Terna to invest US$ 10.45 bn to improve Italy's grid, expanding cross-border connections

Mar 25, 2022 04:49 PM ET
  • Italian grid driver Terna will certainly invest EUR9.5 billion (US$ 10.45 billion) to aid improve the country's nationwide transmission grid and construct cross-border affiliations, paving the way for less complicated accessibility for renewables.
Terna to invest US$ 10.45 bn to improve Italy's grid, expanding cross-border connections
Image: Andy Beecroft

Total capital investment from 2021 up until 2025 will certainly be EUR10 billion as well as is to be concentrated on improving Italy's grid in between the southern areas, where most power is generated, and the north regions where the need is greatest, to assist incorporate the rise of sustainable projects in addition to power storage space and also structure cross-border affiliations.

With the RePowerEU approach to enhance solar PV in Europe with the addition of 420GW by 2030, improvements to Italy's transmission grid will assist in the integration of greater amounts of renewables and power storage space as well as help reduce grid congestion in the nation.

In the modified commercial plan, Terna will certainly invest EUR5.6 billion for that function as well as among its plans is the Tyrrhenian Link project which will include a high-voltage line attaching the Italian regions of Sardinia, Sicily and also Campania.

Various other projects include an interconnector between Sardinia, Tuscany and also France's Corsica, as well as a power line attaching Emilia-Romagna as well as Tuscany.

In addition, the Italian business plans on constructing new interconnectors with France, Austria, Greece and also Tunisia in order to strengthen its "role as a European as well as Mediterranean electricity transmission hub".

"Our capital expenditure [of EUR10 billion], which has a key role to play in making it possible for Italy as well as Europe to meet the goals that have actually been set, will certainly allow us to incorporate sustainable sources as well as energize intake and to assure ever better protection and also effectiveness of supply, a system that is fit for objective and improved quality of service, whilst reducing costs for consumers as well as companies," stated Stefano Donnarumma, Chief Executive Officer of Terna.

From the total financial investment for its controlled tasks, EUR2.6 billion will certainly be alloted to modernise the present facilities in order to enhance the rise in electricity circulation, with the continuing to be EUR1.3 billion (US$ 1.43 billion) for its "Defence Plan".

Terna claimed this will certainly aid improve the stability of the system as well as improve voltage laws, along with safeguarding the grid's resilience to accrued severe climate.

Terna's planned investment for that period will certainly boost its controlled assets worth to EUR22.7 billion in 2025, with a CAGR of 7% during that period, closing 2022 EUR1 billion more than 2021.

The company claimed its interior technical improvements in the past number of years helped the acceleration to solve congestion in certain locations of the grid with an increase of 400MW of capacity in between the southern and northern parts of Italy.

From the EUR10 billion capital expenditure for 2021-2025, EUR1.2 billion will certainly be invested in digitalisation as well as innovation to improve its transmission facilities and also the resilience of the grid.

Terna is expecting its non-regulated activities to bring greater than EUR450 million to the firm's EBITDA throughout 2021-2025 through its O&M activities, fibre network and industrial tasks.

In the monetary facet, Terna anticipates this year's profits to get to EUR2.74 billion and also rise to EUR3.08 billion in 2025, with an expected EBITDA of EUR1.9 billion in 2022 and EUR2.14 billion in 2025.

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