San Marino's dependency on imported fuels
San Marino, the third-smallest country in Europe, is entirely dependent on imported fuels to meet its energy needs. Each year, it consumes approximately 155,000 tons of oil, translating to a per capita consumption rate that is about 30% higher than that of Italy. This high demand for energy can be attributed to the country’s limited size, a growing economy, and significant tourism, alongside daily cross-border commuting. Notably, San Marino lacks internal power generation plants, relying entirely on electricity imports from Italy's ENEL utility and methane from Snam Rete Gas.
To address rising energy demands, the Republic has initiated projects focused on renewable energy sources, including wind, solar, and geothermal power, while also promoting energy efficiency through its public service company, AASS. The government aims to reduce overall energy consumption and greenhouse gas emissions significantly by 2030. Despite low energy prices due to subsidies, there is an ongoing need to enhance energy efficiency in various sectors to maintain competitiveness. The interplay of energy imports, consumption habits, and emerging renewable projects shapes San Marino's energy landscape, reflecting both challenges and opportunities for sustainability.
Subject Terms
San Marino's dependency on imported fuels
Official Name: Republic of San Marino.
Summary: The Republic of San Marino is the third-smallest country in Europe. It is completely dependent on energy from abroad, but the potential for some renewable energy sources and energy efficiency policies could in part satisfy the growing energy demand.
Every year, the Republic of San Marino consumes the equivalent of 155,000 tons of oil to meet its energy needs. Consumption per capita is about 30 percent higher (about 4 tons of oil equivalent per capita per year) than the Italian average (3 tons of oil equivalent per capita per year). This consumption could be partially justified by the country’s limited area, its low number of residents, the large number of economic activities in the area, the number of border crossings daily to go to work, and the high flow of tourists. On the other hand, low energy tariffs certainly do not help to promote a culture or policy of energy conservation.
Increasing Demand for Energy
The republic has a growing economy, and, as in all industrialized countries, the development of the economy has brought an increasing demand for energy. As a result, the consumption of electricity, methane, and water increased accordingly. There are no internal power generation plants, and the supply of electricity is totally the result of imports from the Italian electric utility ENEL. The electricity consumed in the republic comes through two high-voltage lines located in Cailungo and in Rovereto, which branch out into other lines to reach end users. Methane is also imported from abroad.
, Gas, Renewables
The Public Service Autonomous Company (Azienda Autonoma di Stato per i Servizi Pubblici, or AASS), which is responsible for procurement and distribution of energy resources within San Marino, is working to raise awareness of responsible energy consumption and conservation. Moreover, AASS, in cooperation with some Italian universities, has established projects for the development of alternative energy sources, such as wind energy. The Republic of San Marino has created an energy plan that establishes the key objectives to be pursued, including a 15 percent reduction in energy consumption and a total energy savings of 11 percent.
Each year, the issuance of an Italian legislative decree is necessary to settle claims concerning Italian imports; this instrument also provides price stability for natural gas shipped to San Marino by guaranteeing a certain interconnection capacity at the Swiss border and an allowance from the proceeds from granting rights to use transport capacity at the French border. The transport capacity of natural gas coming from abroad and access to storage facilities allow for the economic purchase of gas, protecting the country’s energy budget. In this way, the Italian decree provides San Marino with the opportunity to move forward with investment in developing energy from renewable sources while ensuring reliable, comprehensive civil and industrial development.
The total supply of natural gas imports comes from the Italian distribution firm Snam Rete Gas. Only the public administration is still a consumer of heating oil, and thanks to a deliberate policy carried out from the late 1970s onward, construction of the methane grid is now complete. The cost for natural gas supplies increased substantially between 1994 and 2006, by 208 percent, particularly in 2005, when the increase was greater than 30 percent over the previous year.
To date, energy prices for consumers remain low because of subsidies, but to remain competitive, the country will need to increase energy efficiency in buildings, facilities, production processes, and products. It will also need to develop and implement renewables such as solar power (both thermal and photovoltaic), wind power, and geothermal power.
In 2015, the Republic of San Marino instituted the Intended Nationally Determined Contribution Policy. According to the policy, San Marino has commited to reducing greenhouse gas emissions to 20 percent below their 2005 levels by 2030.
Bibliography
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"San Marino." BBC, 2024, www.bbc.com/news/world-europe-17842338 Accessed 6 Aug. 2024.
"San Marino." CIA World Factbook, 2024, www.cia.gov/the-world-factbook/countries/san-marino. Accessed 6 Aug. 2024.