INSIDE THE ENERGY TRANSITION Home About Us Inside the energy transition Share The role played by Terna and its investment strategies is essential in managing the profound transformation currently under way in energy generation and consumption An urgent and necessary evolution. We live in a highly complex age: with the rapid growth in global population, our energy model is no longer sustainable and the world is calling for global commitment as soon as possible for gradual decarbonisation. Taking up this challenge means guaranteeing efficiency across all energy sectors. The Paris Agreement on climate and international goals for decarbonisation and sustainable development are fundamental considerations for our strategic decisions. The national plan. Italy has defined an Integrated National Plan for Energy and the Climate (Piano nazionale integrato per l’energia e il clima or “PNIEC”) mapping out the goals and actions to tackle climate change. The plan calls for a 55% reduction in emissions by 2030, and meeting this target constitutes our major challenge for the future. The national electricity system is already shifting from a centralised model to one that is integrated and distributed: until about 2000, we dispatched electricity coming from about 800 power stations; now we have about 800,000 generation plants in action in Italy and that’s poised to grow to 1 million in the near future with the introduction of renewable energy plants whose output can’t be programmed. The fundamental elements for managing this transformation are new digital technologies, which make it possible to collect information, transfer large data flows, store them and analyse them quickly and effectively. This is the context for Terna’s industrial plan which sets out investment of € 8.9 billion between 2021 and 2025. This represents a 22% increase on the previous plan, targeted at managing the energy transition and guaranteeing secure integration of renewables and the development needs of the Italian national electricity grid. DIRECTING THE TRANSFORMATION Terna has a central role in the energy transition, both as an enabler of the transition of the power market towards renewables and also as an increasingly strategic leader in the wider process of transformation. To achieve the global decarbonisation goal, the electricity grid represents the main enabling factor. Our ten-year Development Plan ensures a grid that is capable of managing this progressive decarbonisation and ever greater integration of renewable generation systems. Our mission We are engaged in driving and enabling the ecological transition in order to create a new development model based on renewable sources and respect to the environment. Sustainability, innovation and distinctive competencies are behind everything we do, with the aim of providing the generations to come with a clean, accessible and emission-free energy future. To reach these energy and climate goals, it is increasingly necessary to ensure close collaboration between the main players in the energy sector: institutions, businesses and associations, allowing a harmonised vision of possible scenarios and guaranteeing the essential actions required of all parties involved. The sustainability approach enables Terna to leverage the creation of value in the medium to long term, in line with the objectives of the Industrial Plan and, by monitoring environmental, social and governance risks associated with the Group’s activities, it also contributes to their achievement. With this awareness, Terna deploys the best tools to ensure objectivity and methodological soundness in all the processes of analysis, monitoring, measurement and reporting of the ESG aspects of our businesses. These are set out in a Sustainability Model that fits in perfectly with the Business Model, of which it forms an integral part. In terms of general values, the foundations of the “Sustainability Model” coincide with the Group’s mission and Code of Ethics, as well as with the Group’s intellectual capital consisting of all our policies, procedures and guidelines. Our distinctive elements We are Europe’s largest independent electricity transmission operator. We have the major responsibility for providing the country with energy, ensuring security, quality and cost-effectiveness over time. We manage Italy’s high-voltage electricy transmission grid, one of the most modern and technologically advanced in Europe, which we are working to develop and integrate with the European grid, guaranteeing secure and equal access to all grid users. We are developing Non-Regulated activities and new business opportunities, making our expertise and experience available in Italy and overseas. BUSINESS MODEL GOVERNMENT CONCESSION REGULATOR (ARERA) MINISTRY FOR ECONOMIC DEVELOPMENT Planning, development and maintenance of the national transmission grid for high-voltage electricity (Transmission Operator) Round-the-clock balancing of electricity demand and supply throughout Italy through operation of the electricity system (System Operator) T R A N S M I S S I O N REGULATED ACTIVITIES I N T E R N A T I O N A L D E C A R B O N I S A T I O N G O A L S C L I M A T E C H A N G E L E G I S L A T I V E A N D R E G U L A T O R Y F R A M E W O R K D R I V I N G A N D E N A B L I N G T H E E C O L O G I C A L T R A N S I T I O N G R O W I N G C O M P L E X I T Y O F T H E S Y S T E M EXTREME EVENTS UN SDGS EU’S GREEN DEAL PROGRESSIVE DECLINE IN THERMOELECTRIC PRODUCTION GROWTH OF RENEWABLE SOURCES ELECTRIFICATION OF CONSUMPTION SECURITY ADEQUACY QUALITY OF SERVICE EFFICIENCY RESILIENCE D I S P A T C H I N G CREATION OF SHARED VALUE SUSTAINABILITY INNOVATION Open Innovation Business solutions PEOPLE NexTerna (New ways of Infrastructure development System integration INTERNATIONAL ACTIVITIES NON-REGULATED ACTIVITIES Energy Solutions Connectivity Industrial SHAREHOLDER VALUE DEVELOPMENT IN ITALY A SECURE, HIGH-QUALITY ELECTRICITY SYSTEM GRID RESILIENCE AND EFFICIENCY INCREASINGLY SUSTAINABLE INFRASTRUCTURE E N A B L I N G F A C T O R S > go to Sustainability model FUNDAMENTAL ASPECTS OF THE ELECTRICITY SYSTEM Shifting to a decarbonised energy model requires transmission system operators (TSO) to maintain high levels of service quality and continuity in a more complex electricity system characterised by the growing importance of non-programmable renewables such as solar, wind and hydroelectric power. In addition, there has been an increase in extreme weather events in recent years, which are becoming far more frequent than in the past. Terna responds to these changes by choosing to play an ever more strategic role for the entire power system and making a clear commitment, even in financial terms with our biggest spending proposals yet and a strategic plan focused on sustainable development, with five fundamental areas of system-management: security, adequacy, service quality, resilience and efficiency. Role of TSO Security the electricity system’s ability to withstand changes in its operating status following sudden disturbances, without violating the system’s operating limits. Adequacy the system’s ability to satisfy electricity demand while complying with safety and quality of service requirements. Quality of service the ability to ensure the continuity and quality of service. Resilience the system’s ability to withstand stresses above its set limits and to return to normal operating status, possibly with temporary actions. Efficiency the ability to operate the electricity system in compliance with the requirements of security, adequacy and quality, at the minimum total cost to the citizen/user. DECARBONISATION OF THE ELECTRICITY SYSTEM IN ITALY AND EUROPE The targets set out in Italy’s energy and climate plan foresee the complete phase-out of coal by 2025 and an increase in the share of renewables, which are set to rise to 30% of gross final energy demand by 2030, from 18%. To reach this target, Italy will need to increase its total installed capacity from 120 gigawatts (GW) to 155 GW, almost entirely from non-programmable sources, such as wind power and solar photovoltaics. Solar PV generation, for example, will need to grow from today’s 20 GW to 52 GW by 2030. That means an extra 30 GW of PV, nothing less than a revolution. Based on the scenarios mapped out by Terna and Snam the amount of renewables will require further growth through 2040. TARGET SET IN THE PROPOSED PNIEC (THE INTEGRATED NATIONAL PLAN FOR ENERGY AND CLIMATE) -33% GREENHOUSE GAS EMISSIONS COMPARED WITH 2005 LEVELS -43% PRIMARY ENERGY CONSUMPTION COMPARED WITH THE TREND SCENARIO 30% PENETRATION OF RENEWABLES AS A PROPORTION OF GROSS FINAL ENERGY CONSUMPTION 10% INTERCONNECTION TARGET 2025 PHASE-OUT OF COAL Terna is a key player in the European context, including in relation to ENTSO-E, the body bringing together 43 Transmission System Operators from 36 European countries, which at EU level is responsible for adopting the European Network Codes on cross-border issues, the ten-year European network development plan, and common tools for coordinating management of the grids. ENTSO-E’s core activities can be divided into four areas of action: security of supply, functioning of the energy market, promoting energy saving, and promoting interconnection of energy grids. The shared goal is greater integration of European grids for a continental system that is increasingly secure and efficient, serving citizens and businesses. ITALY Rome Terna https://www.terna.it/ TERNA IS THE FIRST GRID OPERATOR FOR ELECTRICITY TRANSMISSION IN EUROPE. WE PROMOTE THE ENERGY TRANSITION AND SUSTAINABLE DEVELOPMENT BY FOCUSING ON PEOPLE AND INNOVATION. We work every day to build an atmosphere of dialogue and trust in local areas, to which we bring a vital asset for everyone’s economic and social lives: electricity. > FIND OUT MORE Useful links CALENDAR GENERAL ARCHIVE CERT REAL ESTATE ASSETS ACCESSIBILITY PRIVACY COOKIE DECLARATION LEGAL NOTICE INSERT CV Portals PURCHASES SUPPLIERS QUALIFICATION GAUDI GSTAT ENERGY DISTRIBUTORS MY TERNA TITOLARI RTN OUR SITES: OPEN AND TRANSPARENT SETTLEMENT CERTIFICATION WHISTLEBLOWING TERNA PLUS TERNA S.p.A. - Capitale sociale € 442.198.240 interamente versato - Sede Legale in Italia, Viale Egidio Galbani, 70 - 00156 Roma - Tel +39 06 83138111 Registro delle Imprese di Roma - Codice fiscale e Partita IVA 05779661007 - R.E.A. di Roma 922416