TERNA - NETWORK MODERNISATION AND DEVELOPMENT

The investment programme to be financed by the Bank comprises schemes for the reinforcement, modernisation and development of the Promoter's electricity transmission network in Italy during the period 2020-2024. The project will increase security of supply and facilitate the integration of additional renewable energy generation capacity to the national transmission system.

The project is a multi-component investment programme comprising schemes for the reinforcement, modernisation and development of the Promoter's electricity transmission network in Italy. The project will increase security of supply and facilitate the integration of additional renewable energy (RES) generation capacity to the national transmission system. The project includes, on top of classical transmission assets, other investments to increase the ability to accommodate RES generation capacity, in particular synchronous condenser to support the stabilisation of the network and increase operational efficiency.

The Programme contributes to strengthening and making more efficient the transmission system, and allowing the integration of more renewable electricity generation capacity. The Programme tackles multiple market failures, namely security of supply, market integration, and negative carbon and air pollution externalities. The investments are planned across the country, with half in cohesion regions. The Programme supports the EIB priority policies on Competitive and Secure Energy, Cohesion Regions and Climate Action. The investments contribute to achieving the national and EU long-term energy and climate goals.
The quality of the project is very good, underpinned by excellent economic profitability, over and beyond the financial profitability, and by a good governance profile.
The EIB support to this operation is expected to contribute to accelerating the implementation of the underlying schemes, by lowering the associated cost of funding, by offering a maturity beyond the tenor usually offered by commercial banks, more flexible disbursement mechanics, and wider interest rates options, than those normally proposed by the market.

Some of the schemes may fall under Annex I or II of Directive 2014/52/EU amending the EIA Directive 2011/92/EU, thus requiring a review by the competent authorities at the planning/consent stage with due regard to the necessity for environmental and biodiversity assessments. The potential impacts of the project include vegetation clearance, noise and disturbance during construction. Environmental impact studies will be carried out as applicable and mitigating and/or compensation measures will be applied as necessary. The environmental and social due diligence will focus on the Promoters' capacity to implement the programme in line with EIB environmental and social standards and requirements.

The Promoter will have to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/25/EU, where applicable, as well as Directive 92/13/EEC and Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required according to the Italian Legislative Decree 50/2016.