All the details on Terna's new investments
There will be a strong acceleration of investments in Italy for Terna: a total of € 8.9 billion (+ 22% compared to the previous plan) and 95% of these, based on the criteria of the future European taxonomy, will be sustainable. Not only that: the manager of the Italian grid will be strengthened in his central role as director and enabler of the Italian system and of the energy transition. And a large part of the appropriations will be used for the construction of new submarine connections that will transform the Italian network into a springboard to bring energy to central and northern Europe as well. These, in summary, are the salient points of the 2021-2025 Business Plan presented by the CEO Stefano Donnarumma.
DONNARUMMA: WE WANT TO STRENGTHEN TERNA'S ROLE IN ITALY AND IN THE MEDITERRANEAN
"Through this Business Plan we want to strengthen Terna's fundamental role not only for the national electricity system, but for our entire country, with a look at the Mediterranean context of which Italy is the natural energy hub – declared Stefano Donnarumma, Director Terna's delegate in a note -. The investments that we will implement over the next five years represent a formidable driving force for recovery and will bring benefits to all Italians: it is essential to act today to deliver an increasingly reliable, efficient and decarbonised electricity system to the next generations. Italy has exceptional opportunities: Terna, director and leader of the electricity system, wants to make them possible ”.
WHAT TERNA WILL DO IN THE MEDITERRANEAN
And Terna's foreign strategy focuses on the Mediterranean: as anticipated, part of the investments will be used to build new submarine connections that will transform the Italian grid into a springboard to bring energy to central and northern Europe as well. Over the next five years, 300 million will be committed to the project of a cable that will connect Italy and Tunisia: it will be the first between the two continents and will bring the production of renewables from North Africa to Europe, entering service in 2027. A project which should be directly connected with the European (and Italian) strategy of green hydrogen production through the use of clean sources.
In fact, the same company underlines "with the aim of achieving the challenging objectives set by the PNIEC , which envisage approximately 30 Gigawatts of additional photovoltaic installed power by 2030, Terna could increase its role as a 'turn-key' supplier of projects related to development of this renewable source as part of non-regulated activities. Given the different time horizon and the need for an adequate legislative and regulatory context, these initiatives are not included in the 2021-2025 Business Plan, but are relevant in order to accelerate the energy transition and reach the ambitious targets assigned by Italy and the Europe".
REGULATED ACTIVITIES ITALY
As regards the regulated activities in Italy, which continue to represent the Group's core business, Terna plans to invest € 8.9 billion to develop, modernize and strengthen the national electricity transmission grid, confirming Terna's role as enabler of an increasingly complex, sustainable and technologically advanced electrical system. These investments will generate important benefits for the whole system, well above their cost.
For the development of the national electricity grid, € 5.4 billion of investments will be foreseen aimed at increasing the transport capacity between the different market areas by solving the congestions currently present, rationalizing the networks in the main metropolitan areas of the country and increasing the interconnections with foreign countries. Among the most important projects envisaged by the 2021-2025 Industrial Plan are the Tyrrhenian Link (1.8 billion) – the interconnection between Campania, Sicily and Sardinia which will contribute to the decarbonisation of Sardinia, integrating different market areas with important benefits in terms of efficiency, to support the increased production of renewables expected in Sicily (starting from large offshore wind projects) and for the decarbonisation of Sardinia. In addition to contributing to the northward passage of electricity.
Not to be forgotten is the power line that will connect the area of Colunga (province of Bologna) to that of Calenzano (province of Florence), thus ensuring a significant increase in the exchange capacity between the Center-South and the Center-North; the power line that will connect the two shores of Sicily from Chiaramonte Gulfi (province of Ragusa) to Ciminna (province of Palermo), improving the quality and continuity of electricity supply in the Region; as well as the SA.CO.I.3, the strengthening of the connection between Sardinia, Corsica and the Italian Peninsula.
EFFICIENCY 2.4 BILLION
2.4 billion euros will be dedicated to the renewal and efficiency of assets, mainly destined to improve the quality of service and processes, as well as the development of sustainable solutions for the electricity grid.
SECURITY 1.2 BN
1.2 billion euros will be dedicated to the Security plan, mainly intended to support the interventions necessary for voltage regulation and dynamic stability of the electricity system, such as, for example, the installation of synchronous compensators in the most critical points of the network. Also within this plan, all the actions necessary to face the risks associated with the occurrence of increasingly extreme climatic events, the frequency of which has intensified in recent years following climate change, through targeted investments and innovative solutions, were also envisaged. , also capable of positively influencing the increase in the resilience of the electricity system.
The new Plan also pays great attention to uses which, albeit through a limited use of capital, can bring great benefits both for the solution of network problems and in terms of overall market efficiency.
Thanks to all the planned investments, the value of regulated assets (RAB) will reach 21.8 billion euros in 2025, with a CAGR over the Plan period of 6%, a strong increase compared to the previous Plan. At the end of 2021 the RAB will be equal to 16.7 billion euros, while at the end of 2020 the figure is expected to be 16.1 billion euros.
Non-regulated activities will be aimed at developing innovative and digital technological solutions to support the energy transition, in full consistency with the Group's core business. In particular, these activities include: Energy Solutions, services on high voltage and smart grid infrastructures, as well as energy efficiency services offered through Avvenia; the offer of connectivity, dark fiber as well as housing and hosting services for telecommunications operators; industrial activities in the field of power transformers and terrestrial cables offered by Tamini and Brugg, the development of which will make it possible to make the process of internalising distinctive skills already started by Terna even more efficient.
Non-regulated activities are expected to make a contribution to the Group's EBITDA of approximately 450 million euros cumulated over the Plan period, against a limited commitment in terms of investments and risk.
THE INTERNATIONAL OBJECTIVES
As regards international activities, Terna is now active in some Latin American countries, where it aims to maintain its presence with the aim of enhancing its skills and increasing its know-how in international high and very high voltage grids.
In addition to the projects in progress in Brazil, Peru and Uruguay, the 2021-2025 Business Plan envisages seizing new opportunities capable of bringing further growth in terms of EBITDA in the face of low levels of risk and limited capital use. In particular, Terna plans to invest up to a maximum of € 300 million in new projects over the period of the Plan.
Terna therefore expects that, overall, the international activities will bring to the Group a cumulative contribution in terms of EBITDA of more than 200 million euros in the period of the Plan.
INNOVATION AND DIGITIZATION
Over the next five years, new technologies and digitalization will have ever greater importance for Terna, gradually assuming an even more central role, because these elements are now essential to enable the energy transition for the benefit of the whole system.
In particular, Terna will dedicate approximately € 900 million, of the total 8.9 million, to digitization and innovation, continuing with the remote control activities of the power stations and main infrastructures, through the installation of sensor systems, monitoring and diagnostics, including predictive ones, for the benefit of network and territory security. Innovation and new technologies will also make it possible to generate value for the whole system and the market.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/ecco-i-prossimi-collegamenti-sottomarini-di-terna/ on Mon, 23 Nov 2020 09:52:36 +0000.