TERNA ELECTRICITY TRANSMISSION GRID RENEWAL

The project will support the renewal of the Italian electricity transmission network. The investment programme, to be implemented by 2026, mainly concerns assets reaching the end of their technical life and therefore being at a great risk of failure.

The aim is to replace obsolete components (e.g. conductors, transformers, supports, among others) with more modern and efficient ones, to improve the network resilience to adverse climate events and the overall stability and reliability of the national transmission system.

The Project comprises investments in the electricity transmission network in Italy over the period 2023-2026. The Project addresses the needs for the renewal of existing assets and planned development, including reinforcement of overhead lines, replacement of asset components and undergrounding. The Project contributes to maintaining or increasing security of supply by reducing the risk of supply interruptions, and it contributes to climate adaptation. Part of the investment will benefit transition and less developed "Cohesion" regions in Italy.

The support of the Bank brings a substantial financial benefit to the Project by lowering the associated cost of funding and offering a tenor longer than the one usually available in the market. The EIB financial value added is even more tangible under the ongoing market instability and turmoil generated by current geopolitical situation.

Some of the schemes of the programme may fall under Annex II of the Environmental Impact Assessment (EIA) directive. No EIA is expected according the national legislation as the promoter indicated that no scheme will be above 100 kV with a length of more than 3 Km and renewal of underground cables with a length above 40 km. The environmental and social due diligence will focus on the promoters' capacity to implement the programme in line with EIB's environmental and social standards and requirements.

The Bank will require the Promoter to ensure that contracts for the implementation of the Project are tendered in accordance with the applicable EU procurement legislation, Directive 2014/25/EU as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.