Investment plan

Terna announces an investment plan of 11 billion dollars for the energy transition

Italy-based transmission system operator (TSO) Terna has announced a €10 billion ($11 billion) investment in Italy’s energy transition, energy independence and decarbonization efforts.

The company’s board of directors has approved the investment as part of its 2021-2025 “Driving Energy” industrial plan.

Terna aims to strengthen its role in driving the Italian electricity system in accordance with the objectives set by the National Integrated Plan for Energy and Climate (PNIEC) and the EU Green Deal, which aims to reduce gas emissions to greenhouse effect of at least 55% by 2030.

Its strategy will mainly focus on the development of electricity infrastructure, the integration of renewable sources and energy storage systems, as well as cross-border interconnections.

Terna said that its development initiatives will focus on three strategic areas, namely regulated activities in Italy, non-regulated activities and international activities..

Regarding regulated activities in Italy, which remain the core business of the group, the company plans to invest 9.5 billion euros to develop, modernize and strengthen the national transport network.

It will also invest 2.6 billion euros to revamp Italy’s existing infrastructure and replace its overhead lines with underground cables.

In addition, Terna plans to invest 1.3 billion euros in the Defense Plan to strengthen the technical and technological capabilities of the system.

Stefano Donnarumma, CEO of Terna, said: “Our capital expenditure, which has a key role to play in enabling Italy and Europe to achieve the objectives that have been set, will allow us to integrate the renewable sources and to electrify consumption and to guarantee ever greater safety and efficiency. provision, an adapted system and a better quality of service, while reducing costs for consumers and businesses.

Reuters reported that Terna plans to divest its assets in Latin America, which could be worth around 270 million euros in total.

The company derives most of its revenue from its home network.

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