliAndrea BajaniPablo BalbontinPhilip BallUgo BardiPaolo BarelliVincenzo Balzaniroberto BattistonEnrico BelloneCarlo BernardiniTobias Bernhardmichael BevanPiero BevilacquaNick BiltonAndrew BlumBorja Prado EulateAlbino Claudio BosioStewart BrandLuigino BruniGiuseppe Bruzzanitimassimiano BucchiPino BuongiornoTania Cagnottomichele CalcaterraPaola Capatanomaurizio CapraraCarlo CarraroFederico CasalegnoStefano CaseriniValerio CastronovoIlaria Catastinimarco CattaneoSilvia CerianiCorrado CliniCo+Life/Stine NordenSøren rudElena ComelliAshley CooperPaolo Costamanlio F. CovielloGeorge CoynePaul CrutzenBrunello CucinelliPartha Dasguptamario De CaroGiulio De Leomichele De Lucchiron Dembo

Gennaro De micheleGianluca DiegoliPeter DroegeFreeman Dysonmagdalena EcheverríaDaniel EgnéusJohn Elkingtonrichard ErnstDaniel Estymonica FabrisCarlo FalciolaAlessandro FarruggiaFrancesco FerrariPaolo FerriTim FlachStephen FrinkAntonio GaldoAttilio GeroniEnrico Giovanninimarcos GonzàlezDavid GrossJulia GutherSøren HermansenThomas P. HughesJeffrey InabaChristian kaiserGeorge kellParag khannaSir David kingmervyn E. kingHans Jurgen köchCharles LandryDavid Lanemanuela LehnusJohan LehrerGiovanni LelliFrançois LenoirJean marc Lévy-LeblondIgnazio LicataArmin LinkeGiuseppe LongoArturo LorenzoniL. Hunter Lovinsmindy Lubberremo LucchiTommaso maccararoGiovanni malagòrenato mannheimerVittorio marchisJeremy m. martinPaolo martinellomassimiliano mascolomark maslinIan mcEwanJohn mcNeillDaniela mecenateLorena medel

Joel meyerowitzStefano micelliPaddy millsGiovanni minolimarcella mirielloAntonio moccaldirenata molhoCarmen monfortePatrick mooreLuca morenaLuis Alberto morenorichard A. mullerTeresina muñoz-NájarUgo NespoloNicola NosengoHelga NowotnyAlexander Ochsrobert OerterAlberto OliverioSheila OlmsteadVanessa OrcoJames Osbornerajendra k. Pachaurimario PagliaroFrancesco ParesceClaudio PasqualettoAlberto PastoreFederica Pellegrinimatteo PericoliEmanuele PeruginiCarlo PetriniTelmo PievaniTommaso Pinciomichelangelo PistolettoViviana PolettiStefania PrestigiacomoGiovanni PrevidiFilippo Preziosimarco rainòFederico rampiniJorgen randersCarlo rattiHenri revolmarco ricottiSergio risalitikevin robertsLew robertsonkim Stanley robinsonAlexis rosenfeldJohn rossmarina rossiBunker royJeffrey D. SachsGerge SalibaJuan manuel SantosTomàs SaracenoSaskia Sassen

Steven ShapinClay ShirkyUberto SiolaCraig N. SmithAntonio Sofi Leena SrivastavaFrancesco Staracerobert StavinsBruce SterlingStephen TindaleChicco TestaChiara Tonellimario TozziIlaria TurbaLuis Alberto UrreaAndrea VaccariNick VeaseyJules VerneUmberto Veronesimarta VincenziAlessandra Violamathis WackernagelGabrielle WalkerElin WilliamsChanghua Wukandeh k. YumkellaEdoardo ZanchiniCarl Zimmer

Testata registrata pressoil tribunale di TorinoAutorizzazione n. 76del 16 luglio 2007

Iscrizione al roc n. 16116

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