Thursday, April 26, 2007

Drought Threatens Italy Economy

The ANNOTICO Report

 

Italian factories may have to close down this summer due to possible electricity shortages caused by a prolonged drought, with rain levels at 50% average, and above-average temperatures, and reservoirs only half full.

 

Critics charge those conditions are exacerbated by under investment in aqueducts, resulting in 42%  leakage/waste of water.

 

Europe News
Drought may Close Factories in Italy, Business Guild Warns

From Monsters and Critics.com
By DPA
Apr 26, 2007

Rome - Italian factories may have to close down this summer due to possible electricity shortages caused by a prolonged drought and above-average temperatures, the head of the country's main business guild has warned.

In remarks published on Thursday by Italian daily Corriere della Sera, Confindustria president Luca Cordero di Montezemolo accused the government of shortsightedness and complacency in dealing with water management.

'For too long (governments) have been unable to plan long-term investments in basic public sectors such as the water network, with the result that we now risk having to close down factories this summer,' Montezemolo said

According to a forthcoming report by environmentalist group Legambiente, extracts of which were published by daily La Repubblica on Thursday, about 42 per cent of Italy's water is wasted by the country's ageing aqueducts.

Italy invested 2.3 billion euros (3.1 billion dollars) in its aqueducts in 1985 compared to 700 million euros in 2005, Legambiente said.

The Romano Prodi cabinet began discussing the crisis on Tuesday but has yet to declare a state of emergency and approve extra funds needed to cut water waste.

Meteorologists say average rain levels have fallen by between 20 and 50 per cent since September, leaving rivers, lakes and reservoirs at about half their normal levels.

According to Guido Bertolaso of Italy's civil protection agency, this summer is likely to be the hottest since 2003, when unusually high temperatures sparked electricity blackouts as scores of Italians switched on their air conditioners, consuming more electricity than was available.

Terna, the company that manages Italy's power grids, has estimated that electricity consumption will rise by an extra 8,000 megawatts in June. Economist Alberto Clo says this would result in an electricity shortage of about 15 per cent.

Italy relies on imports for its electricity consumption and temporary rises in demand are normally provided by the country's power plants, which in turn need plenty of water to operate.

Industry is by far the biggest consumer of electricity, with data provided by Terna showing Italy's factories needed more than double the amount of electricity used by families in 2005.

 

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