Terna Invests €23 Billion to Modernize Italy’s Grid

Terna, the preeminent Italian electricity transmission company, has unveiled its far-reaching 2025-2034 Development Plan with more than €23 billion to upgrade the national power grid. The investment, a 10% jump on earlier plans, is a crucial milestone in Italy's power sector transformation. The plan complements national and EU decarbonization and energy security objectives and cements Italy's determination to minimize carbon emissions and increase the proportion of renewable sources.

Unveiling the plan, Terna CEO Giuseppina Di Foggia highlighted the need to modernize and digitalize Italy's grid to respond to the increasing energy needs and incorporate renewable energy. "Investing in planning, modernising and digitising electricity grids will be essential to cope with the growing demand for energy and the integration of renewable sources," Di Foggia said. The aim of this infrastructure transformation is to provide a secure, resilient, and sustainable Italian energy system that can meet both present and future demands.

The focal point of the development strategy is a set of major projects that are designed to enhance Italy's energy exchange capacity, increase the resilience of the grid, and enable integration of renewable sources of energy. Among the most important projects are the Tyrrhenian Link, Adriatic Link, and the Sardinia-Corsica-Tuscany connection, along with the Italy-Tunisia energy bridge. All these projects, together with upgrades to current infrastructure, will play a critical role in interconnecting renewable sources throughout Italy, encouraging energy exchanges, and overall grid performance of the country.

Among the most important projects to be undertaken in the new development strategy, the Tyrrhenian Link is one of the most significant. The €3.7 billion HVDC (High Voltage Direct Current) submarine cable will link Sicily, Sardinia, and Campania, boosting the grid's capacity to absorb renewable energy. Set to be up and running by 2028, this initiative will assist in the transmission of clean energy around Italy's southern regions, thereby speeding up Italy's shift to renewable power. Likewise, the Adriatic Link, which is a 1,000 MW link between Abruzzo and Marche, will increase grid stability along Italy's coast and is due to be up and running by 2029.

Another prominent project is the Bolano-Annunziata Line, a 380 kV submarine line that will enhance energy exchange between the mainland and Sicily. The line will increase the ability to exchange energy, making it easier to flow electricity from renewable sources and enhancing overall grid stability. These are only a preview of what's on the horizon, as Terna has developed plans for future projects after 2030, including the Milan-Montalto HVDC link, the Tuscany-Umbria Central Link, and the Adriatic Backbone, connecting Foggia and Forlì.

These improvements will make their mark. Terna expects these infrastructure enhancements to cut CO₂ emissions by some 2,000 kt a year by 2030 and potentially up to 12,100 kt by 2040. In addition to contributing to Italy's decarbonization goals, these measures will also enable the country to achieve the targets of the National Energy and Climate Plan (NECP) 2030, including deep cuts in greenhouse gas emissions and a higher percentage of renewable energy in the country's energy mix.

Along with the emphasis on renewable energy, the new infrastructure plan by Terna also deals with the increasing energy connection requirement from new technologies such as data centers and energy storage facilities. As the growth in these technologies is gaining pace, the updated grid will have to deliver efficient and reliable connections. Terna's new Efficient Territorial Planning model aims to resolve grid saturation challenges, cut down administrative tardiness, and minimize costs. This will prove vital in the bid to help Italy stay competitive in terms of attracting foreign investors seeking to capitalise on the nation's booming renewable energy business.

The initiative of grid modernization is complemented by regulatory reforms introduced more recently, for example, ARERA (Regulatory Authority for Energy, Networks, and Environment) simplifications and new ministerial decrees. These steps will seek to accelerate the approval process for grid projects, minimizing lead times and facilitating quicker implementation of infrastructure upgrades. In addition, Terna's grid growth will be supported by market-based tools such as the Capacity Market and MACSE (Italy's innovative electrical storage capacity procurement mechanism), which will assist further in backing the country's energy transition.

Terna's 2025-2034 Development Plan is a visionary and ambitious plan for Italy's energy future, with the goal of having a more connected, efficient, and sustainable grid. Through investments in modernization, digitalization, and interconnection, Terna is laying the groundwork for a more resistant energy system that can sustain the nation's increasing need for clean energy. Through this strategic initiative, Italy is far ahead in achieving its decarbonization and energy security objectives, stepping into the role of a global leader in renewable energy transition.