Edison

glossary of CLEAN energy

Biomass: Agricultural waste or the product of specific crops that can be burned in facilities that produce thermal energy and electric power (cogeneration).

BSI OHSAS 18001: An international standard issued by the British Standards Institute that establishes the requirements of a
safety management system and allows an organization to draw up a safety policy and establish objectives, taking into account
legislative aspects and information on significant risks.

CDM: International cooperation mechanism created under the Kyoto Protocol to develop projects that reduce carbon dioxide
emissions in developing countries and, at the same time, generate credits that can be used to achieve emission reduction
objectives.

CO: Carbon monoxide, a toxic gas coming from incomplete combustion of the carbon present in fossil fuels.

CO2: Carbon dioxide, a natural component of the atmosphere and a gas produced by the combustion of fossil fuels that
contributes to the greenhouse effect.

Cogeneration: Simultaneous production of electrical and thermal energy (in the form of steam).

Combined cycle (CCGT, Combined-Cycle Gas Turbine): A facility for the production of electrical power consisting of a gas
turbine whose hot exhaust is used to produce steam, which in turn drives a steam turbine.

Corporate governance: The Green Book defines corporate governance as “the complex of relationships that exist between
managers, Directors, shareholders and other company stakeholders.”

Effect on the environment: A significant consequence having a (positive or negative) qualitative or quantitative impact on the
environment (emission released or avoided, waste generation, etc.).

Electric Power and Gas Authority: An independent entity that regulates and controls services in the electric power and natural
gas industries.

Electromagnetic fields: Non-ionizing radiations caused by the presence of electrical currents.

EMAS: European Union Regulation 761/2001 concerning voluntary compliance by industrial companies with an EU system of
ecomanagement and auditing.

Emissions trading (ET): System developed by the European Union to allow trading of greenhouse gas emission allowances.
This system is the first in a series of tools that will be used to achieve greenhouse gas reduction targets.

Environment: The context in which an organization operates, including the air, water, land, natural resources, plants, animals,
people, and their interrelations.

Environmental consequence: The output of any activity that may have the effect of totally or partially changing the
environment, with either negative or beneficial consequences.

Environmental policy: A statement made by an organization indicating its intentions and principles in connection with its overall
environmental, safety and quality performance. It provides a reference for the activity being done and for defining goals and
targets with regard to the environment, safety and quality.

Environmental, safety and quality management system (SGA, SGS, SGQ): The portion of the general management
system that includes the organizational structure, planning activities, responsibilities, practices, procedures, processes and
resources for developing, implementing and maintaining a stated environmental, safety and/or quality policy.

Environmental, safety or quality audit: A systematic and documented verification process for determining and assessing,
based on objective evidence, whether the environmental, safety or quality management system implemented by an organization
complies with its stated environmental, safety or quality policy.

Fuel cells: Electrochemical devices that convert energy produced by a chemical reaction directly into electric power.

Fuel oil: A mixture of products from the distillation of petroleum used as a fuel for the production of heat, categorized as HSC
(high sulfur content > 2.5%), MSC (medium sulfur content > 1.3% and < 2.5%), LSC (low sulfur content > 0.5% and < 1.3%),
and VLSC (very low sulfur content < 0.5%).

Gigawatt (GW): Unit of measure equal to one billion watts (one million kilowatts).

Gigawatt-hour (GWh): Unit of measure equal to one million kilowatt-hours.

Green energy: Electric power produced from renewable sources (water; geothermal, solar and wind energy, and biomass).

Greenhouse effect: A phenomenon by which the Earth’s temperature is raised due to the excessive presence of certain gases (CO2, CH4, N2O, HCFS, PCFS, SF6) that prevent radiation from escaping the Earth.

Joint implementation: International cooperation mechanism created under the Kyoto Protocol for the development of joint
projects that reduce carbon dioxide emissions in countries the economies of which are in a transition phase, thereby generating
credits that can be transferred to or acquired by a company to help it achieve its emission reduction targets.

Kilowatt-hour (kWh): Unit of measure of electric power, equal to 1,000 Watts per hour.

Legislative Decree: It has the full force of a normal law since its inception because it is enacted by the executive branch by
virtue of a specific authorization from Parliament. Since it is issued under the authority of the legislative branch, it does not need
be converted into a law.

Megawatt (MW): Unit of measure equal to one million watts.

Megawatt-hour (MWh): Unit of measure equal to 1,000 kilowatt-hours.

Microgeneration: Generation of electric power with systems that are small and flexible enough for widespread use in the field.

Ministry Decree: Each Minister, within the jurisdiction of his/her Ministry, may issue regulatory decrees without legislative
authority, provided they do not conflict with national laws. They serve only regulatory purposes.

Natural gas: A gaseous fossil fuel consisting of methane and small traces of other hydrocarbons.

Nm3: Normal cubic meter, a volume of gas at 0 °C and 0.1 MPa.

NOX: Nitrogen oxides (primarily NO and NO2) gases produced by the combustion of fossil fuels. They contribute to the
formation of ozone in the lower atmosphere and acid rain.

One million m3 of gas equivalents: One million cubic meters of gas equivalents, corresponding to 830 TOE.

Particulate matter: In the case of emissions into the atmosphere coming from a combustion process, all the solid microscopic
particles dissipated in the exhaust.

Power: Work performed in a unit of time or energy produced in a unit of time, generally stated in watts (W) or multiples thereof,
such as kilowatts (kW), equal to 1,000 watts, or megawatts (MW), equal to 1,000 kilowatts.

Prime Minister’s Decree: This measure, which serves guidance purposes, is issued by the Prime Minister on exceptional
occasions, with the contribution of his/her cabinet, or only some of the Ministers, for the purpose of providing solutions to
problems already covered by the existing laws.

Risk management: Processes and tools used to prevent or manage nonrecurring and unforeseeable events that could have an
impact of varying type and intensity on a company.

Sm3: Standard cubic meter, a volume of gas at 15.6°C and 0.1 MPa.

SOX: Sulfur oxides, gases produced by the combustion of fossil fuels containing sulfur. They contribute to the formation of acid
rain.

Stakeholders: All clearly identifiable individuals or groups who can have an impact on the success of an enterprise or who have
an interest in the decisions of an enterprise: shareholders, employees, customers, suppliers, public institutions, local communities,
media, interest groups and even competitors.

Steel-mill gases: Gases generated in steel mills by coke ovens and blast furnaces as byproducts of the production of cast iron,
coke coal and steel. These gases are used as fuel in certain thermoelectric plants for the production of electrical power.

Sustainability: The ultimate goal of socially responsible behavior, which is to provide a form of development that meets today’s
needs without compromising those of future generations.

Sustainability Index: Stock market index that reflects trading in shares of companies selected on the basis of their ability to
meet certain financial, environmental and social responsibility requirements.

TOE: Ton oil equivalent, a conventional unit of energy equivalent to 10 million kcal, used to quantify any source of energy in
terms of its thermal value.

Triple bottom line: A three-dimensional approach that measures the overall performance of an enterprise on the basis of an
integrated reporting of its financial, social and environmental performance.

UNI EN ISO 14001 Standard: An international standard setting the requirements for an environmental management system
that allows an organization to draw up an environmental policy and establish objectives, taking into account legislative aspects
and information on significant environmental impacts.

UNI EN ISO 9001 Standard: An international standard that establishes the criteria that a system must follow in providing
services and products in order to ensure the satisfaction of the customer’s requirements and expectations.

Volt: Unit of measurement of electromotive force.

Watt: Unit of measurement of electric power.