Terna to invest EUR 21bn to enhance Italy’s power grid

Italian power grid operator Terna SpA (BIT:TRN) plans to spend over EUR 21 billion (USD 22.3bn) in the next ten years to expand the national electricity network in order to enhance its reliability, cut reliance on foreign supply and help the wider integration of renewables.

The investment is part of the company’s 2023 development plan for the national grid. The proposed amount is 17% higher than Terna’s previous 10-year plan, the company said on Wednesday.

The main pillar in the investment programme is the creation of a hypergrid network with high-voltage direct current (HVDC) connections that will double the exchange capacity between market zones. Five new electricity backbones that will integrate renewable energy capacity will be built as part of the project, consuming EUR 11 billion of the planned spending. The scheme also envisages major power line upgrades and the construction of new undersea connections.

Additionally, Terna will improve and develop cross-border interconnections with some EUR 2 billion.

“The investments included in the 2023 Development Plan are Terna's highest ever and will have a decisive enabling effect on the energy transition and the achievement of the targets adopted by Europe and Italy,” said Stefano Donnarumma, CEO of Terna.

(EUR 1.0 = USD 1.062)

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