Terna to invest $18 B in grid by 2028
Terna announced plans to help the country integrate renewable energy sources into its economy and make the network digital and more flexible.
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Italy, Rome: Italian power grid company Terna announced it would invest €16.5 billion ($18 billion) by 2028 to help the country integrate renewable energy sources into the economy and make the network digital and more flexible. This represents a 65% increase in capital expenditure in the group’s 2024-2028 plan drafted by new Chief Executive Giuseppina Di Foggia, compared to a previous strategy.
The plan does not explicitly mention mergers and acquisitions, but according to Di Foggia, Terna is considering the possibility of buying distribution assets. Media reports from last month said Terna could spend €1.5 billion to buy distribution assets from utilities in Italy.
In its industrial plan, Terna announced it expected to boost its adjusted core earnings by over 8% percent on average every year to 2028. Earnings before interest, taxes, depreciation and amortisation (EBITDA) could reach €3.25 billion in 2028 from €2.17 billion recorded last year.
The Italian government wants to generate 65% of its electricity from renewable energy sources by 2030, phasing out coal by 2028 and reducing gas-fired power plants. Terna will work to prepare the system to manage increasing volumes of renewable energy.
Among the projects listed in the plan are the Tyrrhenian Link, a submarine cable that will connect Sicily with Campania and Sardinia; the Adriatic Link, a connection between the regions of Abruzzo and Marche; and an interconnection between Italy and Tunisia.
Source: Reuters