Terna S p A : rewards sustainable innovation developed in the company and launches a new platform for startups and SMEs

In the update to the 2021-2025 'Driving Energy' Business Plan, Terna has earmarked € 1.2 billion

of investments for innovation and digitalisation

TERNA REWARDS SUSTAINABLE INNOVATION DEVELOPED IN THE

COMPANY AND LAUNCHES A NEW PLATFORM FOR STARTUPS AND SMEs

De-Icing,Orion and Reliability were the winning projects in the second edition of Terna Ideas, the

corporate entrepreneurship programme dedicated to the Group's people

A challenge on data science for resilience for the maintenance of the assets open also to the

external Al ecosystem will begin in 2023

Rome, 14 December 2022 - Terna has rewarded the sustainable innovation ideas developed in the company with the corporate entrepreneurship programme Terna Ideas and at the same time has launched a new platform open also to startups, researchers and innovative SMEs, with the objective of identifying solutions and initiatives capable of contributing to the energy transition.

The 2022 edition of Terna Ideas was won by the following business ideas: De-Icing, which provides for the use of a heat box to melt the ice sleeves that form on the conductors of power lines in the winter months, a solution that makes it possible to intervene remotely; Terna Reliability, a device that monitors the technical parameters of transformers and optimises activities to make the assets more efficient for the benefit of the resilience of the entire electricity system; Orion, an artificial intelligence algorithm that helps to improve the resolution of the satellite images needed to identify promptly buildings and structures interfering with the easement bands of power lines. A special mention, also, for Electrendicity, a simulator game for training on the electricity market, a key topic for enabling the energy transition.

The 2022 edition of Terna Ideas - a programme designed to spread the culture of corporate innovation and generate ideas to be transformed into technological solutions to strengthen its role as director and enabler of the energy transition - involved the entire corporate population and, in particular, saw this year the participation of approximately 250 people. The Chairwoman of Terna, Valentina Bosetti, and the Chief Executive Officer, Stefano Donnarumma, were on the jury for assessing and selecting the projects together with the members of the BoD and the top management.

One of the main new features of the 2022 edition of Terna Ideas was sustainability, which acquired more centrality becoming one of the key and transversal criteria, in the stage of proposing the ideas but also in that of assessing them. There are three challenges in the competition, focused on searching for ideas regarding: the evolution of training and methods of work; more efficient grid management through digital tools and data optimisation; and solutions that consolidate the Group's commitment to the circular economy.

Employees were invited to take part individually or in teams, presenting their idea or lending their skills to support one of the proposed initiatives. Entries were submitted via a special platform, which also featured chat rooms and a forum to enable colleagues to debate and share ideas. The initiative began in April 2022 and was structured as follows: 10 events of the Innovation Roadshow around the country, approximately 1400 people registered on the platform, 250 active participants. A total of 85 ideas were published, 10 of which followed dedicated incubation development, while for the three winning initiatives the road opens now for project development.

"With 'Terna Ideas' we want to put the Group's personnel at the centre, offering our colleagues the possibility to express themselves as entrepreneurs, encouraging their potential and promoting creativity and skills. The best ideas will now have the opportunity to become concrete projects, accessing an integrated acceleration pathway in the innovation processes, creating value for the company and not only for the company. For 2023 we have in fact decided to take a step forward, launching a new Terna Ideas platform, open also to innovative startups and SMEs, a change that will make it possible for us to involve increasing numbers of Italian technological businesses and strengthen further our open innovation approach for the energy transition, of which we are the main enablers", said Massimiliano Garri, Terna's Innovation & Market Solutions Manager.

For the 2023 edition, the Terna Ideas corporate entrepreneurship platform is being transformed into an open innovation tool open also to the external ecosystem: communities of startups, scaleups, innovative companies, researchers and problem solvers will, in fact, be able to propose ideas and initiatives for the energy transition. Precisely on this new virtual space (ternaideas.terna.it), from 15 December 2022, Terna will launch a challenge on the theme of Data Science for Resilience, for the search for solutions capable of enhancing the corporate data assets and for supporting Terna's activities in the context of predictive maintenance and monitoring of electricity infrastructures, to make them even more secure, efficient and resilient.

Innovation, both technological and cultural, is one of the pillars on which Terna's business is based. In the update of the 2021-2025 'Driving Energy' Business Plan, the company headed by Stefano Donnarumma has in fact planned approximately € 1.2 billion of investments - of the total of 10 billion

• dedicated to innovation and digitalisation. In particular, Terna will focus on technologically advanced solutions for the remote management of substations and transmission infrastructure, thanks to the use of sensors, monitoring and diagnostic systems, predictive management tools, virtual reality and artificial intelligence, aimed at improving the security, reliability and resilience of the electricity networks and providing benefits for local communities.