The Terna Group’s business
The Terna Group’s current business model is structured around two areas of business.
The main one consists of Regulated Activities, in accordance with the obligations arising from the government concession. Terna, owner and operator of the high and very-high-voltage National Transmission Grid (NTG), therefore performs a public service role to ensure the country’s electricity supply. It operates under a monopoly regime, in accordance with the rules laid down by the Regulatory Authority for Energy, Networks and the Environment (ARERA) and in implementation of the guidelines issued by the Ministry of Economic Development.
More specifically, the Group’s regulated activities are divided into:
- Transmission: Terna is Italy’s Transmission System Operator (TSO). It manages NTG planning, development and maintenance activities.
- Dispatching: as System Operator, Terna ensures all the activities necessary to maintain the balance between electricity demand and supply in Italy, 365 days a year, 24 hours a day.
Terna has also developed and carries out a series of Non-Regulated Activities, always geared towards supporting the energy transition in line with its core business, making the Group’s expertise and experience in the energy sector available to businesses and commercial and industrial customers. In this capacity, it offers a wide range of high value-added technological and innovative solutions.
The main one consists of Regulated Activities, in accordance with the obligations arising from the government concession. Terna, owner and operator of the high and very-high-voltage National Transmission Grid (NTG), therefore performs a public service role to ensure the country’s electricity supply. It operates under a monopoly regime, in accordance with the rules laid down by the Regulatory Authority for Energy, Networks and the Environment (ARERA) and in implementation of the guidelines issued by the Ministry of Economic Development.
More specifically, the Group’s regulated activities are divided into:
- Transmission: Terna is Italy’s Transmission System Operator (TSO). It manages NTG planning, development and maintenance activities.
- Dispatching: as System Operator, Terna ensures all the activities necessary to maintain the balance between electricity demand and supply in Italy, 365 days a year, 24 hours a day.
Terna has also developed and carries out a series of Non-Regulated Activities, always geared towards supporting the energy transition in line with its core business, making the Group’s expertise and experience in the energy sector available to businesses and commercial and industrial customers. In this capacity, it offers a wide range of high value-added technological and innovative solutions.
Regulated Activities: electricity transmission and dispatching
Within the electricity system value chain (generation, transmission, distribution and sale of electricity), Terna occupies the central segment through its transmission and dispatching activities.
As a Transmission System Operator (TSO), Terna not only has to design a grid capable of dealing with progressive decarbonisation and the ever-growing integration of renewable sources (Transmission Operator), but also ensure that, moment by moment, consumer demand for energy is constantly balanced with production, through dispatching (System Operator). Terna has the key and delicate role of guaranteeing this balance through a high-technology system, using a specific market, in which it makes daily purchases of the services necessary to constantly ensure the continuity and security of electricity supply.
In addition to strengthening the domestic grid, Terna is required to develop interconnection capacity with other countries’ electricity systems. Indeed, Italy is electrically connected with France, Switzerland, Austria, Slovenia, Montenegro, Greece, and Malta via 30 interconnecting lines.
In addition to strengthening the domestic grid, Terna is required to develop interconnection capacity with other countries’ electricity systems. Indeed, Italy is electrically connected with France, Switzerland, Austria, Slovenia, Montenegro, Greece, and Malta via 30 interconnecting lines.
National Transmission Grid
Terna operates Italy’s high and very-high-voltage National Transmission Grid (NTG), one of the most modern and technologically advanced in Europe.
This operational process is divided into three areas:
• the planning of development measures for the National electricity Grid;
• the construction of works;
• the maintenance of electricity infrastructure.
The sustainability approach developed by Terna takes the form of transparent management of the Group’s social and relational capital, involving all stakeholders affected by development measures, with a view to fostering ever greater awareness of the importance of the construction and management of electricity infrastructure.
This operational process is divided into three areas:
• the planning of development measures for the National electricity Grid;
• the construction of works;
• the maintenance of electricity infrastructure.
The sustainability approach developed by Terna takes the form of transparent management of the Group’s social and relational capital, involving all stakeholders affected by development measures, with a view to fostering ever greater awareness of the importance of the construction and management of electricity infrastructure.
Integration of renewable sources into the National electricity Grid
The management of high-voltage connection requests submitted by developers of renewable energy projects enables Terna to maintain an overall view of the current situation and future scenarios. As the TSO, Terna is able to monitor the system’s ability and adequacy to meet electricity demand while ensuring compliance with security and quality of service requirements.
Terna has an obligation to connect all potential users requesting connection to the grid, identifying connection solutions in terms of criteria that guarantee the continuity and secure operation of the grid to which an applicant’s new plant will be connected. Terna is responsible for high and very high voltage connections to the NTG of plants with a capacity of 10 MW or more.
As at 31 December 2025, Terna had received applications for connection to the National Transmission Grid (NTG) for 329 GW of new renewable capacity, of which 146.2 GW related to solar and 180.2 GW to wind power (onshore and offshore). These can be monitored and consulted through the Econnextion7 digital platform, launched by Terna in 2023 in collaboration with the Ministry of the Environment and Energy Security, which centralises information on high-voltage connection applications for renewable energy plants, storage systems and end users in Italy.
At 31 December 2025, Terna was handling around 7,800 applications for connection to the NTG in relation to future or existing initiatives. As regards Renewable Energy Source (RES) plants, there were over 5,900 connection applications to the NTG with a General Minimum Technical Solution (STMG), of which 5,268 had an accepted solution, corresponding to approximately 290 GW.
The data show that:
• the South and the Islands cover numerically 77% of the renewable source applications, for an equivalent power of more than 79% of the total;
• a sharp increase was registered in applications for the connection of new distribution plants and for upgrades to existing plants by local distributors, with the aim of harnessing production from renewable sources;
• 83 connection contracts were signed in 2025 (representing total capacity of approximately 3 GW), relating to the construction of new RES plants.
Considering all renewable sources, according to Terna’s data, the increase in capacity in Italy as at 31 December 2025 amounted to approximately 7.2 GW.
As at 31 December 2025, Italy had over 83 GW of installed capacity from renewable sources, broken down by source as follows:
Terna has an obligation to connect all potential users requesting connection to the grid, identifying connection solutions in terms of criteria that guarantee the continuity and secure operation of the grid to which an applicant’s new plant will be connected. Terna is responsible for high and very high voltage connections to the NTG of plants with a capacity of 10 MW or more.
As at 31 December 2025, Terna had received applications for connection to the National Transmission Grid (NTG) for 329 GW of new renewable capacity, of which 146.2 GW related to solar and 180.2 GW to wind power (onshore and offshore). These can be monitored and consulted through the Econnextion7 digital platform, launched by Terna in 2023 in collaboration with the Ministry of the Environment and Energy Security, which centralises information on high-voltage connection applications for renewable energy plants, storage systems and end users in Italy.
At 31 December 2025, Terna was handling around 7,800 applications for connection to the NTG in relation to future or existing initiatives. As regards Renewable Energy Source (RES) plants, there were over 5,900 connection applications to the NTG with a General Minimum Technical Solution (STMG), of which 5,268 had an accepted solution, corresponding to approximately 290 GW.
The data show that:
• the South and the Islands cover numerically 77% of the renewable source applications, for an equivalent power of more than 79% of the total;
• a sharp increase was registered in applications for the connection of new distribution plants and for upgrades to existing plants by local distributors, with the aim of harnessing production from renewable sources;
• 83 connection contracts were signed in 2025 (representing total capacity of approximately 3 GW), relating to the construction of new RES plants.
Considering all renewable sources, according to Terna’s data, the increase in capacity in Italy as at 31 December 2025 amounted to approximately 7.2 GW.
As at 31 December 2025, Italy had over 83 GW of installed capacity from renewable sources, broken down by source as follows:
Connections
Dispatching of electricity
Except in specific and limited circumstances, electricity cannot be stored. Therefore, it is necessary to produce, moment by moment, the amount of energy required by all consumers (households and companies) and to manage its transmission so that supply and demand are always balanced, thus guaranteeing the continuity and security of the electricity supply.
Terna manages these energy flows through the grid via dispatching activity, which comprise:
• the scheduling of network unavailability10 and generation plants over different time horizons;
• the forecasting of national electricity demand;
• the consistency check between this demand and the generation schedule, as determined by the outcome of the liberalised electricity market (Electricity Market and over-the-Counter contracts);
• the procurement of dispatching resources;
• the verification of power flows on all grid lines.
This area of operation also includes management of the Dispatching Services Market (MSD), through which the resources for dispatching services are procured.
In fact, real-time control of the National Electricity System is ensured by the National Control Centre, the nerve centre of the Italian National Electricity System, which was renovated in 2024, more than 60 years after its establishment (1963). The National Control Centre:
• coordinates the other control centres around the country;
• monitors the electricity system;
• dispatches electricity, intervening through instructions to producers and remote Management Centres, in order to modify supply and capacity on the grid;
• to avoid the risk of prolonged power outages, it may also intervene in an emergency to reduce demand.
Terna manages these energy flows through the grid via dispatching activity, which comprise:
• the scheduling of network unavailability10 and generation plants over different time horizons;
• the forecasting of national electricity demand;
• the consistency check between this demand and the generation schedule, as determined by the outcome of the liberalised electricity market (Electricity Market and over-the-Counter contracts);
• the procurement of dispatching resources;
• the verification of power flows on all grid lines.
This area of operation also includes management of the Dispatching Services Market (MSD), through which the resources for dispatching services are procured.
In fact, real-time control of the National Electricity System is ensured by the National Control Centre, the nerve centre of the Italian National Electricity System, which was renovated in 2024, more than 60 years after its establishment (1963). The National Control Centre:
• coordinates the other control centres around the country;
• monitors the electricity system;
• dispatches electricity, intervening through instructions to producers and remote Management Centres, in order to modify supply and capacity on the grid;
• to avoid the risk of prolonged power outages, it may also intervene in an emergency to reduce demand.
Non-Regulated Activities: solutions for the energy market
The Terna Group’s Non-Regulated Activities are developed in close alignment with its core business. They consist of solutions and services designed to enable the energy transition, through which the Group makes its expertise in the design, engineering, operation and maintenance of plants available to industrial and commercial customers through complex, innovative and digital solutions in the energy sector.
These activities are structured into four macro-business areas, the first three of which fall within the scope of Terna Energy Solutions S.r.l.:
These activities are structured into four macro-business areas, the first three of which fall within the scope of Terna Energy Solutions S.r.l.:
7 https://dati.terna.it/en/econnextion#renewable-sources.
8 The different areas of the country include the following regions:
North: Valle d’Aosta, Piedmont, Liguria, Lombardy, Veneto, Trentino-Alto Adige, Friuli-Venezia Giulia, Emilia-Romagna, Tuscany.
Centre: Marche, Umbria, Lazio, Abruzzo, Molise.
South: Campania, Puglia, Basilicata, Calabria.
9 Project proponents are developers and operators that submit connection initiatives to the National Transmission Grid. These include, in particular, developers of electricity generation plants, mainly from renewable sources; developers of storage systems; and end users requesting connection to the transmission grid.
10 Network unavailability refers to the periods during which one or more elements of the electricity grid (e.g. lines, substations, etc.) are not usable, either wholly or partially, for operation of the system.
