(Alliance News) - Enabling the achievement of the European objectives of the "Fit-for-55" package, fostering the integration of renewable sources, developing interconnections with foreign countries, increasing the level of security and resilience of the electricity system, and investing in the digitization of the grid. These are the cornerstones of the 2023 development plan for the national transmission grid presented by Terna Spa on Wednesday.

More than EUR21 billion of investment over the next 10 years, 17 percent more than the previous plan, to accelerate the energy transition, foster the country's decarbonization, reduce dependence on foreign sources of supply, and make the Italian electricity system increasingly environmentally sustainable.

Calculating the entire life of the works included in this development plan, beyond the 10-year horizon, the total amount of investment will exceed EUR30 billion.

The main innovation introduced by the 2023 development plan is the Hypergrid network, which will take advantage of DC power transmission technologies - High Voltage Direct Current - to achieve energy transition and security goals.

In addition to the development work already planned, Terna has planned five new power backbones, functional for the integration of renewable capacity, with a total value of around EUR11 billion.

"This is a massive modernization of existing power lines on the Tyrrhenian and Adriatic backbones of the peninsula and to the islands, which includes new 500 kV submarine connections, an element, the latter, that represents a first for the company. With Hypergrid, it will be possible to double the exchange capacity between market zones from the current 16 GW to more than 30 GW. In addition, the development of DC backbones will make it possible to minimize land consumption and impact on the territory," the company explained.

"The investments included in the 2023 development plan are the highest ever planned by Terna and will enable in a decisive way the energy transition and the achievement of the goals that Europe and Italy have set themselves," said Stefano Donnarumma, Terna's CEO.

"Never as today, in a particularly challenging context, is there a need for a long-term planning effort, a coordination between institutions that will allow Italy to seize all the opportunities that the transition brings. Renewable sources represent our oil: enabling their diffusion and integration is part of our mission as directors of the electricity system and will be decisive for our country's energy security."

Terna's planned interventions will therefore make a significant contribution to achieving the goals set at the European level by the Fit-for-55 Package of Measures, which calls for a 55 percent reduction in CO2 emissions by 2030 compared to 1990 levels. In Italy, energy produced from renewable sources will have to cover at least 65 percent of final consumption in the electricity sector by 2030, up from the 55 percent previously indicated by the Integrated National Energy and Climate Plan, for a total of 70 GW of additional power.

In the new development plan, which has been published every two years since this year, Terna has included more than 30 infrastructure projects, giving high priority to interventions deemed strategic for the entire national electricity system, maintaining the works included in the previous 10-year plan and including the new Hypergrid grid projects.

The lines of action of the 2023 development plan include increasing the capacity for trading between market zones through the development of enabling and innovative infrastructure; exploiting infrastructure synergies with already planned strategic interventions for the country, such as the Tyrrhenian Link and the Adriatic Link, and using existing infrastructure and brownfield sites to integrate the grid, while reducing environmental impact; enabling renewable energy sources; and increasing grid resilience with a forward-looking approach to measuring grid risk in case of extreme weather events.

In continuity with previous 10-year plans, Terna aims to strengthen and develop interconnections with foreign countries, envisaging a total investment of around EUR2 billion.

"In fact, an interconnected grid contributes to the achievement of the goals set by the energy transition, enabling greater integration of renewable energy in a safe and efficient manner."

Crucial will be the Italy-Tunisia interconnection project, an intervention of strategic importance that will ensure the optimization of energy resources between Europe and North Africa. In December, the MASE started the authorization process for the 600 MW submarine energy bridge, for which an investment is planned by Terna and Steg, the Tunisian electricity operator, of about EUR850 million in total. Of this, EUR307 million will be financed through Connecting Europe Facility, the EU fund earmarked for the development of key projects aimed at upgrading the EU's energy infrastructure.

Also confirmed in the 2023 development plan is the Sa.Co.I.3 project, the connection between the electricity systems of Sardinia, Corsica and the Italian peninsula, for a total investment of EUR950 million.

In addition, in the second half of 2023, Terna will launch the public consultation for the new submarine cable with Greece, 200 km long and 500 MW, which will double the exchange capacity between the two countries. For the work, Terna will invest EUR750 million.

These interconnections, together with the power lines between Italy-France, Italy-Switzerland and Italy-Austria, will allow our country, by virtue of its strategic geographical position, to strengthen its role as the energy hub of Europe and the Mediterranean area, becoming a major player internationally.

Terna's stock is down 0.4 percent at EUR7.28 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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